Irvine-based NeoTherapeutics Inc., a development-stage biopharmaceutical company, has raised $5 million to expand research at its NeoGene Technologies Inc. subsidiary into how genes work.
“The proceeds will be used to expand our research staff and facility,” said Michelle Glasky, vice president of scientific affairs for NeoTherapeutics.
Currently, the company doesn’t have any full-time scientists working at NeoGene, which is focused on developing drugs to treat neurological, psychiatric and other disorders. Up to now, NeoGene has been working with Olivier Civelli, a University of California, Irvine, researcher known for his work identifying and cloning brain receptors.
Glasky declined to say how many scientists and other workers NeoGene is looking to bring on.
NeoTherapeutics raised the money last week in an offering to institutional investors of preferred stock convertible into a 10% ownership stake in NeoGene.
Since the announcement of the first completed human genomic map in April, NeoGene’s research team has focused on determining the function of a large set of genes called orphan receptors. In conjunction with UCI, NeoGene said it has discovered the functions of three of the nine known orphan genes and has filed patents for the genes, according to Glasky.
The company’s aim is to develop drugs based on the genetic research and partner with a big pharmaceutical company, Glasky said. n