Cognetix Raises $6 Million in Venture Financing to Advance Therapeutic Compounds

Cognetix, Inc. has raised $6 million in venture financing to advance its programs to discover and develop novel therapeutics based on highly specific bioactive compounds from marine organisms. The funding enables the company to advance its lead product development programs and expand its proprietary library of over 130 fully characterized, bioactive compounds for new drug discovery. The company's conopeptide compounds, derived from the venom of the Conus species of predatory marine snail, have shown great promise for treating a wide range of nervous system and other disorders.

Key Takeaways:

• Cognetix has raised $6 million in venture financing, with $4 million received up-front and an additional $2 million dependent on near-term milestones.
• The company's conopeptide compounds, derived from the venom of the Conus species of predatory marine snail, have shown great promise for treating a wide range of nervous system and other disorders.
• Cognetix expects to advance its lead product for epilepsy into clinical trials in 1999.
• The company's proprietary library of over 130 fully characterized, bioactive compounds has significant potential for new drug discovery.
• Conopeptides have been shown to bind to pharmacologically relevant receptors and ion channels in the nervous system with unprecedented specificity and high affinity.
• A conopeptide-based compound, Ziconotide, has been shown to reduce pain in Phase III clinical trials without unwanted side effects.
• Cognetix is initially focused on developing conopeptide compounds for the treatment of central nervous system disorders, including epilepsy, chronic pain, and Parkinson's disease.

Statistics:

• $6 million: the amount of venture financing raised by Cognetix.
• $4 million: the up-front amount received by Cognetix from Zesiger Capital Group, LLC.
• $2 million: the additional amount Cognetix will receive upon completion of near-term milestones.
• 130: the number of fully characterized, bioactive compounds in Cognetix's proprietary library.
• 50,000: the estimated number of bioactive conopeptides providing a natural library for new drug discovery.
• $741 million: the amount of Elan stock used to acquire Neurex Corporation, the developer of Ziconotide.

Sources:

• "Cognetix, Inc. Announces Receipt of $6 Million in Venture Financing"
• Cognetix, Inc.,
• Zesiger Capital Group, LLC