Chelsea Therapeutics, which took on a new name and a new headquarters last July, has raised $14.5 million in a private placement.
Chelsea was known as Aspen Therapeutics before it moved.
The financing is the newest in a series of moves for the firm, which filled out its management team in September with a series of hires.
Chelsea is developing drugs for treatments of arthritis, psoriasis and some cancers. It holds a patent on its lead candidate known as CH-1504.
The company said the $14.5 million included a $4.4 million over-allotment. Paramount BioCapital acted as Chelsea’s agent.
“The successful completion of this financing is a significant milestone enabling Chelsea to aggressively move forward with its clinical development plans for its proprietary lead product candidate, CH-1504,” said Simon Pedder, Chelsea’s president and CEO.
CH-1504 is an antifolate (a substance that blocks the activity of folic acid and are used to treat cancer) that is delivered orally. Chelsea believes its candidate is superior to another agent known as methotrexate that is used to treat rheumatoid arthritis, psoriasis and certain cancers.
The company said the funds would be used for additional research related to CH-1504. It also is developing other antifolates.