A group of investors has plowed more than $30 million into a company developing medicines for neurological diseases.
Accelerator Life Science Partners said Monday that it had launched Magnolia Neurosciences Corp., co-founded by Accelerator itself and The University of Texas MD Anderson Cancer Center in Houston. As part of the launch, the company has raised $31 million in a Series A funding round. Participating investors include AbbVie Ventures, Alexandria Venture Investments, ARCH Venture Partners, Eli Lilly & Co., Innovate NY Fund, Johnson & Johnson Innovation – JJDC, Inc., the Partnership Fund for New York City, Pfizer Ventures, Watson Fund, WuXi AppTec’s Corporate Venture Fund and 180 Degree Capital Corp. Accelerator has locations in New York, San Diego and Seattle.
The company will focus its efforts on neurodegenerative diseases and neuronal injury. In particular, it pointed to research indicating that programmed cell death – the means by which excess neurons are eliminated during embryonic development – is reactivated in critical regions of the brain among people with Alzheimer’s disease and other neurological conditions. In animal models, blocking components of the process preserves brain tissue and enhances memory, suggesting that drugs to target them could maintain neural function.
“The potential market for neuroprotective therapies is large and underserved, and we believe that Magnolia Neurosciences has the technology, intellectual property and scientific expertise to become a leader in the field,” said Thong Le, who serves as CEO of Magnolia and Accelerator, in a statement. “In launching Magnolia Neurosciences, we are pleased to be a catalyst for innovation that could improve the care and outcomes for millions of patients.”
To date, the predominant hypothesis – and basis for drug development – in Alzheimer’s disease has centered on amyloid. According to the hypothesis, the protein beta-amyloid accumulates in the brain and disrupts communication cells and eventually killing them, according to the Alzheimer’s Association. Last month, Biogen and Eisai announced results of an 856-patient Phase II study of BAN2401, a beta-amyloid-targeting monoclonal antibody, in early Alzheimer’s disease that the companies called positive, but that also generated disagreement among observers due to challenges in measuring cognitive function in the disease’s early stages, among other factors.
Meanwhile, in May, South San Francisco, California-based Cortexyme closed a $76 million Series B financing round to help fund its development of medicines that target what the company calls a potential bacterial role in the development of the disease. Another company, Ness-Ziona, Israel-based Regenera Pharma, is investigating a drug derived from mastic tree resin to determine whether it can reduce cognitive decline in patients.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
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