A life sciences startup backed by one of the region’s most active investment groups will be looking to raise new funding this year as it continues to work through clinical trials for its lead product.
Alphyn Biologics, a clinical-stage dermatology company developing a new class of drugs for skin diseases, will pursue a Series B financing round in 2023. It did not give a target raise. The company, based in Cincinnati and Annapolis, Md., just announced in September an oversubscribed $3.3 million Series A, led by local capital investment group Queen City Angels.
The pending funding news was announced last week as Alphyn reported positive results from the first cohort of its phase 2a clinical trial for its lead candidate, AB-101a, a non-steroidal topical therapeutic for mild-to-moderate atopic dermatitis. Atopic dermatitis, otherwise known as AD, is considered the most common form of eczema.
The trial met all of its primary endpoints, and its results highlight AB-101a's potential to be an “effective and safe treatment for AD,” Alphyn said. The study was conducted in Australia and enrolled 41 patients with treatment evaluated after four weeks.
AD affects millions worldwide. Steven Pentelnik, Alphyn Biologics co-founder and president and a former Procter & Gamble researcher, told me last year it represents a huge market opportunity. Per research firm Market Data Forecast, the global atopic dermatitis market is expected to hit $21.8 billion by 2027.
"Patients with mild-to-moderate atopic dermatitis suffer considerably from the symptoms of this often debilitating disease, yet available treatments come with side effects and safety concerns," Alphyn CEO Neal Koller said in a release.
The company’s Series A is helping support the Phase 2a clinical trial. Alphyn Biologics said it plans to further study AB-101a in a Phase 2b/3 trial this year in conjunction with the Series B raise.
Enrollment is ongoing in the second cohort of the Phase 2a clinical trial. While the first cohort enrolled AD patients without bacterial infection, which is sometimes associated with the disease, the next cohort is investigating the ability of AB-101a to treat patients suffering from staph and the highly drug-resistant methicillin-resistant staph, or MRSA.
Atopic dermatitis severity ranges from patient to patient. Its symptoms include chronic itching, redness of the skin and cracking.
As a "4-in-1" solution, AB-101a would enable AD to be treated with a single therapeutic rather than multiple drugs. Alphyn is studying its use in pediatric patients, starting at age 2, as well as in adult populations.
AB-101a was developed using Alphyn's proprietary AB-101 platform. Alphyn said it was able to begin the AB-101a clinical trial program in Phase 2 due to AB-101’s strong safety profile.
Alphyn Biologics, which became operational in 2020, has raised approximately $6.9 million to date.
Its backers also include Angel Physicians Fund, a seed-stage investor group headed by St. Elizabeth Healthcare oncologist Dr. Manish Bhandari, and Ohio-based Serial Stage Venture Partners, among others.
