Swiss biotech company Neurosterix has banked $105m in a Series B funding round to push its range of neuropsychiatric candidates further down the pipeline.
The financing, which was led by RTW Investments and contributed to by Janus Henderson Investors, GV and Acorn Bioventures – among others – will see Neurosterix progress its range of selective allosteric modulators across various psychiatric conditions.
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The jewel in Neurosterix’s crown is its lead asset, NTX-253 – a brain-penetrant selective muscarinic M4 positive allosteric modulator currently in clinical development for schizophrenia. According to the company, indirectly influencing the behaviour of a receptor through allosteric modulation, instead of actively blocking or activating it, can help create differentiated medicines that have a more precise effect.
With money in the bank, Neurosterix will now progress NTX-253 to Phase II, as the drug has already displayed its potential to act as a once-daily oral treatment in a Phase I single and multiple ascending dose clinical study.
The biotech sets plans in motion for NTX-253’s debut as Bristol Myers Squibb’s (BMS’s) selective M1 and M4 agonist, Cobenfy (xanomeline and trospium chloride), has started to see increasing clinical uptake in schizophrenia following its US approval in 2024. However, Cobenfy’s launch has had a slow start, with some physicians remaining tentative about prescribing it, while issues with access for American patients via insurance persist.
Beyond NTX-253, the biotech also has plans for its earlier-stage pipeline, with the company using some of the cash from this raise to progress two other earlier-stage candidates. This includes NTX-819, a metabotropic glutamate receptor 7 (mGlu7)-targeting drug currently in development for mood and anxiety disorders, as well as NTX-529, a second M4-directed therapy, for psychosis and mood-related conditions.
To help it achieve its goals, Neurosterix is also bolstering its leadership team with a star-studded trio. This will see Andrew Miller and Stephen Brannan, ex-executives at Cobenfy developer and BMS subsidiary, Karuna Therapeutics, join the team – bringing their expertise in neuropsychiatry and muscarinic drugs to the table.
On top of this, board-certified neurologist and ex-Pfizer leadership member, Endmund Harrigan, will also come on board, bringing his expertise in pharmaceutical development and board leadership.
According to Miller, muscarinic therapies represent an “important new chapter” in the schizophrenia treatment paradigm, as companies increasingly explore mechanisms outside of the traditional dopamine-based approach.
“I believe Neurosterix’s highly selective approach to M4 modulation has the opportunity to be an important next-generation muscarinic treatment building on promising early clinical findings,” Miller concluded.
