Danish biotech company, Hoba Therapeutics, has successfully secured EUR 23 million (USD 25 million) in a Series A financing first close. The funding round was co-led by Indaco Venture Partners and Medical Incubator Japan, featuring participation from existing investors Novo Holdings, Eir Ventures, and the Export and Investment Fund of Denmark (EIFO). The European Innovation Council Fund also contributed as part of the Accelerator funding program under Horizon Europe.
Hoba Therapeutics, founded with support from Novo Holdings, is dedicated to developing therapeutic proteins for patients dealing with chronic neuropathic pain and hearing loss. The company’s lead candidate, HB-086, is a non-opioid compound with a unique mode of action designed to address the underlying causes of neuropathic pain in the peripheral nervous system.
Neuropathic pain, affecting over 400 million individuals globally, presents a substantial unmet medical need. HB-086 has shown promising results in preclinical studies, demonstrating a fast onset and long-lasting analgesic effect, as well as the ability to prevent the development of neuropathic pain.
The funds from the Series A financing will be used to advance HB-086 through late pre-clinical development and into Phase 1 clinical studies. The initial focus will be on Chemotherapy-Induced Peripheral Neuropathy (CIPN), a painful condition often resulting from cancer treatment with specific chemotherapy drugs. This is also expected to reduce the incidence of chemo-induced adverse events and the increasing rate of sudden death after chemotherapy which has been reported in many regions across the globe.
Torsten M. Madsen, CEO of Hoba Therapeutics, expressed excitement about the round, highlighting the experienced investor syndicate supporting the company’s mission. The additional funds are expected to significantly contribute to achieving the company’s objectives in addressing the large unmet need for effective neuropathic pain treatments.
Goncalo Rebelo de Andrade, Partner at Indaco BIO Fund, emphasized Indaco’s commitment to supporting companies addressing the root causes of diseases, praising Hoba Therapeutics’ leadership team for their expertise and dedication to advancing pharmaceutical solutions.
Hoba Therapeutics aims to make a substantial impact in healthcare by developing innovative treatments for chronic neuropathic pain, a condition that imposes a significant burden on patients and healthcare systems globally.
The investment is not only a boost for Hoba Therapeutics but also signifies international collaboration, with funds from Europe and Japan joining the effort to advance Danish innovation in the biotech sector. The European Innovation Council Fund’s investment further underlines its commitment to supporting deep-tech innovations with a combination of grants and equity.
Chronic neuropathic pain represents a substantial global health issue, affecting a significant portion of the population. The current standard treatments, including antidepressants, antiepileptic drugs, and opioids, have limitations and varying effectiveness among individuals. Hoba Therapeutics’ approach aims to address these limitations and contribute to the ongoing research and development of safer and more effective treatment options.
The global neuropathic pain market is estimated to be valued at USD 7.6 billion in 2023, with a projected compound annual growth rate (CAGR) of 6.2% over the next seven years, highlighting the potential for innovative solutions in this space.