Novaremed Secures US $50 Million

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29.01.2021
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Novaremed, a clinical-stage Swiss biopharmaceutical company, has signed an agreement with GEM Global Yield LLC SCS (GEM), a Luxembourg-based private, alternative investment group for a US $50 million capital commitment.

Under the agreement, GEM commits to provide Novaremed with a share subscription facility of up to US $50 million for a 36-month term following the public listing of the company’s shares. Novaremed will control the timing and maximum amount of drawdown under this facility and has no minimum drawdown obligation. Concurrent with a public listing of Novaremed shares, the company will issue warrants to GEM to purchase shares of Novaremed.

Subject to the funding becoming available, the proceeds from this financing will be used to progress the clinical development of Novaremed’s lead product, NRD135S.E1, an investigational non-opioid small molecule drug for the treatment of painful diabetic peripheral neuropathy (PDPN).

“We are very pleased about this financial arrangement with GEM,” said Isaac Kobrin, M.D., Executive Chairman of the Board of Novaremed. “This funding agreement with GEM will help us, upon the company’s public listing, to advance our highly innovative lead product that we are developing for the non-opioid treatment of patients affected by diabetes-related chronic neuropathic pain. The ongoing opioid crisis has increased the high unmet medical need for novel treatments, which can control chronic pain without inducing addiction, dependence and abuse.”

Frequent complication of diabetes

Peripheral nerve injury from various etiologies (e.g., diabetic peripheral neuropathy, postherpetic neuralgia, neuropathy due to cancer or trauma) may result in chronic and severe intractable neuropathic pain. PDPN is one of the most frequent complications of diabetes.

NRD135S.E1 (or NRD.E1) is a new chemical entity, that is orally available and being developed for the treatment of PDPN. The mechanism of action of NRD.E1 is different to that of approved pain therapies as the investigational drug does not bind to or interact with receptors associated with pain nor does it bind to opioid receptors.

Completed clinical studies with NRD.E1 include three Phase I studies. The Phase IIa Proof of Concept study in 88 patients with moderate to severe PDPN. Results showed a clinically relevant, dose-related pain reduction; NRD.E1 was well tolerated at all tested doses. In December 2020, the U.S. Food and Drug Administration (FDA) granted Fast Track Designation to NRD.E1 for the treatment of PDPN.

(Press release / SK)

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