Gulf South Angels, a New Orleans-based venture investment group, announced Tuesday its plans to invest in South Rampart Pharma, a local biotech startup developing a novel non-opioid pain medication. The investment will support the company's lead candidate SRP-001, which has successfully completed Phase One FDA clinical trials and received fast-track designation for Phase Two studies.
South Rampart Pharma's experimental drug represents a potential breakthrough in the growing market for non-addictive pain treatments, addressing a critical unmet need in pain management.
Fast-Tracked Development Path
SRP-001 has demonstrated promising safety and dosage profiles in Phase One testing with smaller human cohorts. The FDA's fast-track designation will accelerate the drug's development timeline, allowing South Rampart to proceed more rapidly to Phase Two trials involving larger patient populations.
Dr. Hernan Bazan, a vascular surgeon at Ochsner Health and co-founder of South Rampart Pharma, emphasized the significance of the upcoming trials: "Phase Two testing is crucial not only to evaluate efficacy and side effects but to confirm our proof of concept for this novel mechanism of action."
The company has engaged Todd Bertoch, an experienced pain treatment specialist who previously oversaw similar trials for Vertex Pharmaceuticals, to manage the Phase Two program.
Distinctive Mechanism of Action
What distinguishes SRP-001 from other non-opioid pain medications is its central nervous system mechanism of action, rather than targeting peripheral pain-sensing neurons. This approach potentially offers effective pain relief without the addictive properties associated with opioids.
The drug's development comes at a critical time in pain management. In January 2024, Vertex Pharmaceuticals received FDA approval for Suzetrigine (marketed as Journavx), the first new class of non-opioid pain medication authorized in over two decades for moderate-to-severe acute pain.
"Our compound offers a complementary approach to Journavx, with potential applications across various pain conditions," explained Dr. Bazan. "By targeting central pain pathways differently, we believe SRP-001 could provide physicians with another important tool in their pain management arsenal."
Funding and Investment Strategy
Founded in 2016 as a spin-out from the LSU Health School of Medicine, South Rampart Pharma has raised $9 million to date through National Institutes of Health grants, Louisiana's research and development tax credit program, and equity investment from Ochsner Health's venture arm.
In January, the company launched a Series A funding round seeking at least $8.5 million to finance the Phase Two clinical trials. Ochsner Health has demonstrated significant confidence in the venture, with CEO Pete November joining South Rampart's board of directors earlier this month.
Mike Eckert, Chairman of Gulf South Angels, noted the importance of Ochsner's involvement: "It brings immediate credibility when a company like Ochsner steps up." The exact investment amount from Gulf South Angels remains undetermined as the group syndicates the opportunity across its national network of similar organizations.
Pharmaceutical Development Economics
The pharmaceutical development landscape presents high-risk, high-reward opportunities for investors. According to Eckert, companies with promising candidates like SRP-001 typically command valuations between $300-800 million after successful Phase Two trials, with potential for acquisition by established pharmaceutical companies.
"With drug companies it's pretty binary: you're either going to hit a home run or you're going to lose your money," Eckert stated. He noted that Gulf South Angels, which evolved from NO/LA Angels Network founded in 2014, has achieved an average 26% return on investments across its portfolio—more than double the S&P 500's annual average over the past decade.
The market impact of successful non-opioid pain medications can be substantial. Eckert highlighted that Vertex's shares increased approximately 10% following their Phase Two success announcement, adding roughly $10 billion to the company's market value.
Addressing the Pain Management Crisis
The development of non-addictive pain medications has taken on increased urgency amid the ongoing opioid epidemic. Current pain management options often present physicians and patients with difficult choices between effective relief and addiction risk.
SRP-001 represents part of a broader industry shift toward developing alternatives that can provide effective pain control without contributing to substance abuse and dependency issues. If successful in Phase Two trials, the drug could eventually offer healthcare providers an important new option in addressing the complex challenges of pain management.
For South Rampart Pharma, the path forward involves completing the current funding round and advancing into the critical efficacy testing phase that will determine the drug's commercial viability and potential impact on patient care.
