PixarBio (OTC:PXRB) raised $7 million for its biomaterial-based opioid alternative for post-operative acute and chronic pain relief, about 18% of its $40 million equity financing according to a regulatory filing that the Medford, Mass.-based company filed yesterday.
The company’s drug delivery product, NeuroRelease, is an injectable morphine replacement therapy for use in the surgical/hospital setting, the battlefield, or to manage acute and chronic pain.
Unlike opioid pain relievers, NeuroRelease has no effect on locomotion nerve fibers so patients can enter physical therapy quickly following surgery. The drug also has no effect on proprioception, so the patient can maintain a feeling of well-being while taking the medication.
NeuroRelease is biodegradable and non-toxic, so it can be re-injected to extend treatment timelines, according to the company.
PixarBio’s pain platform includes formulations that range from 4-8 hours to 90 day treatments, with a hoped for FDA approval by 2020. The company expects approval in late 2018 for its 14 day post-surgical pain treatment. PixarBio claims it is the only company engaged with the FDA regarding a non-opiate, non-addictive morphine replacement therapy.
Early this month, PixarBio said it closed a sale of common shares and warrants in a private placement transaction resulting in expected proceeds of about $23.4 million plus a $10 million line of credit. The private placement memorandum closed $7.2 million in cash and warrants as exercised worth $16.2 million.
“Replacing morphine, and all opioids/opiates is one of the hottest spaces for pharma/biotech investment right now, so we were able to optimize a balanced investment portfolio for investors,” CEO Frank Reynolds said in prepared remarks. “I’ve been researching and developing non-opiate pain treatments for a couple decades and now my inventions are an overnight hit. NeuroRelease is the only non-opiate, non-addictive morphine replacement engaging the US FDA, that is not neuro-toxic, and it’s not cardio-toxic. NeuroRelease can be effective at fighting post-surgical pain for up to 14-days. I have predicted that in the future, our 14-Day post-surgical pain treatment will put struggling competitors with slowing year over year sales growth out of business within 36 months of NeuroRelease product launch.”