XyloCor Secures $67.5M Series B, Revises Gene Therapy Trial Plans

XyloCor Therapeutics has successfully raised $67.5 million in a Series B funding round to support the further development of its cardiac gene therapy. This cash injection is aimed at advancing two Phase 2 clinical trials for its primary candidate, XC001, also known as encoberminogene rezmadenovec. XC001 is a gene therapy designed to deliver the VEGF gene to the heart, encouraging the growth of new blood vessels, which could potentially alleviate conditions related to poor blood flow.

The first of these trials will focus on patients suffering from refractory angina, a form of heart pain that does not respond to conventional medical treatments or procedures like stent placements or bypass surgeries. In this study, XC001 will be administered directly into the cardiac tissue using a specialized catheter called the Extroducer, which XyloCor acquired the rights to from SmartCella earlier this year. The direct administration of the gene therapy into the heart tissue is expected to provide a more localized treatment effect, allowing for lower dosages and potentially reducing side effects.

The second trial will target patients undergoing coronary artery bypass surgery. This trial will focus on cases where complete revascularization is not expected to be achieved with the surgery alone. The gene therapy will be injected directly into the heart areas anticipated to remain ischemic even after the surgical procedure. This will be done using a standard syringe by the surgeon performing the operation.

XyloCor’s Chief Executive Officer, Al Gianchetti, highlighted that the trials will each enroll approximately 100 patients. The effectiveness of the therapy will be evaluated using cardiac imaging to measure the size reduction of the ischemic areas and will also assess clinical outcomes such as improvements in exercise capacity and reduction in chest pain. Results from both studies are anticipated toward the end of next year.

Gianchetti emphasized the significant market potential for XyloCor’s gene therapy, noting that refractory angina affects about 1.5 million individuals in the United States alone. However, not all patients may qualify for this treatment due to various eligibility criteria. When it comes to bypass surgeries, approximately 400,000 such procedures are conducted annually in the US, with about one-third resulting in incomplete revascularization.

While it is premature to determine the commercial pricing for XC001, Gianchetti suggested that it would likely be more affordable than some of the gene therapies available for rare diseases, which can be extremely costly.

The Series B funding round was spearheaded by Jeito Capital, a private equity fund that has recently invested in XyloCor. Existing investors, including EQT, Fountain Healthcare Partners, and Lumira Ventures, also participated in the round. Jeito Capital, based in Paris with €534 million under management, has expressed confidence in XyloCor’s focus on addressing significant unmet medical needs. Rachel Mears, a partner at Jeito, will join XyloCor's board, bringing her extensive experience, including her past role as Vice President of R&D at GSK.

Beyond the clinical trials, the newly acquired funds will support advancements in XyloCor’s manufacturing processes and overall development efforts, reinforcing the company's commitment to pioneering treatments for cardiac conditions. With these trials, XyloCor Therapeutics aims to explore the vast potential of its gene therapy, potentially offering new hope to patients with limited treatment options.