Neuracle Genetics, a company specializing in adeno-associated virus (AAV) vector-based gene therapy, said Thursday that it has raised 30 billion won ($26.9 million) from institutional investors for developing gene therapy.

In 2019, the company received a 15.9 billion won investment, and its total receipt of funding increased to 459 billion won.

Neuracle Genetics, established in May 2018, has been developing gene therapy for ophthalmic diseases, including age-related macular degeneration, chronic neuropathic pain, and cranial neuropathies such as Alzheimer's disease.

The initial funding was spent conducting a pre-clinical study of its gene therapy NG101 for cranial nerve diseases. The company plans to receive approval for its phase 1/2a clinical trial intends to investigate new drug candidates for wet age-related macular diseases from the U.S. Food and Drug Administration this year.

Last September, Neuracle Genetics signed a 10 billion won deal with Reyon Pharmaceutical, securing a partner with good manufacturing practice to co-develop and produce NG101, the company said.

"While series A investment is based on the possibility of our AAV vector-based gene therapy business model, series B funding is based on major pipelines, including wet age-related macular degeneration treatment NG101 and neuropathic pain treatment NG201," Neuracle Genetics CEO Kim Jong-muk said.

CEO Kim added that Neuracle Genetics has discovered AAV vector-based gene therapy candidates for two indications in just three years and secured platforms that showed excellent gene expression efficiency.

The most important point is how efficiently and continuously the company can make vascular endothelial growth factor (VEGF)-binding protein in the patient's eye, which depends on the performance of the gene delivery system, he went on to say.

"NG101 is expected to show the same therapeutic effect with lower doses compared to its rival drugs as it uses our high-efficiency AAV gene delivery technology," Kim said. "We believe using lower dose could lower the possibility of side effects caused by the drug and production cost."

Gene therapy, which treats disease by delivering genes to the human body through a delivery system, was first approved by the European Medicines Agency in 2012. Five years later, the U.S. approved three gene therapies and also authorized another gene therapy in 2019.