Aerial BioPharma, a biotech startup backed by Rex Health Ventures, has raised $5.67 million in new funding and wants another $6 million.
According to an SEC filing, Aerial closed on $5.67 million from 23 investors as of Oct. 11.
The company aims to raise a total of $12 million.
Aerial recently received orphan drug designation for its narcolepsy drug in development.
Rex Health Ventures announced an investment in Aerial in July.
The U.S. Food and Drug Administration (FDA) Office of Orphan Products Development recently granted orphan designation for ARL-N05 for the treatment of narcolepsy.
In the United States, the prevalence of narcolepsy is estimated to be less than 200,000, qualifying as an orphan disease.
The narcolepsy treatment began a Phase IIb clinical trial in September with results expected in mid-2013.
Aerial, which launched a year ago, completed the first tranche of $12 million in equity financing in April.
In addition to completing the Phase IIb study for N05, the company has said it will use the funding to further its early stage biologic licensed from UNC Chapel Hill that is being developed for the treatment of acute and chronic pain.
Aerial is the third company from the management team led by Dr. Moise Khayrallah, all privately held and located in RTP. Previously, the team founded Addrenex Pharmaceuticals, which was acquired by Shionogi Pharma in November 2009.
In February 2012, the team’s second company, Neuronex, announced the signing of a merger agreement with Acorda Therapeutics.
