Lipidio Completes First Financing Step to Develop PWS Therapy GDD3898

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by Margarida Azevedo |

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Lipidio Pharmaceuticals has completed the first step of financing to support its development of GDD3898, a treatment candidate for Prader Willi syndrome (PWS) and other conditions associated with obesity.

Investors in this series A funding include the Foundation for Prader Willi Research.

“Prader-Willi syndrome, or PWS, is a complex neurodevelopmental genetic disorder, and the most common orphan genetic cause of life-threatening childhood obesity,” John Walter, the foundation’s CEO, said in a press release.

“We are pleased to invest in Lipidio to support the advancement of GDD3898, a promising program that aims to target the metabolic conditions associated with PWS,” he said.

According to Lipidio, studies on GDD3898 have produced encouraging safety data in more than 100 participants, supporting its advancement into Phase 2 clinical testing.

The company plans to conduct more studies to support the therapy’s potential in indications associated with excessive body fat. Besides PWS, the San Diego-based company focuses on non-alcoholic steatohepatitis and antipsychotic drug-induced weight gain — all disorders with high unmet medical needs.

Uncontrolled hunger, or hyperphagia, is one of the main symptoms of PWS, which can lead to excessive weight gain and childhood obesity.

“We are pleased to complete the first portion of our Series A financing, which will enable us to transition our lead program, GDD3898, into proof-of-concept clinical studies for new indications associated with excess body fat,” J. Gordon Foulkes, PhD, CEO and director of Lipidio, said.

“We believe that we have assembled the right team, the right board and the key scientific advisers to unlock the value in GDD3898 and look forward to advancing our development plans with the support of our new investors,” he added.

Also involved in this investment round, with Maxim Merchant Capital as the sole placement agent (an intermediary that raises capital), were numerous family offices and individual private investors.