Clene Secures $10M Funding to Advance ALS and Neurodegenerative Disease Treatments
December 19th, 2024 5:26 PM
By: Newsworthy Staff
Clene Inc. has obtained a $10 million debt facility to support the development of its CNM-Au8 treatment for ALS and other neurodegenerative diseases. This funding will help address FDA data requirements for regulatory approval and potentially accelerate the path to market for innovative therapies.

Clene Inc. (NASDAQ: CLNN), a late-stage biopharmaceutical company, has secured a $10 million debt facility to advance its promising treatments for amyotrophic lateral sclerosis (ALS) and other neurodegenerative diseases. This financial boost comes at a critical time as the company works to meet FDA data requirements for regulatory approval of its lead candidate, CNM-Au8.
The debt facility, set to close by December 20, 2024, involves three affiliated entities and takes the form of an 18-month secured, partially convertible note. With a 12% fixed interest rate and an interest-only period for the first year, the terms reflect the high-risk, high-reward nature of biotechnology investments. Notably, 65% of the note is convertible into common stock at $5.67 per share, representing a substantial 130% premium over the stock's closing price on the day of signing. This premium suggests strong investor confidence in Clene's potential for significant growth.
The funding is earmarked primarily for the development of CNM-Au8, Clene's investigational first-in-class therapy that aims to improve central nervous system cell survival and function. CNM-Au8 works by targeting mitochondrial function and the NAD pathway while reducing oxidative stress, a mechanism that could prove crucial in treating a range of neurodegenerative conditions.
This financial injection is particularly significant for patients suffering from ALS and other neurodegenerative diseases, as it could accelerate the development and potential approval of new treatment options. ALS, a progressive nervous system disease that causes loss of muscle control, currently has limited treatment options. The development of CNM-Au8 represents hope for improved quality of life and potentially extended survival for patients.
For the broader biotech industry, Clene's ability to secure this funding in the current economic climate is noteworthy. It underscores the continued investor interest in companies developing treatments for high-unmet-need conditions, even in a challenging market environment. The structure of the deal, with its convertible component and premium pricing, may also serve as a model for other biotech firms seeking to raise capital while minimizing immediate dilution to existing shareholders.
The implications of this funding extend beyond Clene and its immediate stakeholders. Advances in treating neurodegenerative diseases could have far-reaching societal impacts, potentially reducing the economic burden of these conditions on healthcare systems and improving outcomes for millions of patients worldwide. As populations age in many countries, effective treatments for diseases like ALS, Parkinson's, and multiple sclerosis become increasingly crucial.
Clene's progress also highlights the importance of continued investment in biotech research and development. The company's focus on improving mitochondrial health and protecting neuronal function represents a novel approach to treating neurodegenerative diseases, one that could open new avenues for research across the field.
As Clene moves forward with its development plans, the biotech community and patients alike will be watching closely. The success of CNM-Au8 could not only provide new hope for those affected by ALS and other neurodegenerative diseases but also validate a new therapeutic approach that could spur further innovation in the treatment of these challenging conditions.
Source Statement
This news article relied primarily on a press release disributed by InvestorBrandNetwork (IBN). You can read the source press release here,
