We advised neuroscience company NRG Therapeutics on its £50m Series B financing.
Stevenage-based NRG Therapeutics has developed a novel mechanism to target mitochondrial function that will slow or halt the progression of neurodegenerative diseases such as Parkinson’s and amyotrophic lateral sclerosis (ALS)/motor neurone disease (MND).
The oversubscribed funding round was led by SV Health Investors’ Dementia Discovery Fund, alongside other new investors British Business Bank, M Ventures, Novartis Venture Fund and Criteria Bio Ventures, together with existing investors Omega Funds and Brandon Capital.
NRG Therapeutics has identified a novel regulator of the mitochondrial permeability transition pore (mPTP), which is essential for pore opening and amenable to small molecule inhibition. This breakthrough has enabled NRG to develop a new class of small molecule mPTP inhibitors, which are designed to penetrate the brain effectively when taken orally.
The financing will enable NRG Therapeutics to achieve clinical proof of concept in ALS/ MND, while also generating meaningful clinical data in Parkinson’s patients through a Phase 1b study.
Mitochondria are crucial for energy production, especially in substantia nigra neurones (Parkinson’s) and motor neurones (ALS/MND), which have high energy demands and, consequently, are particularly sensitive to mitochondrial health. The pathological proteins in Parkinson’s (-synuclein) and ALS/MND (TDP-43) are toxic to mitochondria and contribute to mitochondrial dysfunction, which is a common underlying pathology in neurodegenerative diseases. Inhibition of mPTP opening has been shown to protect mitochondria from this gain-of-function protein toxicity and to preserve neurones in pre-clinical models.
NRG Therapeutics co-founder and CEO Neil Miller said: “I am delighted to welcome our new investors and thank our current investors for their unwavering support. Developing new drugs to treat neurological diseases is very challenging but is receiving increased interest given the high unmet medical need and growing prevalence in aging populations. These new funds provide the runway to advance our lead programme through PoC in ALS/MND, and to develop our portfolio of small molecule candidate drugs for other indications, including Parkinson’s, offering new hope to the growing number of people and their families impacted by neurodegenerative disorders.”
Zickie Lim, partner and head of venture capital investment at Mills & Reeve, advised NRG Therapeutics on its latest financing. In 2022, the team also advised the company on its £16 million Series A funding.
Zickie said: “We are thrilled to have advised NRG on its oversubscribed £50 million Series B financing, which represents another significant milestone for both the company and our team. NRG’s pioneering work in targeting mitochondrial dysfunction addresses one of the most fundamental drivers of neurodegeneration, with the potential to transform treatment options for people living with Parkinson’s and ALS/MND. Supporting this business from its earliest days, from start up through to this vital fundraising, has been an absolute privilege and underscores our ongoing commitment to helping early stage life sciences companies through their entire fundraising and growth journey and product lifecycle.”
The Mills & Reeve team, led by Zickie, included Rae Huizar and Bradley Greenwood on the corporate aspects, along with James Fry, head of life sciences, and James Field on intellectual property and commercial contracting matters.
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