News


Celtaxsys Secures $45M in Capital to Fund Novel Anti-inflammatory Phase 2 Programs in Cystic Fibrosis and Acne

Atlanta, GA–(June 8, 2015) – Celtaxsys, Inc., a clinical stage drug development company
focused on developing novel therapies for inflammatory diseases, today announced the
successful completion of a $40M Series D financing led by Domain Partners VIII. Additional
investors in the financing include Lumira Capital, RMI Partners, Masters Capital Management
and the Georgia Research Alliance Venture Fund.
The financing will be supplemented by a $5M grant from the Cystic Fibrosis Foundation
Therapeutics (“CFFT”), the non-profit drug discovery and development affiliate of the Cystic
Fibrosis Foundation (“CFF”). The grant will help fund Celtaxsys’s Phase 2 trial assessing the
safety and efficacy of the company’s lead candidate, CTX-4430, a once daily, oral antiinflammatory
medicine, in preserving lung function in CF patients. CTX-4430 has been granted
Orphan Drug Designation in both the US and the EU. The Series D proceeds will also support
the completion of an ongoing Phase 2 trial in patients with moderately severe acne vulgaris, with
top line results expected by the end of Q1 2016.
“The proceeds from this financing, led by top-tier biotechnology investors, speaks to the
investment community’s support for developing innovative anti-inflammatory medicines for
patients diagnosed with orphan diseases. We believe CTX-4430’s ability to reduce neutrophil
elastase in the airways of CF patients has the potential to preserve lung function in CF patients,
irrespective of patient-specific CF gene mutation,” said Greg Duncan, President and CEO of
Celtaxsys.
“Although new therapies have markedly improved the outlook for patients with CF over the past
few decades, the effects of chronic inflammation in the lungs is still the primary cause of early
death. An effective anti-inflammatory therapy for CF patients is sorely needed,” said Michael
Konstan, MD, Vice Dean for Translational Research at Case Western Reserve University School
of Medicine and Vice Chair for Clinical Research at UH Rainbow Babies & Children’s Hospital,
Cleveland. “Early results demonstrating that CTX-4430 can reduce elastase and sputum
neutrophils are promising. We look forward to seeing how CTX-4430, in combination with the
other treatments CF patients are taking, can reduce lung inflammation in the upcoming Phase 2
trial with the ultimate goal of improving the quality of life and survival of CF patients.”
In conjunction with the financing, Nicole Vitullo, Partner at Domain Associates, Gerry Brunk,
Managing Director at Lumira Capital, and Maxim Gorbachev, Partner at RMI Partners will join
the Celtaxsys’ board of directors at this important juncture for the Company. “We are delighted
to be adding substantial life-sciences expertise to our board as we position ourselves to advance
our lead candidate into Phase 2 and our broader Leukotriene A4 Hydrolase inhibition platform to
treat patients with a variety of inflammatory diseases”, commented Daniel Perez, Chairman of
the Celtaxsys Board of Directors.
About Cystic Fibrosis: Cystic fibrosis (CF) is a chronic disease that affects the lung and
digestive system and impacts 70,000 patients worldwide. CF is caused by genetic deficiencies
leading to abnormal protein functioning, the result of which causes the body to produce
excessive levels of unusually thick mucus in the lungs, pancreas, and GI tract. This excessive
sticky mucous clogs the lungs, leading to life threatening infections and hospitalizations, as well
as altering the ability to break down and absorb food. Respiratory distress in CF, defined as acute
difficulty in breathing, infection and/or hospitalization, is most commonly related to lung
infection and inflammation induced lung tissue damage attributable to an overwhelming and
dysfunctional response by neutrophils.
About acne vulgaris: Acne vulgaris (AV), or simply acne, is an extremely common skin disease
affecting an estimated 650 million worldwide. AV is characterized by the proliferation of
inflammatory and non-inflammatory skin lesions, hyperactive sebaceous glands, and in some
cases, permanent skin scarring.
About CTX-4430: CTX-4430 is a once-daily oral drug candidate currently undergoing clinical
trials for inflammatory diseases. It is a novel small molecule inhibitor of Leukotriene A4
Hydrolase (LTAH4), the key enzyme in the production of the potent inflammatory mediator
Leukotriene B4 (LTB4). LTB4 can at times create an over activation of neutrophil immune
response and has been strongly implicated in the pathogenesis of many diseases involving
excessive inflammation, including Cystic Fibrosis, COPD, Multiple Sclerosis, Irritable Bowel
Disorders and a variety of dermatologic diseases.
About Celtaxsys: Celtaxsys is a privately-held drug discovery and development company
focused on advancing treatments for serious inflammatory diseases. The company is building a
sustainable pipeline of first-in-class immuno-modulators, the most advanced of which is CTX-
4430. For more information, visit www.celtaxsys.com.