Inception Sciences, Inc.

Contineum Therapeutics has raised $110 million in an initial public offering, the biotechnology industrys 10th of the year, to advance a group of drugs its developing for neurological and inflammatory diseases.The biotech startup on Thursday sold 6.875 million shares at $16 apiece, the low end of a range it set earlier this week.. Itll begin trading on the Nasdaq stock exchange on Friday under the symbol CTNM.Contineums offering keeps biotech IPOs on their strongest pace in three years, according to BioPharma Dive data. By this time last year, only four drug startups had gone public, raising $375 million. In 2022, nine companies had pulled in $744 million.The IPO activity has been accompanied by a step-up in funding for both public and private biotech companies. Earlier this week, analysts at the investment bank Jefferies wrote that public biotechs raised about $11 billion in stock offerings between January and March, the most in more than three years. William Blair analysts, in a separate report, found that biotech startups raised $5.1 billion in the first quarter, a 28% increase from 2023. That included a resurgence in financings of at least $100 million, with 21 of 60 rounds hitting that mark, they wrote.The trends suggest a possible reversal from the sectors downturn and the potential advent of an up cycle driven by anticipated rate cuts, continued M&A, and strong fundamentals, Jefferies analysts wrote.Still, the pace of IPOs remains short of a peak a few years ago. Wall Street investors have also mostly rewarded biotechs with drugs in clinical testing, particularly those in the later stages of development. Since the start of 2023, companies with drugs in Phase 2 testing at the time of their IPO have raised a median of $129 million, versus $80 million for those in Phase 1 and $52 million for preclinical companies, data show.With a $110 million IPO haul, Contineum fits that pattern. The company has two drugs in testing. One, partnered with Johnson & Johnson, is in a mid-stage trial in relapsing remitting multiple sclerosis and an earlier trial in depression. Another wholly owned drug is in a Phase 1 trial for idiopathic pulmonary fibrosis.The J&J-partnered drug inhibits a receptor known as M1R thats involved in multiple cognitive processes. Contineum claims in its IPO filing that the candidate is the most advanced drug of its kind in clinical development. The biotechs other drug blocks a receptor called LPA1R, an increasingly popular target for idiopathic pulmonary fibrosis. Bristol Myers Squibb and Structure Therapeutics are working on similar medicines, but Contineum claims preclinical data show its drug may be differentiated.Contineum was previously known as Pipeline Therapeutics and traces its roots back to Inception Sciences, an initiative biotech investor Versant Ventures started to turn academic research into new companies. The team behind an Inception startup later acquired by Roche, Inception 5, joined with Versant and others to launch whats now Contineum.Versant owns 32% of the company, according to the IPO filing. '

