Neurosterix has raised $105 million in Series B financing to advance its experimental treatments for schizophrenia and other neuropsychiatric disorders. The funding will primarily support the development of its lead drug candidate, NTX-253, as the company prepares to move the programme into Phase 2 clinical trials.
The financing was led by RTW Investments, with participation from new investors Janus Henderson Investors, GV, Ikarian Capital, Affinity Asset Advisors and Dellora Investments. Existing investors Perceptive Advisors and Acorn Bioventures also joined the funding round.
Alongside the financing, Neurosterix announced several leadership appointments to strengthen its drug development capabilities. Andrew Miller, founder of Karuna Therapeutics, has been appointed Executive Chair of the Board. Edmund Harrigan has joined the Board of Directors as an independent director, while Stephen Brannan has been appointed Chair of the Clinical Advisory Board.
All three executives bring significant experience in developing treatments for neuropsychiatric conditions, including schizophrenia.
Funding to Advance NTX-253
The main focus of the new funding is NTX-253, an oral investigational drug designed to treat schizophrenia by targeting the muscarinic M4 receptor in the brain.
NTX-253 is a positive allosteric modulator (PAM) that works by adjusting the activity of the M4 receptor rather than directly switching it on or off. This approach aims to regulate brain signalling involved in psychosis and potentially reduce symptoms while avoiding some of the side effects associated with traditional antipsychotic medicines.
The company has already completed Phase 1 single- and multiple-ascending-dose clinical studies of NTX-253. The results support its planned progression into Phase 2 clinical development.
Schizophrenia is a serious mental health condition that affects how people think, feel and behave. Existing treatments mainly work by targeting dopamine pathways in the brain, but some patients experience limited benefits or side effects such as movement disorders and metabolic problems.
NTX-253 is being developed as a potential alternative approach that targets the muscarinic system to help manage the condition.
Experienced Leadership Joins the Company
Andrew Miller previously founded Karuna Therapeutics and served as its President of Research and Development. He was a key contributor to the development of KarXT, now marketed by Bristol Myers Squibb as COBENFY, which introduced a new muscarinic-based treatment approach for schizophrenia.
Edmund Harrigan brings experience in pharmaceutical research and development, while Stephen Brannan has extensive experience in clinical development and neuropsychiatric drug research.
The appointments are expected to support Neurosterix as it moves its clinical programmes forward and expands its research pipeline.
Fred Callori, CEO of Neurosterix, said the financing and leadership additions would provide the company with the resources and expertise needed to advance NTX-253 and develop new treatments for serious neuropsychiatric conditions.
Expanding the Neuropsychiatric Drug Pipeline
Beyond NTX-253, Neurosterix is developing additional drug candidates targeting different brain signalling pathways.
Its pipeline includes NTX-819, an investigational mGlu7 negative allosteric modulator being developed for mood and anxiety disorders. The company is also working on NTX-529, another M4 positive allosteric modulator intended for additional psychosis- and mood-related conditions.
Neurosterix is focused on developing selective allosteric modulators, which are designed to fine-tune specific receptor activity and potentially offer more targeted treatment effects.
The latest $105 million financing marks an important step in the company’s development as it prepares to advance its lead programme into mid-stage clinical testing.
With new investment and experienced leadership, Neurosterix aims to strengthen its position in the growing field of muscarinic-based treatments for schizophrenia and other neuropsychiatric disorders.