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Neuron23 closes USD 113.5 million series A and B financing

Neuron23 Closes USD 113.5 Million Series A and B Financing

Martinsried-based Origenis GmbH has announced the formation and funding of South San Francisco biotech company Neuron23 Inc. Neuron23 was launched through a partnership with biotechnology company Origenis with venture capitalist Kleiner Perkins (KPCB) October 2018.

With the successful Series A and B financing totaling USD 113.5 million, Neuron23 Inc. will focus on clinical development of precision medicines for genetically defined neurological and immunological diseases. Since its founding, Origenis and Neuron23 have been working together under radar but at full speed to prepare for entry into clinical phases. In December 2020, the founding and funding of Neuron23 was publicly announced.

Series A funding of USD 33.5 million is led by Westlake Village BioPartners and Kleiner Perkins. The Series B financing of USD 80 million is led by Redmile Group. Other Series B investors included Westlake Village BioPartners, Kleiner Perkins, Cowen Healthcare Investments, Acorn Bioventures, HBM Partners, Perceptive Advisors and Surveyor Capital.

According to Origenis, it plans to launch other new companies along the model of Neuron23. Programs advanced enough will be spun out as start-ups to fund preclinical and clinical development with strategic investors, through IPOs or pharma partnerships. Origenis develops IP-protected chemical entities that can cross the blood-brain barrier with particular expertise in drug design, synthesis and characterization.

"With Neuron23 Inc. we have established an excellent basis to preclinically and clinically develop programs selected and optimized by us in the field of neurodegeneration and neuroinflammation. The most advanced of these are the two lead programs against Leucine-Rich Repeat Kinase 2 (LRRK2), a gene associated with Parkinson's disease, and against Tyrosine Kinase 2 (TYK2), a protein of the JAK family that plays an essential role in the immune response of inflammatory diseases in the body and also in the brain," explained Michael Almstetter, CEO of Origenis. "Separating technology development and clinical development into two different companies is the basic idea of Origenis' business concept. Applying this here was very important to us, as risk and capital requirements are very different in these areas. As a shareholder in Neuron23, Origenis naturally participates in Neuron23's success."

"Our integrated Origenis AI technology platform delivers highly optimized compounds for new targets for challenging indications, which is impressively confirmed by this investment," added Dr. Michael Thormann, CSO of Origenis. "We are already developing the next portfolios of novel small molecule compounds for additional challenging therapeutic indications, and are confident to multiply this business model in the near future."


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