Rheostat Therapeutics Raises $23 Million Series A Financing; Developing Potential Treatments for Neurodegenerative Diseases
Rheostat Therapeutics, a biotech company focused on the discovery of novel treatments for neurodegeneration, cognition and rare diseases announced the close of a Series A financing round totaling $23 million. Proceeds will be used to advance its programs towards clinical trials, build its internal team and expand studies evaluating biomarkers.
The round was co-led by MRLV and AbbVie Ventures, and included Amgen Ventures, Alexandria Venture Investments and Mayo Clinic. Existing investors SV Health Investors and the Dementia Discovery Fund also participated. As part of this latest round of financing the company will be expanding its board to include Reza Halse, President of MRLV, and John Gustofson, Managing Director at AbbVie Ventures.
TechCXO has been working with Rheostat since April of 2018 providing outsourced accounting and finance services.
Rheostat is working to develop novel treatments for neurodegenerative disease through modulation of mitophagy and autophagy. Its central thesis is that the degradation of toxic cellular components is a fundamental node of biology. The mutations that impair these clearance pathways have been linked with multiple neurodegenerative diseases, many of which are associated with cognitive impairment like Parkinson’s disease. The company is working to leverage its understanding of these pathways to discover and develop novel small molecules that will restore cellular balance and treat neurodegenerative and rare diseases.
“Mitophagy and autophagy represent a fundamental, powerful node of biology with the real potential to improve the lives of patients suffering from a range of neurodegenerative diseases and senescence. Our investors have provided our world-class scientific team with the funding to continue to build Rheostat and advance our programs toward the clinic,” said Joshua Resnick, MD Chairman and Interim CEO of the company.
Rheostat was incubated and seeded by SV Health Investors and the Dementia Discovery Fund and founded by Tim Harris, EVP R&D at Bioverativ, a Sanofi company; Wade Harper, Chair & Professor of Cell Biology at Harvard Medical School and the Bert and Natalie Vallee Professor of Molecular Pathology; Tony Hyman, Director of the Max Planck Institute of Molecular Cell Biology and Genetics: Dresden, Germany; and Ivan Dikic, Director of the Institute of Biochemistry II at the University Clinic, Frankfurt. The company’s Chief Scientific Officer is Magdalene Moran, and it is also guided by a Scientific Advisory Board, comprised of the founders, Wolfdieter Springer, Ph.D., (Mayo Clinic) and Bernardo Sabatini, MD, Ph.D., (Alice and Rodman W. Moorhead III Professor of Neurobiology, Harvard Medical School; and HHMI Investigator).