AZTherapies Closes $26.3 Million Series C Preferred Equity Financing

Proceeds to support ongoing Phase 3 Alzheimer’s clinical trial, expected to complete in 2020, and advancement of pipeline of candidates targeting neuroinflammation


BOSTON, Oct. 17, 2019 (GLOBE NEWSWIRE) -- AZTherapies, Inc., a biopharmaceutical company developing therapeutics to extend brain health, today announced the closing of a $26.3 million Series C Preferred equity financing. This round was co-led by Spinnaker Capital and Cosine, with participation from new and existing investors, including DRADS Capital, IBS Capital, and Wexford Capital.

Proceeds from the financing round are expected to fund the completion of COGNITE, the company’s fully enrolled pivotal Phase 3 clinical trial, which is investigating the safety and efficacy of the company’s lead candidate ALZT-OP1 in patients with early Alzheimer’s disease, and is being conducted under a Special Protocol Assessment with the U.S. Food and Drug Administration. Proceeds are also anticipated to fund ALZT-OP1 pre-commercial efforts and the continued advancement of the company’s broad pipeline.

“We are very grateful to have such a committed group of investors who have deep expertise in CNS drug development and believe in our mission to target neuroinflammation as the root cause of serious neurodegenerative disease,” said David R. Elmaleh, Ph.D., Founder, CEO, and Chairman of AZTherapies. “This round will provide crucial support as we work to complete the COGNITE trial by the end of next year and advance our next candidate, AZT-101, into a Phase 2 clinical trial in patients with post-ischemic stroke cognitive impairment and into a Phase 1/2a clinical trial in amyotrophic lateral sclerosis (ALS).”

Anastasios “Tas” Parafestas, Managing Member at Spinnaker Capital, who has joined the AZTherapies Board of Directors as an observer, commented on the financing: “We believe AZTherapies to be a rare investment opportunity as an independent company with a fully enrolled Phase 3 trial in Alzheimer’s disease. Recognizing their unique combination of a novel scientific approach, targeting neuroinflammation and microglia, and a forward vision on providing affordable and accessible treatments, we are pleased to support AZTherapies’ efforts to progress what could be a breakthrough advancement for this large and greatly underserved patient population.”

About AZTherapies
AZTherapies is an advanced clinical-stage biopharmaceutical company developing novel therapies that aim to fundamentally change neurodegenerative disease progression, extending normal cognition and function and improving quality of life in the aging population. Advancing a growing pipeline of candidates to treat patients with few therapeutic options, our lead candidate, ALZT-OP1, is built on a multi-modal approach that recognizes neuroinflammation as a root cause of serious neurodegeneration and seeks to stop or slow the progression of disease. Our Phase 3 COGNITE trial in early Alzheimer’s disease is fully enrolled and expected to complete in late 2020. Following our lead program, we are advancing candidates for the treatment of post-ischemic stroke cognitive impairment, amyotrophic lateral sclerosis (ALS), and other indications. AZTherapies is a private company headquartered in Boston, Massachusetts. To learn more, please visit www.aztherapies.com.

Media Contact:
Jennifer LaVin
207-360-0473
jlavin@aztherapies.com

Investor Contact:
Courtney Turiano
212-698-8687
courtney.turiano@sternir.com