Xalud Therapeutics Completes Oversubscribed $30 Million Series C Financing

Funds to support expansion of clinical development of its proprietary, non-viral gene therapy platform for multiple chronic inflammatory diseases

NEW YORK--(BUSINESS WIRE)--Xalud Therapeutics, a clinical-stage biotechnology company developing novel non-viral gene therapies to treat pathologic inflammation, announced today that it has raised $30 million in a Series C financing.

“We are well positioned to continue advancing XT-150, our lead therapeutic candidate, through clinical development and further expand our platform,” said Diem Nguyen, Ph.D., chief executive officer of Xalud Therapeutics. “There are over 300 million people worldwide that are impacted by chronic inflammation, a core driver of numerous disease etiologies. XT-150 targets a master regulator of the immune system, interleukin-10 (IL-10), that dampens inflammation to restore tissue homeostasis. Our investors share Xalud’s vision of the incredible potential that our therapy has to alleviate this high disease burden in chronic inflammation and transform how multiple large indications are treated.”

XT-150 is a locally injectable plasmid DNA gene therapy expressing IL-10v – a proprietary long-acting, modified variant of IL-10 with enhanced durability properties over the naturally occurring wild-type cytokine. XT-150 is currently being evaluated in a Phase 2b study for moderate-to-severe pain caused by osteoarthritis of the knee, a Phase 1/2a study for peripheral neuropathic pain and a study for facet joint syndrome is expected to be initiated by end of year. While serving as milestones along a potential route to approval for each of these indications, the studies also provide valuable safety and efficacy data to guide future clinical development for additional indications currently in the IND-enabling stage.

“We are proud to lead Xalud’s Series C financing and continue to support their efforts to build a leading gene therapy company that will address a significant unmet need in the field of chronic inflammatory diseases,” said Paul Manning, chief executive officer and chairman of PBM Capital. “Xalud has assembled an experienced leadership team, supported by diverse and distinguished strategic advisors, who have made strides in progressing their clinical programs and exploring additional indications with large potential.”

About Xalud Therapeutics

Xalud Therapeutics is a biotechnology company developing a non-viral gene therapy platform to treat pathologic inflammation through immune modulation. The company is harnessing the power of interleukin-10 (IL-10), a potent cytokine that acts as a master regulator for multiple inflammatory pathways, to address the root cause of inflammation and subsequently restore homeostasis in the immune system. Xalud’s lead product candidate, XT-150, is a locally injectable plasmid DNA gene therapy expressing IL-10v, a proprietary modified variant of IL-10, that addresses pathologic inflammation and pain.