Biotech startup Eliem Therapeutics closes $60m Series B financing

Eliem Therapeutics, a clinical-stage biotechnology company focused on developing novel therapies for neuronal excitability disorders to address unmet needs in disorders of the peripheral and central nervous systems, announced the closing of a $60 million Series B financing.

The financing round was led by Intermediate Capital Group (ICG) and RA Capital Management and included participation from Access Biotechnology, Samlyn Capital, Acorn Bioventures and LifeArc. Eliem plans to use the proceeds to advance its two lead clinical-stage product candidates, ETX-810 and ETX-155, through topline data across four different indications in patients with chronic pain, depressive disorders, and epilepsy, as well as to advance its two preclinical-stage programs to selection of clinical development candidates.

Bob Azelby, President and Chief Executive Officer, Eliem Therapeutics: "We are excited to have the continued support of our investment group, and we welcome our new investors to this latest financing round. This financing builds upon $80 million of prior funding, allowing for the advancement of our mission to develop life-changing therapies for debilitating neuronal excitability disorders.  These disorders impact tens of millions of people worldwide and represent large commercial market opportunities.  With this capital, we will continue to execute our strategy to develop differentiated small molecule new chemical entities, based on clinically validated mechanisms of action with well-established clinical and regulatory endpoints."  

Simon Tate, Managing Director, ICG: "We are delighted to lead this funding round; Eliem Therapeutics is a truly exciting company and our investment reflects the overwhelming confidence we have in the team and its differentiated pipeline of clinical assets."

Eliem is currently evaluating ETX-810, an investigational novel prodrug of the bioactive lipid palmitoylethanolamide, in two Phase 2a clinical trials in patients with diabetic peripheral neuropathic pain and lumbosacral radicular pain, with topline data expected in the first half of 2022. For its second lead product candidate, ETX-155, an investigational novel GABA_A receptor positive allosteric modulator, Eliem plans to initiate two Phase 2a clinical trials, in patients with major depressive disorder and hormone-related depressive disorders, which are expected to report topline data in the second half of 2022 and the first half of 2023, respectively. 

In addition, for ETX-155, Eliem intends to initiate a Phase 1 billion clinical trial in patients with photosensitive epilepsy, that is expected to report topline data by the first half of 2022.  Eliem is also progressing two preclinical programs currently in the advanced discovery stage: a novel Kv7.2/3 potassium channel opener for the potential treatment of pain and epilepsy, and a novel 2,3-benzodiazepine anxiolytic for the potential treatment of generalized anxiety disorder and depression.

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