Vertero Therapeutics Emerges with New Focus and $20M Funding for Neurodegenerative Disease Research

Axial Therapeutics, a biotech company previously focused on autism-related therapies, has reemerged after a two-year hiatus with a new identity and mission. Now known as Vertero Therapeutics, the company has secured $20 million in Series D funding to support its renewed focus on neurodegenerative diseases, particularly Parkinson's disease.

Strategic Rebranding and Refocusing

Vertero Therapeutics announced its rebranding on Tuesday, marking a significant shift in the company's direction. The new name reflects the company's mission "to transform the perception and treatment of neurodegenerative diseases to delay progression and preserve quality of life for patients as long as possible."

This strategic pivot comes after nearly two years of silence following Axial Therapeutics' phase 2b trial for an autism-related therapy. While the company never publicly disclosed the results of this trial, which were expected in the first quarter of 2024, the rebranding suggests a complete redirection of the company's research and development efforts.

Parkinson's Disease Pipeline and Funding

At the forefront of Vertero's new pipeline is VT-5006, a gut-selective small molecule designed to target CsgA, a microbial amyloid believed to drive alpha-synuclein aggregation and inflammation in Parkinson's disease. This approach is based on research conducted by the company's co-founder, which linked a gut-restricted amyloid inhibitor to improved behavior and pathology in mouse models.

The $20 million Series D funding round, led by investors including OneVentures and Seventure, is earmarked to support the development of VT-5006 through Phase 1b trials and prepare for Phase 2 studies. Vertero plans to initiate a Phase 1 trial of VT-5006 later this year, marking a significant milestone in the company's new direction.

Future Prospects and Pipeline Expansion

In addition to advancing VT-5006, Vertero intends to use the remaining funds from the recent investment to support drug discovery efforts and expand its pipeline. This approach suggests that while the company is currently focused on Parkinson's disease, it may broaden its research into other neurodegenerative conditions in the future.

The reemergence of Axial as Vertero Therapeutics represents a notable shift in the biotech landscape, highlighting the dynamic nature of the industry and the potential for companies to pivot their focus in response to research outcomes and market opportunities.