Aerial BioPharma, a biotech startup backed by Rex Health Ventures and other investors, has raised another $4 million in its drive to attract a total of $12 million Series A financing.
Aerial disclosed the latest tranche Wednesday. The first close was announced in October.
The final tranche will close in the fourth quarter, the company says.
Funding is being used on a Phase 2B clinical trial of its lead product which targets narcolepsy.
“In addition to allowing us to advance our promising treatment for narcolepsy to Phase 3, the funding will be used to finish the IND [investigational new drug application] enabling studies required for our novel biologic product, prostatic acid phosphatase (PAP), which represents a completely new approach to the treatment of acute and chronic pain” said Moise Khayrallah, Aerial’s chief executive officer.
Aerial said it plans to file the IND for PAP by the end of 2013.
According to an SEC filing, Aerial closed on $5.67 million from 23 investors as of Oct. 11.
Aerial recently received orphan drug designation for its narcolepsy drug in development.
Rex Health Ventures announced an investment in Aerial last July.
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 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.
