Spinifex gets cash for pain

Private Melbourne company Spinifex Pharmaceuticals has received a healthy $12 million in venture capital from biotech investors GBS Venture Partners, Brandon Capital Partners and Uniseed.

Spinifex is developing pain management drug candidates based on technology devised by the University of Queensland, led by Professor Maree Smith, director of Brisbane-based contract research company TetraQ and head of UQ’s pain research group.

Spinifex’s lead candidate is EMA401, which is currently in Phase I trials under an IND with the US FDA.

The funding is in two tranches, with the first $6 million already received and the second targeted for Phase II clinical trials of EMA401, due to start in late 2009.

The investment by GBS Venture Partners and Uniseed is the second investment in Spinifex for both funds, the company said. Along with Symbiosis Group, they were part of a 2005 syndicate that invested $3.25 million in Spinifex, which was spun out of UniQuest, the commercialisation arm of UQ.

Spinifex is led by former Starpharma executive Tom McCarthy. He said that while the new funding is being targeted at developing the company’s lead candidate through Phase II clinical trails, management was also working towards deepening Spinifex’s clinical pipeline.

He said the funding was pleasing, particularly in the context of the current pressures on listed biotech companies.