Starpharma investee Dimerix raises $1m

Dimerix Bioscience has closed a series A capital raising worth almost AUD$1 million, and has revealed plans to accelerate the development of its new compounds created by applying its technologies to novel G-protein coupled receptor (GPCR) cluster targets.

The financing was led by venture capital firm Foundation Capital and supported by the Murdoch Westscheme Enterprise Partnership fund.

"We will use this funding to advance our main drug development program for chronic gut disorders, such as the inflammatory bowel disease Crohn's disease and ulcerative colitis -- which we hope to have in animal trials in Q2 next year," said Dimerix CEO Matt Callahan. "It's a drug that targets the cannabinoid receptors outside the brain. It is a fairly hot topic at the moment.

"Cannabinoid receptors have also been targeted by French biotech Sanofi-Aventis in the development of its anti-obesity drug rimonabant, which is in phase III trials -- it is expected to be a blockbuster. We are targeting the same receptors -- there aren't very many companies that are able to develop drugs that can effectively address these targets because they have to figure out how to prevent the psychotropic effects that are associated with targeting the cannabinoid receptors."

Callahan said Dimerix' screening technology, Collision, allowed it to detect interactions between GPCRs in clusters. "This is the only technology that we are aware of in the world that allows you to do that," he said.

"In addition to our Collision technology we are also using Starpharma's (ASX:SPL) dendrimer nanostructures to develop the canabionoid drug so that it doesn't cross the blood and brain barrier, which causes psychotropic effects."

Under the deal announced in March, Starpharma contributed $200,000 in cash in return for a 30 per cent equity holding, making it the largest shareholder in Dimerix.

Perth-based Dimerix is also applying its Collision technology to other GPCR cluster targets including chemokine receptors which are associated with the progression of HIV. In collaboration with the Burnet Institute in Melbourne, validation tests are underway for a potential new mechanism for virus-host interactions, which the company hopes may lead to a therapy which delays the onset of AIDS.