Los Angeles, California-based CarthroniX, Inc., a startup biopharmaceutical company developing small molecule-based therapies for cartilage diseases, has announced the completion of a $2.25 million convertible note offering.
CarthroniX will use the financing to support the final stages of pre-clinical development of CX-011. CX-011 is a “small molecule injectable therapeutic” which was “designed to halt or reverse the progression of mild-to-moderate knee osteoarthritis.”
CX-011 is a “small molecule modulator of gp130, the cell surface receptor responsible for mediating signaling by all members of the interleukin-6 (IL-6) cytokine family.” According to the company, they pioneered the concept of “signal modulation, allowing for regenerative outputs, while dampening chronic inflammation.”
Early next year, CarthroniX plans to seek approval of a “Phase 1/2a randomized controlled study of CX-011” by filing an investigational new drug application with the U.S. Food and Drug Administration (FDA).
Earlier this year, Hassan Serhan, Ph.D. became the CEO of CarthroniX. Dr. Serhan stated, “Modulation of gp130 via small molecules like CX-011 allows CarthroniX to uniquely harness the regenerative power of inflammation.”
Dr. Serhan continued, “Our data demonstrate this approach has major promise for not only joint degeneration, but also fibrotic indications such as idiopathic pulmonary fibrosis.”
Existing investors joined the financing that was led by Parsippany, New Jersey-based Pacira BioSciences, Inc. Upon the completion of regulatory milestones, the investor group will have the option to make an additional investment.
Pacira BioSciences Senior Vice President of Corporate Strategy and Business Development Ron Ellis, D.O. said, “We are excited to work with CarthroniX as they share our commitment to offering non-opioid pain relief and improving the continuum of care for patients affected by osteoarthritis.”
Dr. Ellis continued, “More importantly, this investment advances our mission to provide innovative non-opioid solutions to manage joint pain and potentially address the root cause.”
