China-based neurobiology research and development company XWPharma has raised $40m in a series C round featuring pharmaceutical firms Johnson & Johnson and WuXi AppTec.
Panacea Venture led the round, which included CDIB Yida Healthcare Fund, Hontai Capital, KTB Network, Trinity Fund and WI Harper Group. The corporates invested through respective subsidiaries Johnson & Johnson Innovation – JJDC and Corporate Venture Fund.
Founded in 2014 as XW Laboratories, XWPharma is developing drugs focused on neurological diseases including sleep dysfunction and neuropsychiatric disorders.
The company will use the cash to progress in clinical development for its drug candidates XW10172, which treats sleep problems encountered in neurodegenerative diseases such as narcolepsy and Parkinson’s disease, and XW10508, which alleviates chronic pain for patients with depression.
Johnson & Johnson Innovation – JJDC and WuXi Ventures had participated in XWPharma’s $17.5m series B round in 2017, which was co-led by WI Harper and Elements Capital. Kleiner Perkins Caufield & Byers (KPCB) China and KTB Network filled out the investors.
KPCB China led the series A round closed in 2014, which also featured Johnson & Johnson Innovation – JJDC and WuXi Ventures.
In tandem with the latest deal, XWPharma has named Leonard Blum president and chief executive, replacing founder and chairman Jia-Ning Xiang, who has been appointed chief scientific officer.
Xiang said: “Leonard has extensive experience in successfully developing and commercialising best-in-class therapeutics to achieve market leadership and in leading global biopharmaceutical organisations.
“We are thrilled to have him join us as we expand our company footprint in the US and plan to rapidly advance our transformative therapeutics through development, registration and launch.”
