Asabys Partners, through its Sabadell Asabys II fund, has participated in a €78 million financing round for Augustine Therapeutics, a biotechnology company developing novel therapies for neuromuscular, neurodegenerative, and cardiometabolic diseases. The oversubscribed Series A round was co-led by Jeito Capital and Novo Holdings, with participation from existing investors including Eli Lilly and Company.
The substantial funding will primarily support the clinical development of Augustine's lead candidate, AGT-100216, which is expected to enter Phase 1/2 proof-of-concept clinical trials for Charcot-Marie-Tooth (CMT) disease in 2025. The financing will also accelerate pipeline expansion for two additional preclinical programs targeting undisclosed neurodegenerative and cardio-metabolic indications.
Novel Approach to HDAC6 Inhibition
Augustine Therapeutics, founded in 2019 as a spin-off from Belgium's VIB-KU Leuven research institute, has developed a next-generation approach to selectively inhibit Histone DeACetylase 6 (HDAC6), an enzyme that plays a key role in cellular processes related to tissue aging. The company's technology selectively inhibits HDAC6 while preserving its beneficial non-catalytic functions.
"The therapeutic potential of HDAC6 is widely recognized in our industry, but previous drug approaches have been sub-optimal, particularly for chronic diseases," explained Gerhard Koenig, newly appointed CEO of Augustine Therapeutics. "At Augustine, we believe we have solved these challenges with a novel non-hydroxamate, non-hydrazide producing chemotype which is highly selective and avoids the typical liabilities of prior chemotypes, unlocking HDAC6 inhibition as a therapeutic approach."
Addressing Significant Unmet Needs in Charcot-Marie-Tooth Disease
Charcot-Marie-Tooth disease is a motor and sensory neuropathy affecting the peripheral nervous system. The progressive condition leads to muscle weakness, sensory loss, deformities, and walking difficulties. Currently, there are limited to no treatment options available for CMT patients.
Dr. Rafaèle Tordjman, Founder and CEO of Jeito Capital, emphasized the significance of the investment: "Through this new investment, Jeito reaffirms its interest in a cutting-edge therapeutic field, where innovation can bring transformative benefits for patients still heavily impacted by the disease. This commitment to the patients is at the core of our mission."
Strategic Investment and Leadership Changes
Coinciding with the financing, Augustine has appointed Gerhard Koenig as CEO. Koenig brings more than 30 years of experience in drug development and a track record of success in the biopharma industry.
The company's board has also expanded with the addition of Mehdi Ainouche from Jeito Capital and Emmanuelle Coutanceau from Novo Holdings as directors. Annette Clancy from Jeito Capital and Marie Schroeder from Novo Holdings will join as board observers. Clara Campàs, co-founding partner of Asabys, continues as a director, while Isabel Jiménez serves as a board observer.
Catalyzing International Investment in Biotech
For Asabys Partners, which previously participated in Augustine's first round of €17 million in 2024, this investment represents a strategic opportunity to attract international funds to the Catalan biotechnology ecosystem.
"It's important that Asabys also makes investments outside of Catalonia and Spain because it allows large European funds, such as Novo and Jeito, to get to know Asabys and, consequently, the Catalan biotechnology ecosystem," explained Isabel Jiménez, senior partner at Asabys. "It's a lever to attract international funds here."
Clara Campàs added that while Asabys invests approximately half of its resources in Spain, primarily in Catalonia, participating in rounds with foreign companies "is strategic for these funds to come here."
Expanding Pipeline Beyond CMT
Beyond its lead program for Charcot-Marie-Tooth disease, Augustine Therapeutics is developing additional applications for its HDAC6 inhibitor platform. The company's approach has shown promise in addressing various neurodegenerative and cardio-metabolic conditions, potentially expanding the impact of its technology to benefit broader patient populations.
Mehdi Ainouche from Jeito Capital noted: "This investment illustrates Augustine's potential for innovation in a therapeutic area where patients have limited to no treatment options. We look forward to our future collaboration, which shares a common ambition: to accelerate clinical development to go faster to patients."
With this substantial financing secured, Augustine Therapeutics is positioned to advance its innovative pipeline and potentially transform treatment paradigms for patients with serious neurological and metabolic conditions.
