Wednesday, November 19, 2008

Saturn Capital funds $6M for Knopp Neurosciences

By Mass High Tech Staff

Boston-based broker and dealer Saturn Capital and its affiliated venture capital fund have raised more than $6 million for a neurosciences startup.

On Wednesday, Pittsburgh-based Knopp Neurosciences Inc. announced its current investors had exercised $6.6 million in Series B2 warrants, lifting the company’s overall capitalization to $27 million. This completes Knopp’s Series B2 Financing.

Saturn Capital, which has led Knopp’s financing, acted as the placement agent for the transaction. Its affiliated venture capital fund, Saturn Partners II, participated. The cash raised will be targeted for researching the mitochondrial causes of neurodegeneration. More specifically, it will fund the completion of an ongoing Phase 2 study of its drug KNS-760704, applied to treat amyotrophic lateral sclerosis (ALS). Better known as Lou Gehrig’s disease or Charcot’s sclerosis, ALS is a fast-moving neurodegenerative ailment. Its chief characteristics are progressive muscle weakness and deterioration. There is only one drug approved to treat the disease, and after ALS manifests itself, sufferers usually die in from three to five years.

The KNS-760704 is Knopp’s lead technology. Knopp explained in a statement that KNS-760704 is a small molecule that improves mitochondrial function and offers cellular protection in stressed cells. 

According to its website, the Saturn Partners II fund’s objective is to realize high return through “proprietary early-stage investments” in software and information technology, biotechnology, and advanced-materials manufacturing. As of Dec. 31, 2007, the Saturn Partners II fund had a cumulative internal rate of return of 40 percent.