Neurogastrx Bags $45M, a New CEO and a HQ Move to the Greater Boston Area

Neurogastrx closed on a Series A financing worth $45 million. It was co-led by 5AM Ventures, OrbiMed Advisors and venBio Partners.

The funds will be used to build its management team and work on proof of concept for its lead asset, NG-101 for gastroparesis. Gastroparesis affects the normal movement of muscles in the stomach, usually slowing it down or not working at all. This causes delays in gastric emptying, which can lead to nausea, vomiting, early satiety, abdominal pain and bloating.

“The constellation of symptoms from which these patients suffer all originate from the gut-brain axis, the pathway by which the enteric nervous system communicates with the brain,” said Cyril De Colle, Neurogastrx’ founder and chief scientific officer, in a statement. “NG-101 modulates receptors within this pathway, which we believe will improve these symptoms.”

NG101 is a selective and peripherally restricted dopamine D2/D3 receptor antagonist. It doesn’t cross the blood-brain barrier and does not alter cardiac rhythm. This suggests it may have a good safety and tolerability profile compared to other D2 antagonists.

As part of the financing, Jim O’Mara was appointed chief executive officer. He was one of the original Linzess team members at Ironwood Pharmaceuticals, where he was senior vice president of Corporate Development. Klaus Veitinger, Venture Partner at OrbiMed Advisors will become chairman of the board. David Allison of 5AM Ventures, Aaron Royston of venBio and Kevin Koch will also join the board.

Cyril De Colle was vice president of Neuroscience at KineMed. Before that, he managed clinical stage programs at Jazz Pharmaceuticals. He was also a senior research scientist at Amgen and Roche Pharmaceuticals.

“This is an incredible opportunity for us to drive our lead asset to proof of concept without the distraction of having to raise additional funds,” O’Mara said in a statement. “Our sole focus is on creating a robust data package to validate the utility of NG-101.”

Broadly, the company is focused on the Enteric Nervous System (ENS), sometimes referred to as the “second brain.” This network of neurons is found in the wall of the bowels and has molecular and morphologic similarities with the central nervous system (CNS) and the peripheral nervous system (PNS). Many of the major neurotransmitters, receptors and transporters seen in the CNS and PNS are also present in the ENS. It is linked to the nervous system, but operates independently of the brain and spinal cord.

Gastroparesis can be caused by a number of different things. Many are not identified, but most cases are secondary to diabetes mellitus. About 20 percent of patients with diabetes have upper GI symptoms, and there is currently on adequate treatment for the nausea and vomiting linked with gastroparesis. Hospitalization is often required for moderate-to-severe cases.

In the U.S., the only approved therapy is Reglan (metoclopramide), but it has a black box warning due to CNS toxicities that limit its use to 12 weeks.

Neurogastrx was initially headquartered in Campbell, California, but is moving its base to Boston.