Johnson & Johnson is a partner on Contineum Therapeutics’ most advanced program, which is currently in mid-stage clinical testing for multiple sclerosis. As that research continues and Contineum plans to advance the development of its wholly owned assets, the biotech is moving forward with plans for an IPO. Contineum, which traces its origins to a startup creation engine of venture capital firm Versant Ventures, filed its IPO paperwork with the Securities and Exchange Commission late Friday. The company has not yet set any financial terms for its planned stock market debut, but IPO research firm Renaissance Capital said the offering could reach up to $150 million. The San Diego-based biotech has applied for a Nasdaq listing under the stock symbol “CTNM.” Contineum’s most advanced program is PIPE-307, a small molecule designed to selectively block the M1R receptor. This approach has potential applications in the treatment of multiple sclerosis and depression. Contineum has reported Phase 1 results showed the drug candidate was well tolerated across all doses and showed no dose-related effects on cognitive function. Nearly a year ago, J&J licensed global rights to PIPE-307 for all potential indications. However, the deal still permits Contineum to develop this molecule for relapsing and remitting forms of MS by conducting a Phase 2 study. That clinical trial is ongoing. A Phase 1 test of this molecule in depression is also underway as part of the J&J collaboration. The lead wholly owned Contineum asset is PIPE-791, a program currently in Phase 1 testing. This small molecule is designed to block LPA1, a receptor whose activation is associated with the development of organ scarring called fibrosis. The company believes the molecule’s ability to block LPA1 could treat idiopathic pulmonary fibrosis (IPF), a chronic lung disorder with few available treatments. MS is another potential application for PIPE-791. Levels of LPA, a pro-inflammatory protein, are elevated in the blood and cerebrospinal fluid of MS patients, which may contribute to the progression of this disease, Contineum said in the filing. One key feature of this molecule is its ability to penetrate the brain. In preclinical research, the company said blocking the LPA1 receptor reduces neuroinflammation and promotes remyelination, the formation of new myelin sheaths on axons that have lost this protective layer. Contineum plans to submit an application this year seeking permission in the U.K. for an open-label Phase 1b test of PIPE-791 to assess the molecule’s ability to bind to receptors in the lungs and brain as measured by PET imaging. This study will inform dose selection for planned future Phase 2 tests of the molecule in IPF and progressive MS. The pipeline also includes CTX-343, an LPA1 receptor-blocking molecule that does not cross the blood brain barrier. This capability could provide Contineum more options for its drug portfolio, the company said. CTX-343 is currently preclinical. Contineum traces its roots to Inception Sciences, one of the drug discovery engine of Versant Ventures. Inception and Roche had collaborated to discover and develop small molecules that promote remyelination of nerve fibers damaged as MS progresses. After Roche acquired this neuroscience program for an undisclosed sum in 2018, Versant launched Pipeline Therapeutics, a startup led by the same team that worked on the program that Roche acquired. Versant said Pipeline would focus on developing “next-generation neurodegenerative therapies.” In late 2023, Pipeline changed its name to Contineum Therapeutics. Contineum has raised about $194 million in financing, according to the filing. The J&J alliance paid $50 million upfront and could pay out up to $1 billion tied to the achievement of milestones. Versant is Contineum’s largest shareholder with a 32.2% pre-IPO stake; Johnson & Johnson’s stake is 10.1%. The company’s most recent financing was a 2021 Series C round that raised $80 million. As of the end of 2023, Contineum reported a $15.5 million cash position along with $109.6 million in marketable securities. That capital, combined with the IPO proceeds, will go toward continued clinical development of the LPA1 receptor antagonist, including the completion of Phase 1b testing. An unspecified amount of additional cash will go toward planned Phase 2 tests in IPF and progressive MS. Contineum also plans to use the IPO proceeds to complete Phase 2 testing of its J&J-partnered molecule in relapsing and remitting forms of MS. Image: Getty Images

Taljat David/Shutterstock Germany’s Temedica and Swiss pharma giant Roche have teamed up to develop a new mobile app companion for multiple sclerosis patients. The device is designed to deepen understanding of the disease based on real-world data gained from MS patients. The mobile app, dubbed Brisa, has been designed to help patients record their disease progression regardless of condition and treatment plans. It is also created to recognize changes in the disease progression actively. At the same time, it provides new motivational incentives for the patients. Roche and Temedica hope the app, which is free for users, will help MS patients have a better understanding of their disease and also help them improve their quality of life. Brisa's motto is "Your tailwind for an independent life with MS". "Temedica has developed Brisa in cooperation with Roche to empower MS patients to take control of and manage their own health through continuous information and support. The app combines scientific expertise and digital technology and is a unique tool for people with MS to help them improve their quality of life,” Gloria Seibert, founder and chief executive officer of Temedica said in a statement. Not only does the Brisa app track symptoms of the disease, but it also provides for the collection of individualized health data. That includes activity levels, sleep patterns and dietary habits. The collection of data leads to personalized therapy support with individualized recommendations based on the analysis of the recorded data. Seibert added that the two companies have a mutual goal of improving the quality of life of MS patients while advancing disease research. “Brisa has the potential to reach a large number of people with MS and support them individually throughout the course of their daily lives,” she said. Carola Burns, Roche’s Medical Lead of Neuroscience, also stated that digital technologies help advance medical progress and provide a more effective personalized treatment for individual patients. Harnessing the capabilities of digital technology is a means to improve the treatment of patients and their quality of life while at the same time deepening the understanding of multiple sclerosis. “We are delighted that we have found an innovative partner for this in Temedica,” Burns added. Roche developed Ocrevus, the first therapy approved for relapsing multiple sclerosis. Three years ago, the pharma giant also snapped up a regenerative therapy program for multiple sclerosis from Inception Sciences. The program is being assessed as a potential therapy for remyelination of nerve fibers damaged during the progression of multiple sclerosis Multiple sclerosis is a disease of the central nervous system that is estimated to affect 2.3 million people across the globe. In MS, the disease causes the immune system to attack the myelin sheath, which is the insulation and support around the nerve cells in the brain, spinal cord and optic nerves. This attack causes inflammation and consequent damage. Currently, Brisa is only available in Germany, where it is estimated that there are 240,000 MS patients.