Latigo targets $150M raise after Vertex's FDA approval

Latigo Biotherapeutics, a biotech firm focused on developing non-opioid pain treatments, is actively pursuing a new funding round with a target of raising up to $150 million. This initiative follows a recent SEC filing, which has already accounted for a $50 million raise, marking a strategic move after securing $135 million a year ago from investors like Westlake, Foresite, 5AM Ventures, and Corner Ventures.

Since its launch, Latigo has experienced significant growth and development. The company has seen a change in leadership with the recruitment of a new CEO and the hiring of a chief medical officer. It also enhanced its financial management by appointing a former analyst as its finance chief. Strategic decisions were further bolstered by adding leaders from its investors, Westlake and Foresite, to its board, and appointing former Horizon CEO, Tim Walbert, as board chair.

Latigo’s efforts align with broader industry movements, notably following the landmark FDA approval of a non-opioid pain drug that Vertex Pharmaceuticals plans to market as Journavx. This approval represents a significant milestone in the pursuit of non-addictive pain management solutions, a path that similarly motivates Latigo and other companies like SiteOne Therapeutics, which recently announced a $100 million Series C funding.

The focus of Latigo, Vertex, and SiteOne is on targeting the NaV sodium channel to develop medications for both acute and chronic pain that avoid the addictive qualities of opioids. Specifically, Vertex’s newly approved drug and Latigo's lead programs aim to block the NaV1.8 sodium channel. Latigo’s primary drug candidates include LTG-001, currently in Phase 2, and LTG-305 in Phase 1. The Phase 2 trial is investigating LTG-001’s effectiveness in managing acute dental pain post-wisdom tooth extraction.

Latigo CEO Nima Farzan has expressed optimism about the potential improvements next-generation drugs can offer over existing treatments, particularly in terms of onset of action. The recent FDA approval of Vertex’s drug not only provides a framework to guide Latigo’s development efforts but also emphasizes the importance of addressing patient advocacy and government affairs to push forward the momentum against opioid use for low-risk procedures.

Looking forward, Latigo aims to utilize its in-house expertise to manage late-stage acute pain trials. However, the company is open to potential partnerships as it progresses deeper into the development and commercialization phases for chronic pain solutions. The ongoing strategic fundraising efforts and development plans underscore Latigo's commitment to advancing pain treatment and capitalizing on the shifting landscape towards safer, non-opioid alternatives.