NeurogesX Secures $35 Million in Third Round of Venture Funding

Strategic Insights -

NeurogesX Inc., a developer of pain relief products based on capsaicin, the chemical found in chili peppers, has attracted venture investors with its innovative approach to treating neuropathic pain. The California-based company has secured $35 million in its third round of funding, bringing its total raised to $65 million. The new funding will be used to commercialize the company's neuropathic pain relief treatments, which are currently in the second phase of clinical trials.

Key Takeaways:

  • NeurogesX has secured $35 million in its third round of venture funding, led by Global Life Sciences Ventures and Diamond Capital Management.
  • The company has raised a total of $65 million to date, and intends to use the new funding to commercialize its neuropathic pain relief treatments.
  • NeurogesX's first product, which targets multiple neuropathic conditions, is currently in the second phase of clinical trials.
  • The company specializes in neuropathic pain, associated with nerve damage following trauma, disease, surgery or chemical injury.
  • NeurogesX's products are expected to be useful in reducing pain from disorders such as postherpetic neuralgia, HIV-associated neuropathy, and shingles.
  • The company plans to commence studies on a drug targeting diabetic neuropathy later this year.
  • NeurogesX does not anticipate generating revenues until 2006 at the earliest.
  • The company plans to use the new funding for clinical trials and marketing initiatives, including forging deals outside the U.S.

Statistics:

  • NeurogesX has raised a total of $65 million in venture funding to date.
  • The company's third round of funding has brought in $35 million in new capital.
  • NeurogesX's first product is currently in the second phase of clinical trials.
  • The company plans to commence studies on a drug targeting diabetic neuropathy later this year.

Sources:

  • NeurogesX Press Release, "NeurogesX Secures $35 Million in Third Round of Venture Funding", February 24, 2004.
  • The Deal, "NeurogesX raises $22.9 million in second round", January 2002.
  • The Deal, "NeurogesX raises $7.5 million in first round", mid-2000.