Netherlands-based Kynexis announced the closing of a EUR 40 million (USD 45 million) extension to its Series A, bringing total Series A financing to EUR 97 million (USD 110 million), with proceeds directed at completing its Phase II proof-of-concept study of KYN-5356, a KAT-II inhibitor targeting cognitive impairment associated with schizophrenia (CIAS), and initiating preparations for registrational development. The extension gives Kynexis capital to begin preparing for registrational development before seeing Phase II results, with topline CIAS data expected by year-end.
The extension was led by Novartis Venture Fund as a new investor, with existing backers Forbion, Ysios Capital, and Sunstone Life Science Ventures participating. In connection with the closing, Novartis Venture Fund's Marianne Uteng joined Kynexis's board of directors and Mathias Frederiksen joined as a board observer. The original Series A of EUR 57 million was raised at company launch in November 2023, led by Forbion.
KYN-5356 is an investigational oral small-molecule inhibitor of KAT-II, the primary enzyme responsible for producing kynurenic acid (KYNA) in the brain. Elevated KYNA is associated with disrupted NMDA and alpha-7 nicotinic receptor signaling, contributing to the learning, memory, and executive function deficits characteristic of CIAS. No approved therapy currently addresses CIAS directly; competitors in the cognitive impairment space include programs targeting AMPA receptors and other glutamatergic mechanisms, though KYN-5356 is described by the company as the most advanced clinical-stage program specifically targeting this indication.