Functional Neuromodulation Inc., (FNMI) a Toronto start-up medical technology company today announced the closing of a $600,000 seed financing from Genesys Capital of Toronto. FNMI was established in early 2010 to develop novel Deep Brain Stimulation (DBS) therapies for Alzheimer?s disease (AD) and Mild Cognitive Impairment (MCI).
Dr. Andres Lozano, R.R. Tasker Chair in Stereotactic and Functional Neurosurgery at the University Health Network and University of Toronto, originated the concept of treating memory disorders using DBS. Dr. Lozano is the scientific founder of FNMI and principal inventor of the Company’s intellectual property which initially includes five patent applications relating to treating Memory and Cognitive disorders including AD and MCI using DBS. Dr. Lozano and colleagues at Toronto Western Hospital recently completed a Phase I pilot clinical study of DBS in AD patients. The results from this study were published in the September 2010 issue of Annals of Neurology.
Alzheimer’s is a devastating disease for which there is no cure. DBS has been used successfully to treat tens of thousands of Parkinson?s patients and is an emerging therapy for Epilepsy and Depression. We believe DBS represents a potentially important new approach to addressing the growing unmet need to treat AD,? commented Genesys partner Kelly Holman. “We view the seed financing as a first-step toward building an innovative, cognition-focused DBS company.” Mr. Holman has joined Dr. Lozano and Daniel O’Connell, co-founder and Chief Executive Officer, on FNMI’s board of directors.
Mr. O’Connell commented on the financing. “Genesys has a successful track record in early stage life science investing. Dr. Lozano and I are pleased to have the firm’s support and their willingness to contribute directly to FNMI’s development. Securing the seed financing and the intellectual property rights sets FNMI on course to close a Series A financing next year.” With the closing of a Series A financing, the Company’s primary objective will be to demonstrate clinical proof of concept in a Phase II trial of DBS in AD patients.
About Alzheimer’s disease
Alzheimer’s, the most common form of dementia, is a progressive debilitating disease that ultimately results in death. Today, an estimated 5.2 million North Americans suffer from Alzheimer’s, which carries annual direct and indirect costs exceeding $150 billion. The 2009 World Alzheimer Report, estimates that the global prevalence of dementia, predicted as more than 35 million in 2010, will almost double every 20 years to 65.7 million in 2030 and 115.4 million in 2050. The economic cost of dementia across the globe is estimated at $315 billion annually.
About Deep Brain Stimulation
Deep brain stimulation (DBS) is a surgical treatment involving the implantation of a medical device called a brain pacemaker, which sends electrical impulses to specific parts of the brain. DBS in select brain regions has provided remarkable therapeutic benefits for otherwise treatment-resistant movement disorders including Parkinson’s disease, tremor and dystonia. DBS directly changes brain activity in a controlled manner, its’ effects are reversible and it is one of only a few neurosurgical methods that allows for blinded studies. The Food and Drug Administration (FDA) approved DBS as a treatment for essential tremor in 1997, for Parkinson’s disease in 2002, and dystonia in 2003. DBS is also under investigation for the treatment of Epilepsy and treatment resistant major depression. To date, DBS has been used to treat more than 80,000 people worldwide.
About Genesys Capital
Genesys Capital is focused on building companies in the high-growth sectors of healthcare and biotechnology. Through its expertise and industry network, Genesys accelerates the development of commercially viable emerging companies that represent promising biotechnology investment opportunities. Genesys is one of the largest Canadian-based venture capital firms exclusively focused on the life sciences industry.
About Functional Neuromodulation, Inc.
Functional Neuromodulation Inc. is a start-up medical technology company focused on advancing innovative neuromodulation technologies for the treatment of cognitive and memory disorders.