Macquarie Uni biotech spin out raises $16.8m Series A

A biotech startup hoping to use gene therapy to treat neurodegenerative diseases such as Motor Neurone Disease (MND), epilepsy and dementia has raised $16.75 million in a Series A.

The round for Celosia Therapeutics was led by research  commercialisation fund Uniseed, with support from UniSuper and hedge fund manager Iomar Barrett, who has amyotrophic lateral sclerosis (ALS) disease, the most common form of Motor Neuron Disease (MND), which the startup is hoping to treat.

The biotech is the result of more than a decade of research and was spun out of Macquarie University in 2022 with $2 million in Seed funding. The startup has access to a portfolio of patents for advanced gene therapies developed by the university’s researchers.

The funds will be used to advance the development of Celosia’s novel gene therapy, CTx1000, which targets a protein linked to ALS. There is no cure for MND, which causes a loss of muscle control and death. One of the best known people with the disease is former AFL footballer Neale Daniher, who cofounded the annual Big Freeze charity event a decade ago to raise funds for FightMND and research into the disease.

In the case of Celosia’s CTx1000 is the result of a discovery made by scientists at Macquarie University’s Dementia Research Centre, which has shown the potential to stop the progression of the disease and even reverse the damage.

Celosia CEO Dr Kathryn Sunn, who is also the director of commercialisation at Macquarie Uni, said the investment   positions Australia at the forefront of global ALS research.

“Our CTx1000 gene  therapy program capitalises on 15 years of research from the team at Macquarie University, led by Professor Ittner and Professor Ke,” she said.

“This new funding will fast-track clinical application of their  research discoveries, enabling us to bring life-changing therapies to those who need them the most.”

Researcher Prof Lars Ittner, who is also Celosia’s chief medical officer, said: “CTx1000 is a novel disease-modifying therapy for ALS,  differentiating itself from other treatments that only target symptoms of the disease. We firmly believe in the potential of this therapy, and are excited to continue exploring its efficacy at clinical stages.”

Investor Iomar Barrett, who is dealing with ALS, said the CTx1000 program is realistic pathway to finding a cure.

“As a fund manager for over 20 years, it is my job to identify macro trends and emerging technologies that are poised to reshape the future,” he said.

“I believe that CTx1000 is one of such significance for patients around the world, with the promise of  bringing tangible benefits and rewriting the narrative for ALS patients.”