US-based neurological and oncologic disease drug developer Cavion has secured $26.1m in a funding round co-led by subsidiaries of pharmaceutical companies Eli Lilly and Novartis.
Lilly Ventures and Novartis Venture Fund co-led the round with venture capital firm Enso Ventures, while additional funds were provided by unnamed existing investors.
Cavion is developing therapeutics that will treat neurological and oncologic diseases by modulating the body’s T-type calcium channel (Cav3).
The company intends to initiate a proof-of-concept phase 2 study of a Cav3 inhibitor called CX-8998 for a movement disorder called essential tremor later this year, and is working on additional Cav3 inhibitors for use in other therapeutic areas.
Cavion raised $5m from undisclosed new and existing investors in a private placement of convertible notes in late 2015, bringing its total financing to more than $18m from private investors, together with $15m in non-dilutive resources.
Andrew Krouse, president and chief executive of Cavion, said: “We welcome the backing of Novartis Venture Fund, Lilly Ventures and Enso.
“They bring a superior track record of success stemming from their deep pharmaceutical industry experience and understanding of the biotech marketplace.”
Lilly Ventures general partner Steven Hall, Novartis Venture Fund vice-president Henry Skinner and Sergei Petukhov, a partner at Enso Ventures, have joined Cavion’s board of directors in conjunction with the financing.