Synendos Therapeutics raises CHF 20 million in Series A financing round

12.11.2020 09:01, Isabelle Mitchell

Synendos Therapeutics (Synendos), a biopharmaceutical company developing a new class of small molecules aimed at restoring the natural functioning of the endocannabinoid system in the brain with the potential for treating a wide range of Central Nervous System (CNS) disorders, announces it has raised CHF 20 million in a Series A financing co-led by Kurma Partners and Sunstone Life Science Ventures and participation from BERNINA BioInvest, Schroder Adveq, High-Tech Gründerfonds, Lichtsteiner Foundation, Essential Investments, Zürcher Kantonalbank and private investors.

Synendos is developing first-in-class inhibitors that modulate a newly identified drug target in the body’s endocannabinoid system, enabling restoration of endogenous cannabinoid levels that are suppressed in certain pathological conditions. The endocannabinoid system is a key neuromodulator system in the CNS involved in regulating various physiological and cognitive processes. Synendos’ newly developed selective endocannabinoid reuptake inhibitors (SERIs) act by increasing the levels of endogenous cannabinoids in a self-limiting mode of action, representing an innovative and potentially safer therapeutic approach to CNS disorders associated with anxiety, mood and stress-related disorders. 

Incorporated in April 2019, Synendos Therapeutics was spun out of the University of Bern and the research consortium, NCCR TransCure. In that same year, the biotech startup was also a Venture Kick winner and a Venture Leader Life Sciences. Synendos Therapeutics’ novel technology stems from 10 years of solid research on endocannabinoid biology and pharmacology carried out at the university led by co-founders, Professor Jürg Gertsch and Dr. Andrea Chicca. The research team led by Professor Jürg Gertsch is dedicated to drug discovery in the endocannabinoid system.

Currently in preclinical development, proceeds from the financing will be used to complete this development and advance Synendos’ lead drug candidate through safety and proof of concept studies in a relevant and well-defined disease indication as part of early/initial clinical trials.

Dr. Andrea Chicca, co-founder and CEO of Synendos Therapeutics, commented: “There are considerable neuropsychiatric complications and comorbidities associated with CNS disorders and, in today’s world, an increasing prevalence of anxiety-related conditions. Despite this, it has been 25 years since a new drug was approved for the treatment of neuropsychiatric disorders. This highlights the urgent need for new safe and effective treatments in this area and underpins Synendos’ mission to focus on the development of a novel drug technology to help combat anxiety, mood and stress-related disorders. We are very pleased to have attracted such a strong syndicate of world-class investors. In the validation of our science, they bring much more than just financing and will enable us to work towards reaching a clinical inflection point with an efficient and clearly-defined path.”

We talked to Dr. Andrea Chicca about the recent fundraising round and how the Venture Kick and Venture Leaders programs have contributed to Synendos Therapeutics’ growth. 

Can you tell us more about how the investment round was led, and what lessons you have learned? 
During the process of finalizing the investment round, I learned several lessons. Here, I would like to share one of them: All the steps involved in closing the financing round represent an extremely valuable opportunity to test the affinity between the founders/management team and the investors. This period of bidirectional evaluation can be used to build up trust with the persons who most likely will sit on the company’s board of directors. This time can also be used to assess whether the vision of the company and the investment funds match and whether this match is shared among the different investors in the syndicate. Closing the first large financing round represents the successful end of an important phase of the company. At the same time, it represents the starting point of another relevant and challenging journey.

You won Venture Kick in 2019. How did it help you lay the foundation for your growth and today’s achievement?
From the incorporation in April 2019, Synendos was supported by a significant amount of non-dilutive funding. Venture Kick was one of the important pieces of this support, together with BaseLaunch, Gebert Rüf Stiftung (Innobooster), and the European Union. The financial support enabled Synendos to maintain IP costs, pay salaries, and advance the preclinical development of our drug candidate, among other activities. All these aspects were instrumental for Synendos to grow while being in the fundraising mode and helping to attract investors.

You also participated in Venture Leaders Life Science in 2019. How did it leverage your fundraising strategy?
When I joined the crew of Venture Leaders Life Sciences in 2019, Synendos was just born. This experience gave me a unique opportunity to be exposed to such a high-quality selection of investment funds and professionals. The program helped me a lot to refine the message to convey to investors and to highlight the key features of our technology. The trip to Boston was extremely valuable to exchange experiences with the other Swiss startups and see them “in action,” pitching to investors. This combination of factors, including the brilliant support from Jordi [Montserrat] and Philip [Hassler], strengthened our fundraising strategy.