Latigo Biotherapeutics has secured $150 million in Series B financing to advance its pipeline of non-opioid pain medications, with a focus on pushing its lead candidate toward Phase III clinical trials. The funding round was led by Asset manager Blue Owl Capital, with participation from more than half a dozen new investors alongside existing backers including 5AM Ventures, Foresite Capital, Alexandria Venture Investments, and Westlake Village BioPartners.
The financing comes at a pivotal time in the pain management landscape, as the industry seeks alternatives to opioids amid the ongoing overdose crisis. Latigo's research primarily targets NaV1.8, a protein channel that transmits pain signals to the brain when the body experiences injury.
Strategic Positioning in the NaV1.8 Space
Latigo enters a market recently pioneered by Vertex Pharmaceuticals, whose NaV1.8 inhibitor Journavx became the first FDA-approved medication targeting this pathway in January 2023. While Vertex has established first-mover advantage, Latigo CEO Nima Farzan believes there's substantial opportunity for differentiation.
"We're looking to bring forward multiple best-in-class options for both acute and chronic pain," said Farzan. The company sees competitive advantages in two key areas: speed of pain relief and broader patient applicability with potentially fewer drug-drug interactions.
Kevin Raidy, senior managing director at Blue Owl Capital, has joined Latigo's board of directors as part of the investment. The substantial funding provides Latigo with operational runway into next year, allowing the company to navigate the current challenging biotech IPO environment strategically.
Clinical Pipeline Progress
Latigo's most advanced candidate, LTG-001, is currently in Phase 2 clinical trials evaluating its efficacy in alleviating acute pain following wisdom teeth removal. Results from this study are expected in the second half of 2023.
The company has already planned late-stage trials that will test LTG-001 in patients recovering from abdominoplasty ("tummy tuck") procedures and bunion removal surgeries, with data anticipated in early 2024.
Beyond its lead program, Latigo is developing a portfolio of NaV1.8 inhibitors targeting chronic pain:
- LTG-305 has entered early-stage clinical studies in healthy volunteers
- LTG-321, described as a "follow-on" compound with "unique scaffolding," is in preclinical development and may offer enhanced potency compared to earlier candidates
Addressing Significant Unmet Needs
The pain management market represents a substantial opportunity, with tens of millions of Americans suffering from chronic pain and millions more experiencing acute pain following surgeries or injuries annually. Current treatment options often rely heavily on opioids, which carry significant risks of addiction and abuse.
Recent legislative changes reflect growing recognition of this unmet need. A new federal law implemented this year aims to amend Medicare to improve patient access to and affordability of non-opioid pain medications.
"Healthcare experts recognize that non-addictive alternatives to opioids could be extremely valuable given the U.S. remains mired in an opioid overdose crisis," Farzan noted. "Our goal is to provide effective options that don't carry the same risks."
Competitive Landscape and Commercial Considerations
While competing against Vertex Pharmaceuticals presents challenges, early commercial indicators for Journavx suggest growing market acceptance of NaV1.8 inhibitors. UnitedHealth Group's pharmacy benefit manager recently placed Journavx on some commercial formularies, and prescription volume increased 14-fold between the first and second weeks of launch.
Farzan acknowledges investor interest is partly driven by Vertex's early success but remains confident in Latigo's differentiated approach. "The good news is that one quarter or two quarters of sales at launch is probably not the biggest thing... especially for a hospital product," he said, noting that Vertex has historically operated in niche markets rather than broad commercial spaces.
The substantial funding provides Latigo flexibility regarding future financing options. "We can take our time. The markets are a little choppy," Farzan explained. "We'll be responsible. We'll take a look. And when we think the backdrop's relevant and interesting, it's something we would consider."
Scientific Mechanism and Differentiation
NaV1.8 inhibitors work fundamentally differently than opioids. When the body experiences injury, NaV1.8 proteins act as cellular alarm systems that transmit pain signals to the brain. By selectively blocking these channels, pain can be reduced without affecting the brain's reward pathways that lead to addiction with opioid medications.
Clinical data to date suggests these medications don't appear to carry the same addictive risks as opioids, making them potentially transformative for pain management. Latigo's strategy involves developing multiple compounds against this target with optimized properties for different pain conditions and patient populations.
The company's substantial financing positions it to generate the comprehensive clinical data needed to potentially bring these innovative treatments to patients suffering from both acute and chronic pain conditions.
