Apnimed has raised $62.5m funding in a Series C round led by new investor Sectoral Asset Management to advance new pharmaceutical treatments development for obstructive sleep apnea (OSA) and related sleep disorders.
Other new investors Alpha Wave Ventures, NexPoint also participated in the round along with existing investors Morningside Ventures, Seligman Investments, and Tao Capital Partners.
Apnimed will use the proceeds from the round to support plans to advance its lead programme, AD109, into Phase III development.
Furthermore, by strategically growing the team, the company will support further programme development and initial commercial plans.
Apnimed chief executive officer Larry Miller said: “Patients with obstructive sleep apnea are in need of new pharmaceutical treatment options to manage this serious, life-altering, and life-threatening disease.
“We’re pleased to have assembled this well-respected and committed group of investors as we seek to change the treatment paradigm for OSA and related sleep disorders.”
As part of the round, Sectoral Asset Management partner Stefan Larson, and Alpha Wave Ventures Biotechnology managing director Chris Dimitropoulos will join Apnimed’s board of directors.
Morningside Capital’s Isaac Cheng will also join the board and replace Gerald Chan.
Apnimed’s potential first-in-class, investigational, oral pharmacologic combination AD109 is dosed once daily at bedtime and is intended to treat OSA patients across a broad disease severity spectrum.
It acts on key neurological pathways in OSA that cause upper airway closure at the time of sleep.
Following completion of the Phase II trials, Apnimed plans to meet with the FDA to discuss the development programme for Phase III studies.