Aerial Biopharma announced this week that it has now closed on $9.5 million of an expected $12 million in Series A financing.
The remainder of the financing is expected to close by the end of the year.
The Morrisville company, which formed in January 2011, is conducting phase 2 clinical trials on its narcolepsy treatment and has licensed a molecule from UNC-Chapel Hill for its pain product.
The funding will allow the company to complete its phase 2 studies and fund manufacturing and early safety work on the pain drug.
The company expects to complete the phase 2 trial and have the results by the second half of this year.
Aerial's drug development team was also behind Addrenex Pharmaceuticals and Neuronex. Addrenex, which is developing drugs for hypertension and attention deficit disorder, was acquired by Shionogi Co. for $29 million in November 2009.
Neuronex, which launched in 2010 and is developing a nasal spray to treat seizure disorders, is being acquired by Acorda Therapeutics in a deal that could provide its investors up to $105 million in milestone payments.
Aerial has also received $500,000 from Rex Healthcare's venture-capital fund, Rex Health Ventures.