Lomond Therapeutics Finalizes Reverse Merger and Secures $44M in Private Placement

Lomond Therapeutics, Inc., a biotechnology company focused on advancing treatments for hematological malignancies, has announced the completion of a significant corporate transaction. On November 4, 2024, the company successfully merged with Venetian-1 Acquisition Corp. and secured $44 million through private placement financing. Following the merger, Venetian-1 Acquisition Corp. has been renamed Lomond Therapeutics Holdings, Inc., and will continue the innovative work of Lomond Therapeutics, Inc.

The merger and financing are strategic moves to support the company's promising drug development programs. The CEO of Lomond Therapeutics, Iain Dukes, highlighted the importance of this transaction for the continued progress of their clinical programs. The company is currently evaluating lomonitinib, a small molecule inhibitor, in a Phase 1b clinical trial for patients with relapsed refractory acute myeloid leukemia (AML) that have a mutated FLT3 gene. Additionally, Lomond Therapeutics is planning to start recruiting patients with chronic lymphocytic leukemia (CLL) and specific types of lymphoma for clinical trials to test lonitoclax, an oral targeted selective B-cell lymphoma-2 (BCL-2) inhibitor.

The financing round saw participation from existing investors OrbiMed and Torrey Pines Investment, along with new investors such as Deerfield Management Company, American Financial Group, and Heights Capital. Key members of the Lomond Therapeutics board, including Carl L. Gordon, Iain Dukes, Nikolay Savchuk, and Eddie Wang Rodriguez, will maintain their roles as directors.

In terms of compliance, the offering was exempt from registration under Section 4(a)(2) of the United States Securities Act of 1933, following Rule 506 of Regulation D by the U.S. Securities and Exchange Commission (SEC). The shares were sold to accredited investors on a reasonable best efforts basis. Raymond James and Wedbush & Co. acted as placement agents, while Montrose Capital sponsored the formation of Venetian-1 Acquisition Corp.

Lomond Therapeutics, co-founded by OrbiMed, Torrey Pines Investment, and Dr. John C. Byrd, is dedicated to discovering and developing groundbreaking small molecule inhibitors for hematologic cancers. The company leverages a proprietary hybrid AI platform, integrating proprietary data and expertise from key partners to identify valuable molecular mechanisms and accelerate drug development. Lomond aims to lead in creating novel treatments for hematologic malignancies, aiming to maximize clinical benefits.

Lomonitinib, one of the company’s lead programs, targets FLT3 mutations which are prevalent in AML. Existing FLT3 inhibitors often face limitations due to resistance mutations or adverse safety profiles. Lomonitinib has shown anti-tumor activity in both cellular assays and animal models against these mutations and is currently under evaluation in a Phase 1b trial to assess its safety, tolerability, and efficacy.

Another promising candidate, lonitoclax, is being developed for the treatment of AML and CLL. This inhibitor targets the BCL-2 protein, which is often overexpressed in cancers. Lonitoclax has demonstrated potent anti-tumor activity and superior selectivity compared to venetoclax, the only approved BCL-2 inhibitor for these indications. In preclinical and clinical studies, lonitoclax has shown fewer adverse effects on non-cancerous immune cells, suggesting a better safety profile and potential for outpatient treatment.

Lomond Therapeutics is also working on a menin inhibitor for AML treatment, licensed from Bala Therapeutics, Inc. Menin is crucial in gene regulation related to cell growth. The company plans to select a menin inhibitor candidate for further study by the end of 2024.

In sum, Lomond Therapeutics is making significant strides in developing innovative treatments for hematologic cancers, supported by recent strategic financial and corporate developments.