A small company with ties to Duke University is raising capital to advance the development of new drugs targeting depression and suicidal ideation.
Evecxia Therapeutics recently raised about $2.4 million through a convertible note, representing the first close of the note, which will eventually reach about $6 million by the end of year. Following this note, the company has ambitious goals to raise additional capital to further advance its pipeline of drug candidates in clinical trials.
This convertible note is supported by smaller existing investors, but the company aims to broaden its reach next year with a larger raise, somewhere between $25 million to more than $50 million, said CEO Jacob Jacobsen. The company is keeping its options open as to what this raise looks like, whether it's a private funding round or an attempt to reach the public markets through an IPO.
"We have to recognize that funding is less available than it was two years ago," Jacobsen said. "But ... you hear from banks and investors that there’s more appetite for later stage, clinical-stage (companies), like us."
Whichever form it takes, the goal would be to support Evecxia moving its two clinical programs into phase 2 studies. Both candidates in the company's pipeline, an oral tablet for depression and an IV infusion for suicidal ideation, have completed phase 1 trials, with Evecxia announcing favorable safety data earlier this year.
After securing capital, Evecxia aims to start the trials by the end of next year. If these studies, and subsequent phase 3 trials, are successful, the company could be in position to launch its first commercial product in 2027 or 2028.
In its lead candidate, the company is developing an oral tablet for patients who don't respond to first-line antidepressants, like Lexapro and Zoloft. Most patients benefit from and tolerate these sorts of drugs, but some don't, leading to a number of patients who remain sick. What's needed, Jacobsen said, are next-line antidepressants for these patients, and that's what the company is aiming to develop through its lead candidate, EVX-101.
Evecxia's other candidate, EVX-301, is a fast-acting IV formulation that the company is developing as a rescue therapy for patients in acute suicidal crisis. With this target, the company is trying to address a major public health problem. Suicide rates in the U.S. increased about 36 percent from 2000 to 2021, with suicide responsible for 48,183 deaths in 2021, according to data from the Centers for Disease Control and Prevention.
These fundraising and clinical development efforts follow a CEO transition in June, with Jacobsen stepping into the role after the company parted ways with its former CEO, Joseph Patti. Jacobsen said this transition was the result of a mutual agreement between the company and former CEO Patti, who had been in the role for about a year.
While he may be new to the CEO role, Jacobsen has been involved with the company since its formation, serving as one of its founders alongside fellow Duke professor Marc Caron – who died last year.
The company, since its formation, has operated with a limited headcount. As it advances its clinical development plans, Evecxia could double its number of employees – currently at six – over the next year. Depending on the size of its raise, the company could pursue additional indications for its drug candidates.
