citybiz+ Annapolis-Based Alphyn Biologics Closes $3.3 Million Series A

Alphyn Biologics, a clinical-stage dermatology company, has closed a $3.3 million Series A round led by Queen City Angels, with participation from the Angel Physicians Fund and Serial Stage Venture Partners.

So far, Alphyn, which has dual headquarters in Annapolis, Md., and Cincinnati, Ohio, has raised $6.7 million, including a seed round of over $1 million, and a second round of more than $2 million.

“This financing allows us to begin an accelerated global multicenter clinical trial program to support a new drug application with the FDA and other national health authorities,” Alphyn CEO Neal Koller. Alphyn addresses infectious skin diseases, including some drug-resistant variants, and skin cancer. Its Phase2a clinical trial is for AB-101a, the company’s lead candidate to treat mild-to-moderate atopic dermatitis.

Specialist Investors

Queen City Angels, based in Cincinnati, Ohio, is a grouping of former CEOs and successful entrepreneurs and physicians. It is led by cofounder and CEO Tony Shipley, who has helmed at least four companies. The firm focuses on healthcare startups. Its recent portfolio investments include Cloverleaf, Akru, Resonado Labs and Kurome Therapeutics.

Angel Physicians Fund is an initiative of medical professionals, and invests in healthcare startups. Its portfolio firms span several areas — from one developing biopolymer heart valves that do not require prolonged anticoagulation to one that develops drugs to break down the inherent resistance in cancer cells. Its portfolio firms include PanTher Therapeutis, Elucid, Moray Medical, S4 Medical and Foldax.

Ambitious Goals

Alphyn, which began operations in 2020, is developing so-called multitarget therapeutics for severe and prevalent skin diseases. Its key base is a platform called AB-101, which originated with cofounder Dr. Gary Pekoe’s work on the FDA-approved drug Bactroban. The platform has multiple bioactive compounds, offering potentially multiple mechanisms of action to support a pipeline of dermatologic therapeutics.

AB-101a, the company’s lead product candidate in Phase 2a clinical trials, is a topical treatment for atopic dermatitis, the most common form of eczema. The non-steroidal drug candidate is believed to offer a “4-in-1” solution, enabling treatment of atopic dermatitis with a single therapeutic, rather than multiple drugs. It is being studied for use in pediatrics, as well as in adult populations.

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“Current atopic dermatitis treatments are plagued with numerous safety and side effect problems. They frequently fail to address all the contributors to the disease,” said Tony Shipley of Queen City Angels. “AB-101a is urgently needed in the dermatology market, and we look forward to working with Alphyn to advance its technology through clinical trials and ultimately improve the lives of the millions of AD suffers.”

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Led by 30-year Veteran

Neal Koller is a 30-year medical industry veteran. He has helmed six life sciences firms, steering them to milestone achievements or exits. He began his career at Wyeth Pharmaceuticals. Koller previously led PGT Holdings, Perthera and Plurogen Therapeutics.