To Support Programs in Neurological Disorders
Cerecin Inc., a clinical-stage biotechnology company pioneering innovative neurotherapeutics, announced on Oct. 19 that it has raised US$40 million in an oversubscribed round of financing. A Series II investment was initially made by long-term investor, Nestle. In follow up to this round, Series IIA was led by SK Securities, Hana Financial Investment, Partners Investment, Arche Investment, and K&T Investment. Other new investors that participated in this round included Shinhan Investment, IBK Capital, KB Securities, M Capital, and Medici Investment.
Kim Ki-kab of K&T Partners and An Jae of Partners Investment join Cerecin’s Board as Board Director and Board Observer. Concurrent with this transaction, Cerecin signed an agreement with Hana Financial Investment to act as the lead manager in a potential listing on the Korea Exchange (KRX).
“We are delighted to have this syndicate of leading institutions join our base of long-standing investors. Like Nestle and Wilmar, these new investors share our long-term vision of developing a new class of therapeutics targeting the metabolic basis of many neurological diseases. This support is a strong endorsement of our science and our plans to take our tricaprilin programs to approval,” said Charles Stacey, president and CEO of Cerecin. “Cerecin has well-established links and synergies with South Korea, having both early investors and strategic partners from the country. We are encouraged by the significant interest that public and private investors have shown in neuroscience and in innovative drug development programs. We are optimistic that this path will support Cerecin’s long-term plans to develop a disruptive platform of novel drugs that will impact millions of lives.”
In the past year, Cerecin received orphan drug designation and rare pediatric sisease designation from the U.S. FDA for its lead investigational compound, tricaprilin, in infantile spasms. Subsequently, the company initiated a pilot study to assess safety, tolerability and efficacy in infantile spasms, and has also commenced a phase 2 study in migraine prevention. The proceeds of this financing will fund the expansion of the company’s current studies and support the planning and initiation of a global phase 3 study in Alzheimer’s disease. Cerecin will also invest in product development and expansion of its pipeline. Over the next 18 months, Cerecin anticipates achieving several inflection points and milestones, including the readout of current trials and initiation of later stage studies in epilepsy, migraine and Alzheimer’s disease.
Kim Jae-wan, CEO at Partners Investment, added: “We are excited to support Cerecin’s highly innovative technology platform. Cerecin is building a portfolio of new therapies that have the potential to deliver benefits to patients across a broad spectrum of diseases. There is a large opportunity due to the great unmet need for effective and well tolerated drugs in neurological disorders. We are also pleased to be investing alongside Cerecin’s long-standing partners, Nestlé and Wilmar, both influential leaders in science and innovation.”
Hans-Juergen Woerle, chief medical officer and chief scientific officer at Nestle Health Science, commented: “Nestle is pleased to continue our support of Cerecin and to be joined by a group of leading investors and institutions who share our vision for the company and the technology. Together we are confident that we have the expertise, technology and capital to have tremendous impact on people around the world.”