July 21, 2020 08:00 ET | Source: Gain Therapeutics
Financing intended to accelerate IND-enabling studies of allosteric drug candidates for rare
genetic and neurodegenerative diseases, expand pipeline and support business development
Eric I Richman appointed CEO and Director
BETHESDA, Md., July 21, 2020 (GLOBE NEWSWIRE) -- Gain Therapeutics, Inc., (“Gain”) a biotechnology company focused on developing first-in-class medicines that target novel allosteric binding sites on enzymes for the treatment of rare genetic and CNS diseases, today announced that it has raised $10 million in a Series B financing with institutional and accredited investors. Proceeds from the financing will be used to complete IND-enabling studies for the company’s two lead development programs and fund the advancement of additional pipeline candidates. Concurrent with the close of the Series B financing, Gain, completed a share exchange with Gain Therapeutics, SA., a Swiss corporation, whereby GT Gain Therapeutics SA became a wholly owned subsidiary of Gain, and Eric I. Richman was appointed as Gain’s Chief Executive Officer and a member of the Company’s Board of Directors.
“Our proprietary and patented platform offers the ability to discover and validate previously unidentified non-classical binding sites on enzymes that can be regulated by our novel first-in-class drug candidates to restore (or gain) enzyme function in rare and devastating genetic diseases,” said Khalid Islam, Ph.D., Founder and Chairman of Gain. “Our pipeline consists of small molecule compounds designed to access difficult to reach tissues including bone, cartilage and the central nervous system, and consequently could provide new options to address diseases which result in high morbidity and mortality and where no therapy exists today. We are pleased to welcome Eric Richman as CEO. Eric brings extensive experience in leading biotech innovation from early stage research though commercialization of therapies.”
Dr. Islam serves on the board of Immunomedics (IMMU), Fennec Pharma (FENC) and other private and public biotech companies.
Mr. Richman commented, “I am pleased to join Gain at such a pivotal time for the company, as we emerge out of stealth mode and close an institutionally-backed financing round that will enable us to accelerate our programs in lysosomal storage disorders and central nervous system diseases caused by misfolded proteins. Our unique technology platform offers the ability to address major unmet medical needs using a new approach that can address previously untreatable diseases. We look forward to using these funds to advance our current drug candidates, work to discover additional novel drug targets utilizing our proprietary SEE-Tx™ platform and begin to develop strategic initiatives to expand our business.”
Mr. Richman is a former Venture Partner at Brace Pharma Capital, has previously served as President and CEO of PharmAthene, Inc and was a part of the founding team at MedImmune. Mr. Richman also currently serves as a Director on the boards of both NeuBase Therapeutics, Inc. (NBSE) and LabConnect, Inc.
Tribal Capital Markets, LLC acted as sole placement agent for the offering. Allele Capital Partners, LLC at Tribal Capital Markets, LLC was responsible for sourcing, investing and executing the $10 million offering.
About Gain Therapeutics, Inc.
Headquartered in Bethesda, MD, Gain Therapeutics Inc. is a biotechnology company focused on the discovery and development of new chemical entities for the treatment of rare genetic and neurogenerative diseases. Gain’s patented and proprietary computational SEE-Tx™ platform identifies and validates non-classical, or allosteric binding sites on enzymes and other proteins, and aids in the discovery of compounds that can regulate these sites in order to restore protein function. This new approach has the potential to make previously undruggable targets druggable, with the benefit of small molecule compounds that can access certain tissues such as bone, muscle, and the brain to treat the downstream symptoms associated with diseases caused by misfolded proteins. Gain Therapeutics, SA was originally established in Switzerland in 2017 with the support of its founders and institutional investors such as TiVenture, 3B Future Health Fund (previously known as Helsinn Investment Fund) and VitaTech and has been awarded funding support from The Michael J. Fox Foundation for Parkinson’s Research (MJFF) and The Silverstein Foundation for Parkinson’s with GBA and from the Eurostars-2 joint program with co-funding from the European Union Horizon 2020 research and Innosuisse.
LifeSci Advisors, LLC
Cait Williamson, Ph.D.
LifeSci Communications, LLC
Any statements in this release that are not historical facts may be considered to be “forward-looking statements.” Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties which may cause results to differ materially and adversely from the statements contained herein. Such statements include, but are not limited to, statements regarding Gain Therapeutics, Inc. (Gain) expected use of the proceeds from the Series B financing round; the market opportunity for Gain’s product candidates; and the business strategies and development plans of Gain. Some of the potential risks and uncertainties that could cause actual results to differ from those predicted include Gain’s ability to: make commercially available its products and technologies in a timely manner or at all; enter into other strategic alliances, including arrangements for the development and distribution of its products; obtain intellectual property protection for its assets; accurately estimate its expenses and cash burn and raise additional funds when necessary. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, Gain does not undertake any obligation to update any forward-looking statements to reflect new information, events or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.