The funding will be used to advance clinical development of its lead asset, a treatment for loculated pleural effusions, which is a serious complication of pneumonia.
Austin, Texas-based Lung Therapeutics raised $36 million in a Series C financing round to support the development of its Phase II asset for the treatment of loculated pleural effusions (LPE) a serious complication of pneumonia.
The Series C financing gives the company a total of $53 million from outside investors. In addition to advancing its Phase II treatment, the company said it will also use some of the proceeds to support a Phase I clinical trial for another asset, LTI-03, for the treatment of idiopathic pulmonary fibrosis (IPF).
LPE can occur following a case of pneumonia. Fluid fills the pleural cavity, which is between the lungs and the lung lining. Surgery has been a standard of care but there are many risks associated with the procedure. LTI-01, the company’s lead asset, is based on a proenzyme, or zymogen, the primary active ingredient. The proenzyme slowly activates in the pleural space surrounding the lungs. Some of the early research around the asset has shown that the compound clears scar tissue and promotes fluid draining from around the lung. In studies to date, LTI-01 has been shown to be both safe and effective, the company said. LTI-01 has completed a Phase I, dose escalation clinical trial, in 14 LPE patients. LTI-01 appeared to be well tolerated by patients and demonstrated evidence of LPE resolution. LTI-01 has received Orphan Drug designation from the U.S. Food and Drug Administration, as well as the European Commission.
“LTI-01 not only has the potential to be the first and only approved drug for Loculated Pleural Effusions but also the potential to significantly reduce hospital stays, hospital costs and materially improve quality of life for patients,” Aaron Fletcher, a Lung Therapeutics board member and partner at Bios Partners, a supporter of the Series C funding.
IPF is a chronic lung disease with progressive scarring in the lungs from unknown causes. It’s a fatal disease, with about 80 percent of patients dying within five years. In preclinical studies, has demonstrated anti-fibrotic activity in multiple models of fibrosis, including scleroderma, kidney and cardiac, as well as the ability to protect healthy lung cells.
In addition to supporting the clinical programs, Lung Therapeutics said the funding will finance the next stage of growth at the company. Bios Partners was the only supporter of the Series C funding round that Lung Therapeutics disclosed in its announcement. In 2017, the company announced it had raised $14.3 million in a Series B financing round.
“We are extremely thankful for the strong reception and support we have received from both our existing and new institutional investors. Both LTI-01 and LTI-03 show great promise to becoming new and beneficial therapeutic drugs for doctors and patients worldwide,” Brian Windsor, chief executive officer of Lung Therapeutics said in a statement. “This financing will allow us to complete the first and only Phase II clinical trial in patients with Loculated Pleural Effusions, as well as a healthy volunteer Phase I clinical trial for our second product candidate, LTI-03, which is in development for IPF patients.”
