Delaware-based N-Zyme Biomedical, a clinical-stage biotechnology company developing pepsin-targeted therapies for reflux disease, has closed a Series A financing round raising approximately USD 4.6 million. The funding will support the company's Phase II clinical programs in laryngopharyngeal reflux (LPR) and proton pump inhibitor (PPI)-refractory gastroesophageal reflux disease (GERD).
The round drew participation from a mix of healthcare professionals, entrepreneurs, a venture capital group, and strategic investors, though no lead investor was named. Proceeds will fund the ongoing Phase II trial in LPR, the planned Phase II study in PPI-refractory GERD, along with regulatory, manufacturing, and business development activities. Prior to this round, N-Zyme relied on non-dilutive funding, including two Falk Medical Research Trust awards, and had already advanced its lead candidate into the clinic, beginning its Phase II LPR trial in June 2026. This marks the company's first disclosed institutional equity raise.
N-Zyme's platform is built on the premise that pepsin, not just gastric acid, is a primary driver of tissue damage in reflux disease. Pepsin remains partially active even at higher pH levels reached during PPI therapy, and research from the company's academic origins has shown it can be internalized into epithelial cells and reactivated intracellularly, contributing to persistent symptoms despite acid suppression. N-Zyme's lead approach repurposes fosamprenavir, an FDA-approved HIV protease inhibitor, based on structural similarities between HIV protease and pepsin, both aspartic proteases. This enzyme therapeutics strategy aims to address an underlying mechanism of tissue injury rather than simply reducing acid output.
The company's lead program is oral fosamprenavir in a Phase II trial for LPR, a condition with no FDA-approved pharmacological treatment. A second Phase II program in PPI-refractory GERD, using a sustained-release oral fosamprenavir-sodium alginate formulation, is planned. An earlier-stage aerosolized formulation for LPR is also in development, with GLP inhalation toxicology studies underway. The drug development funding secured through this biotech Series A funding round is intended to fully capitalize both Phase II programs.