NeuroMed Technologies Inc. pulled in $32 million in a third round of financing to further develop its preclinical pain therapy pipeline.

The Vancouver, British Columbia-based company, which labeled the venture capital outlay as among the biggest private investment in Canada in 2003, said the funding provides three-years worth of cash reserves.

"It's been a rather challenging financing market over 2003, but if you look at this deal in the context of Canada, it is one of the top-10 largest private equity deals done this year," NeuroMed President and CEO Natalie Dakers told BioWorld Today. "If you couple that in the context of a difficult financing market, it speaks to the unique opportunity that NeuroMed offers."

She noted that the company's focus on pain products that avoid side effects associated with opioids and NSAIDS factored into its ability to close the Series C round. NeuroMed has raised $49 million to date.

Among specific uses for the latest funding, the company plans to push its lead drug candidate into the clinic and eventually move it through a Phase II program. NeuroMed has completed preclinical studies on NMED-160, for which it plans to file an investigational new drug application this year and move into clinical trials for pain next year.

"The key was to raise enough money to get our lead compound through Phase II," Dakers said, adding that the N-type calcium channel blocker can be dispensed orally thereby avoiding administration limitations of peptide painkillers such as Ziconotide (Elan Corp. plc).

She also said the drug has a broad spectrum of pain relief, through neuropathic pain and inflammatory pain. NeuroMed's N-type calcium channel program also has produced a backup pain compound, as well as a product for anxiety that has completed proof-of-principle animal studies.

The company expects to complete NMED-160's clinical proof of principle on its own before entering a pharmaceutical partnership for the compound. Its earlier-stage products could be partnered sooner, though.

NeuroMed's other pipeline program involves T-type calcium channels, for which it has identified gene targets for the development of drugs to treat epilepsy. Outside of its core focus, its research has led to the development of a preclinical product for stroke, though Dakers said it could be developed through a pharmaceutical alliance, if at all.

Boston-based MPM Capital led the financing, its first Canadian investment, and in the process gained seats on NeuroMed's board for Kurt Wheeler and Ilan Zipkin. Other new investors included Neuro Discovery LP, also of Vancouver; TriFund Capital Ltd., of Vancouver; and Cogene Biotech Ventures, of Houston. Returning investors included GrowthWorks Capital, of Vancouver; MDS Capital, of Toronto; BDC Venture Capital, an investment arm of the Business Development Bank of Canada; and the Royal Bank of Canada.