Kynexis has raised €40 million in a Series A extension, bringing its total Series A financing to €97 million ($110 million), as the clinical-stage biotechnology company moves toward late-stage development of its experimental treatment for cognitive impairment associated with schizophrenia.

 

The financing was led by new investor Novartis Venture Fund, with existing backers Forbion, Ysios Capital and Sunstone Life Science Ventures also participating.

 

The fresh capital will fund the final activities of Kynexis’ Phase 2 proof-of-concept trial of KYN-5356, preparations for registrational studies in cognitive impairment associated with schizophrenia (CIAS), and development of the company’s broader pipeline targeting cognitive disorders, including Alzheimer’s disease.

 

Kynexis has completed enrollment in the Phase 2 study and expects to report topline results by the end of 2026.

 

"We are pleased to welcome Novartis Venture Fund to our existing investor syndicate as we continue to execute on our vision of building Kynexis into a leading late-stage cognition company," said Kees Been, Chief Executive Officer of Kynexis. 

 

"This financing enables us to continue clinical development of KYN-5356 and begin preparing for registrational studies in CIAS. We believe our novel KAT-II inhibition approach has the potential to address cognitive dysfunction across multiple neurological and neurodegenerative disorders. Our goal is to bring meaningful new treatment options to people whose cognitive symptoms profoundly impact their daily lives."

 

The deal also brings Novartis Venture Fund’s Marianne Uteng onto Kynexis’ Board of Directors, while Mathias Frederiksen joins as a Board Observer.

 

The company is simultaneously expanding its commercial and dealmaking capabilities. Kynexis recently appointed Neil Swami as Chief Business Officer and added John McDonald, former Head of M&A at Novo and current Operating Partner of Business Development and M&A at Forbion, as an advisor.

 

KYN-5356 is an investigational oral small-molecule inhibitor of KAT-II and is being developed as a potential first-in-class treatment for CIAS.

 

KAT-II is the primary enzyme responsible for producing kynurenic acid (KYNA) in the brain. Elevated KYNA is believed to interfere with NMDA and alpha-7 nicotinic receptor signaling, mechanisms implicated in learning, memory and executive-function deficits.

 

Kynexis is seeking to reduce KYNA levels by inhibiting KAT-II, with the aim of restoring signaling involved in cognitive function.

 

The company is initially targeting CIAS but plans to explore KYN-5356 in other cognitive disorders, including Alzheimer’s disease.

 

The randomized, double-blind, placebo-controlled Phase 2 trial enrolled approximately 150 adults with CIAS across 13 clinical sites in the United States.

 

Participants receive KYN-5356 or placebo over 28 days, with researchers evaluating efficacy, safety, pharmacokinetics and pharmacodynamics when the drug is used as an adjunctive treatment.

 

Kynexis says enrollment is complete and it remains on track to release topline results by the end of 2026.

 

The results could provide a key test of the company’s KAT-II inhibition strategy and determine whether KYN-5356 can advance toward registrational development in CIAS.