A clinical-stage biotech firm developing therapies for neurodegenerative diseases launched in Houston with $10 million in funding.
Using technology licensed from Houston Methodist, Houston-based Coya Therapeutics Inc. is using regulatory T-cell therapy to treat patients with neurodegenerative diseases like ALS, Alzheimer's, Parkinson's and frontotemporal dementia.
Dr. Howard Berman, CEO of Coya Therapeutics, said regulatory T-cell therapies differs from T-cell therapies. In oncology, manipulated T-cells are used to enhance the body's immune system to attack cancer. Dr. Jim Allison, chair of immunology for the University of Texas M.D. Anderson Cancer Center, was awarded the 2018 Nobel Prize in Physiology or Medicine for his discoveries on the biology of T-cells.
Coya is using regulatory T-cells to slow the body's immune system. Phase I clinical trials have indicated that the treatment may be effective in slowing ALS progression.
"What we realized is that you cannot give [the treatment] one time," Berman said. "That was the whole fundamental basis of our Phase II trial is to give these on monthly infusions to show that the patients are not just stabilizing over a course of a month, but over many months."
Coya expects to receive data from the technology's Phase II clinical trial sometime this summer. In order to advance its lead therapeutic program, Coya raised $10 million from institutional and accredited investors. The financing round, which included the conversion of outstanding debt, was led by Boca Raton, Florida-based Allele Capital Partners.
Berman said the company intends to raise significantly more money later this year when results from the double-blind trial are released.
"I can say for certainty that the next series of capital raised can come either from pharma or it can come from tier 1 capital, like large biotech-based hedge funds and venture firms," Berman said.
Berman, who has previously held pharmaceutical industry executive roles with companies like Eli Lilly & Co. and Novartis, was introduced to the Houston Methodist biotech through Dr. Stanley Appel, co-director of Methodist's Neurological Institute and a internationally renowned ALS expert. As Methodist works the therapy through clinical trials, Berman formed a holding company, Nicoya Health, to license the technology, license patents and raise financing. Nicoya Health subsequently merged with Coya Therapeutics and announced the $10 million capital raise, Berman said.
Coya is also building out its team. The company is hiring for a CFO with experience in biotech and public markets, Berman said. Coya also plans to add to its regulatory and manufacturing capabilities.
"I anticipate, up until the end of 2021, probably having at least five to 10 more hires, and I'd like them to be Houston-based, if possible," Berman said.
Research on Coya's therapeutic candidates are performed in Houston Methodist's facilities, and the company has office space at 5850 San Felipe St. Berman said that as the Covid-19 pandemic improves, the company anticipates finding additional office space near the Texas Medical Center to facilitate growth.
