Cereno Scientific Secures 100 MSEK Financing to Advance HDAC Inhibitor Pipeline for Rare Cardiovascular and Pulmonary Diseases
Key Insights
Cereno Scientific (search) secured 100 MSEK through loan financing agreements with existing and new investors to advance its HDAC (search) inhibitor portfolio targeting rare cardiovascular and pulmonary diseases.
The funding will support Phase IIb trial initiation for CS1 in pulmonary arterial hypertension (search) and Phase II development for CS014 in idiopathic pulmonary fibrosis (search).
The company's lead candidate CS1 demonstrated favorable safety profile and positive clinical efficacy parameters in a completed Phase IIa trial for PAH patients.
Cereno Scientific (search) announced securing 100 MSEK in loan financing to advance its pipeline of HDAC (search) inhibitor drug candidates targeting rare cardiovascular and pulmonary diseases. The Swedish biotech company entered into financing agreements with both existing investors Fenja Capital (search) II A/S and Arena Investors (search), LP, as well as new Danish investors Venusat ApS (search) and SAJ Finans ApS (search).
Strategic Financing Structure
The financing comprises three components: a new 25 MSEK loan from the new financiers, an advance payout of 50 MSEK (Tranche 2) from original financiers, and conversion of 25 MSEK in outstanding convertibles into new B-shares at 6.09 SEK per share. The convertible conversion will increase the company's shares by 4,105,090 B-shares, representing approximately 1.43% dilution of outstanding shares.
"This is an important continuation of the strategic financing that we completed in November 2024, allowing us to maintain flexibility while providing runway to reach key clinical and regulatory milestones for CS1 and CS014," said Sten R. Sörensen, CEO of Cereno Scientific (search).
Clinical Pipeline Development
The funding will primarily support advancing CS1 to Phase IIb trial initiation through regulatory documentation preparation and approvals. CS1, an HDAC (search) inhibitor working through epigenetic modulation, completed a Phase IIa trial in pulmonary arterial hypertension (search) (PAH) patients, demonstrating favorable safety profile, good tolerability, and positive impact on exploratory clinical efficacy parameters.
The company will also initiate a Phase II program for CS014, a new chemical entity HDAC (search) inhibitor with multimodal mechanism of action targeting rare cardiovascular and pulmonary diseases including idiopathic pulmonary fibrosis (search) (IPF). CS014 recently completed Phase I development.
Expanded Access and Preclinical Programs
Cereno Scientific (search) will progress its Expanded Access Program (EAP), including the Fluidda sub-study, to gain insights into long-term CS1 use in PAH patients. The program enables patients who completed the Phase IIa trial to continue accessing CS1.
The company is also advancing CS585, a preclinical oral prostacyclin (IP) receptor agonist that has demonstrated potential to significantly improve disease mechanisms relevant to cardiovascular diseases. Preclinical data indicates CS585 could potentially be used for thrombosis prevention without increased bleeding risk and pulmonary hypertension.
Market Position and Unmet Medical Need
Cereno Scientific (search) positions itself as pioneering epigenetically modulating therapies for rare cardiovascular and pulmonary diseases with high unmet medical needs. The company's HDAC (search) inhibitor portfolio employs an innovative disease-modifying approach to address root mechanisms of rare and fatal diseases through epigenetic modulation.
"Cereno Scientific (search) has great momentum with an impressive list of milestones achieved during the past year, setting us up for future success," said Jeppe Øvlesen, Chair of the Board at Cereno Scientific. The financing establishes favorable conditions for business development activities, including partnership discussions for the company's development programs.
Financial Terms and Timeline
All outstanding loans carry an annual interest rate of STIBOR plus 11 percentage points, with repayment scheduled for April 30, 2026. The new loan includes a setup fee of approximately 3.1 MSEK. Following the conversion, original financiers retain outstanding convertibles worth 50 MSEK.
The company, headquartered in Gothenburg, Sweden, with a US subsidiary in Boston, Massachusetts, trades on Nasdaq First North under ticker CRNO B. The financing enables continued focus on long-term value creation and responsible capital allocation to support clinical development in focus indications with persistent unmet medical needs.