SOM Biotech secures €7m for repurposing drugs for rare CNS diseases

Spanish pharmaceutical company SOM Biotech has raised €7 million in a new financing round to support its work in repurposing drugs for orphan diseases of the central nervous system (CNS). The round, which was led by an undisclosed holding company owned by a European family with a history of investing in the pharmaceutical sector, also saw participation from various existing partners. This new influx of capital will help the company advance its drug development and clinical trials.

CEO Dr. Raul Insa highlights the company’s growth and unconventional funding strategy. According to Dr. Insa, SOM Biotech has raised over €12 million since its inception, primarily through private capital, subsidies, and public loans, rather than venture capital. He pointed out that 59% of the company’s shareholders are international, with 26% from outside Europe, demonstrating its global appeal. Dr. Insa also emphasized the company’s impressive valuation, claiming that independent experts have pegged SOM Biotech’s worth at over €200 million. This valuation, he says, has already yielded substantial returns for early investors.

The funding will be used to accelerate clinical trials and expand operations. A significant portion of the capital will be directed toward completing the phase 2a proof-of-concept trial for SOM3355, a compound currently being tested as a treatment for the chorea movements associated with Huntington’s disease. SOM3355 is SOM Biotech’s second drug candidate to enter clinical development, following its repurposing from a drug used for arterial hypertension in certain Asian countries. The company leveraged its proprietary artificial intelligence platform to identify this novel therapeutic activity. SOM Biotech is optimistic about the potential of SOM3355, predicting it could generate over €600 million in annual sales over the next five years.

Expanding its global presence and licensing agreements is also a key focus for the company. SOM Biotech aims to strengthen its licensing and co-development activities to build a global footprint in the burgeoning field of drug repurposing for orphan CNS diseases. With its latest funding round, SOM Biotech is well-positioned to continue making strides in this important area of drug development, addressing unmet medical needs for rare and complex diseases.