CALYXHA seeking EUR 5m in Series A funding by mid-2021; aims to lock in several global partnerships for tissue degeneration product, says CEO

CALYXHA Biotechnologies is seeking EUR 5m in Series A funding from venture capitalists and family offices by mid-2021 for the ongoing preclinical development of its small molecule, CAL-X, which targets tissue degeneration, said CEO Eszter Nagy. The company also aims to lock in several global development and marketing partnerships by early 2021, added Nagy. 

The funding would be used for the development of CAL-X’s preclinical characterisation phase in chronic and acute inflammation, neurodegenerative diseases and tissue degenerative diseases associated with ageing, said Nagy. The raised funds will also allow for the progression of CAL-X into a Phase I trial, she added. The Series A will offer a minority stake and the company is not seeking financial advisors or banking assistance, Nagy said. 

The Austria-based company has secured seed funding from investors, including KINLED Holding, Olipan Investments, the Blom Family Office and LifeLink Ventures, according to a 4 March company press release. The company also received funds from an Austrian venture capital film, ARAX Capital Partners, according to the abovementioned company press release. The company may seek funding again from the previous investors, Nagy said. Calyxha is also receiving a long-term COVID-19 loan from the Austrian government, which is a loan for pharmaceutical companies seeking to raise money during difficult economic periods, said Nagy, but did not disclose further. 

The company’s ideal partners would be large pharma companies with expertise in neurodegenerative and inflammation diseases, said Nagy. Out-licensing partnerships for the potential neurodegenerative diseases and tissue degenerative indications of CAL-X are also sought, she said. The US or European market is the preferred location to first start marketing CAL-X, she added. 

Partnerships will allow the revenue generation to support the internal pipeline, which is the inflammation indication of CAL-X, said Nagy. Upfront and milestone payments and royalties would be the preferred payment plan for all deals, Nagy added.