Sweden-based biotech developer Cinclus Pharma has closed a SEK250m ($26.4m) financing round that included Recipharm Venture Fund, the strategic investment vehicle for pharmaceutical research and production services provider Recipharm.
Government-owned pension investment vehicle Fourth Swedish National Pension Fund also took part in the round, as did private investors Bengt Julander and Jonas Sjögren.
Cinclus is developing a clinical-stage drug called X842 to treat gastro-oesophageal reflux disease (GERD), a digestive disorder that occurs when stomach acids are regurgitated into the oesophagus, the tube that rises into the throat.
X842 relies on potassium competitive acid-blockers first identified in pharmaceutical firm AstraZeneca’s research. The drug is designed to modulate the release of stomach acids while healing the mucous barrier that protects the oesophagus, known as the mucosal lining.
GERD is sometimes characterised by chronic heartburn but, with time, can severely corrode the oesophagus and increase the risk of oesophageal cancer.
The funding will go to supporting the company’s operating costs and a phase 2 clinical study due to begin in the second half of 2020. Proceeds will also help prepare for planned phase 3 testing, as Cinclus aims for an initial public offering preliminarily expected in 2021.
Cinclus had previously raised approximately $3m in April 2019 from Recipharm Venture Fund and undisclosed biotech and healthcare-focused investors from Sweden.
The 2019 round included $1m from an earlier debt round converted into equity shares. Bengt Julander and Jonas Sjögren both participated in the latest transaction as existing investors.
Image courtesy of Cinclus Pharma.