Neurelis announced today that it closed a $114 million Series D financing round to support its lead orphan drug product.
San Diego-based Neurelis’ Valtoco (diazepam nasal spray) is a proprietary formulation incorporating the science of Intravail transmucosal absorption enhancement technology. The drug enables the noninvasive delivery of a range of drugs, while the company focuses on treating epilepsy.
Valtoco has FDA approval, and the company also received orphan drug exclusivity Valtoco’s intranasal route of administration as “a clinically superior contribution” compared to a rectal gel formulation of the drug that is the standard of care, according to a news release.
In a long-term, open-label, repeat-dose clinical trial evaluating Valtoco in treating more than 4,000 seizures, the drug was generally safe and well-tolerated, the company said.
“We are excited about the immediate and long-term future at Neurelis,” Neurelis president & CEO Craig C. Chambliss said in the release. “We have been able to assemble an impressive leadership team with extensive experience in neurology that has enabled Valtoco’s clinical development, regulatory success, and commercial launch in 2020. Valtoco has become a trusted brand to people with epilepsy.
“This new financing helps us build on a successful foundation as we advance Neurelis as a best-in-class neuroscience company focused on epilepsy. We are grateful to our exceptional investors and look forward to bringing more innovative, life-changing products to the patients who need them.”
In the financing, which will also be used to continue the development and expansion of the company’s neuroscience pipeline, Neurelis said Cormorant Asset Management and Decheng Capital joined existing investors LYZZ Capital and HBM Healthcare Investments. Philos & Partners SA organized other investors, too.
Additionally, the company announced that Alexander Kwit, formerly the EVP of Royalty Pharma, joined the company’s board of directors.
“We are very pleased to have someone with Alex’s background and experience join the Neurelis Board of Directors,” Chambliss said. “His involvement will be extremely valuable as we navigate our path forward and build on our success to date.”