Kynexis, a clinical-stage biotechnology company developing treatments for cognitive problems linked to brain diseases, has raised €40 million in a Series A financing extension.
The latest funding brings Kynexis’ total Series A financing to €97 million ($110 million). The round was led by new investor Novartis Venture Fund, with existing investors Forbion, Ysios Capital and Sunstone Life Science Ventures also participating.
As part of the financing, Marianne Uteng of Novartis Venture Fund has joined the Kynexis Board of Directors. Mathias Frederiksen has also joined the company as a Board Observer.
Kynexis plans to use the new funding to complete its Phase 2 proof-of-concept study of KYN-5356, an investigational treatment being developed for cognitive impairment associated with schizophrenia (CIAS). The company will also use the financing to prepare for potential registrational clinical trials in CIAS and continue exploring the drug’s use in other cognitive disorders.
The company has already completed enrollment in its Phase 2 clinical trial and expects to report topline results by the end of 2026.
KYN-5356 is designed to improve cognitive function by targeting Kynurenine 3-monooxygenase (KAT-II), an enzyme involved in the kynurenine pathway. Kynexis believes its KAT-II inhibition approach could potentially help address cognitive dysfunction across several neurological and neurodegenerative diseases.
Schizophrenia can cause significant problems with memory, attention, learning and other areas of thinking. Cognitive impairment is an important part of the disease and can have a major effect on a person’s ability to work and manage everyday activities.
“We are pleased to welcome Novartis Venture Fund to our existing investor syndicate,” said Kees Been, CEO of Kynexis. He added that the funding will allow the company to continue developing KYN-5356 and prepare for registrational studies in cognitive impairment associated with schizophrenia.
Beyond schizophrenia, Kynexis is also exploring opportunities to apply its approach to other cognitive disorders, including Alzheimer’s disease. The company aims to develop treatments that could address cognitive symptoms across a range of neurological and neurodegenerative conditions.
Kynexis has also expanded its business development team. The company recently appointed Neil Swami as Chief Business Officer. Swami brings experience in corporate development to the role.
John McDonald, former Head of M&A at Novo and current Operating Partner of Business Development and M&A at Forbion, has also joined Kynexis as an advisor.
With the new financing, completed Phase 2 enrollment and preparations for later-stage development underway, Kynexis is moving toward a key clinical milestone for KYN-5356, with Phase 2 topline results expected later in 2026.