AeroRx Therapeutics, Inc., a clinical-stage biopharmaceutical company focused on developing proprietary nebulized combination therapies for chronic respiratory diseases, announced the successful closing of a $21 million Series A financing. The funding round was led by Avalon BioVentures, with additional participation from Correlation Ventures, Alexandria Venture Investments, and other investors.
The proceeds will be used to advance AERO-007, the company’s lead investigational candidate, into late-stage clinical development. AERO-007 represents the first nebulized long-acting beta2 agonist (LABA) and long-acting muscarinic antagonist (LAMA) combination therapy in development as a potential first-line maintenance treatment for chronic obstructive pulmonary disease (COPD).
Addressing an Unmet Need in COPD Management
COPD remains a leading cause of morbidity and mortality worldwide, affecting over 390 million people globally. While dual bronchodilation with LABA/LAMA inhalers has become the standard of care, millions of patients continue to experience inadequate symptom control due to improper inhaler technique, physical limitations, or disease progression that limits inspiratory flow.
AeroRx aims to address these gaps by developing nebulized delivery systems that provide consistent, full-dose delivery independent of patient effort. The company’s proprietary technology enables combination therapies that can be administered conveniently and reliably through modern, portable nebulizer systems—an approach that could dramatically improve treatment adherence and outcomes in patients with moderate to severe COPD.
Promising Phase 2a Results
The company’s Phase 2a clinical study of AERO-007 demonstrated favorable safety, tolerability, and efficacy profiles. The trial was a randomized, double-blind, placebo-controlled, single-dose, three-period crossover study that enrolled 16 adults with moderate-to-severe COPD.
Results from the study showed that both low- and high-dose treatments of AERO-007 provided clinically meaningful, statistically significant improvements in forced expiratory volume in one second (FEV₁) compared to placebo—the gold-standard measure of lung function improvement in COPD.
Importantly, the therapy demonstrated rapid onset and sustained bronchodilation lasting up to 24 hours, supporting its potential as a once-daily treatment. Safety and tolerability outcomes were also encouraging, with systemic drug exposure and adverse event profiles comparable to approved LABA and LAMA therapies used individually.
These results suggest that AERO-007 can achieve the desired dual bronchodilation effects while maintaining a favorable safety margin, setting the stage for further dose-optimization and long-term efficacy studies.
Next Steps: Advancing Toward Late-Stage Trials
“With this Series A financing, we are well positioned to advance AERO-007 into a Phase 2b dose-optimization study and prepare for late-stage, NDA-enabling development,” said Ahmet Tutuncu, M.D., Ph.D., Co-founder and Chief Executive Officer of AeroRx Therapeutics. “Our Phase 2a data strongly support AERO-007’s potential as a once-daily nebulized LABA/LAMA combination designed to meet the needs of underserved COPD patients. Many individuals simply cannot use handheld inhalers effectively, and we believe AERO-007 can provide a solution that delivers both efficacy and ease of use.”
AeroRx’s upcoming Phase 2b study will aim to refine the optimal dosing regimen and confirm the durability of therapeutic benefit, paving the way for pivotal clinical trials. The company’s development strategy aligns with current Global Initiative for Chronic Obstructive Lung Disease (GOLD) guidelines, which recommend LABA/LAMA combination therapy as the preferred maintenance approach for patients with persistent symptoms or exacerbations.
Investor Confidence in a Differentiated Approach
“AeroRx has the opportunity to deliver meaningful clinical benefit by bringing the preferred guideline therapy to patients in a nebulized form that is designed for full dosing and improved adherence,” said Jay Lichter, Ph.D., Managing Partner at Avalon BioVentures. “Dual bronchodilation via handheld inhalers remains the standard of care, but many patients are poorly controlled due to challenges with inhaler technique. AeroRx’s platform has the potential to close that critical gap in COPD management.”
Avalon BioVentures, known for backing innovative life sciences startups, emphasized that the investment reflects confidence in both the company’s scientific foundation and its ability to execute a scalable clinical development plan.
A Step Forward for COPD Patients
Inhaled therapies have long been the cornerstone of COPD management, but patient adherence and effective drug delivery continue to be significant barriers to optimal care. AeroRx’s focus on nebulized combination treatments provides a new pathway for improving outcomes among patients who are unable to use traditional inhalers effectively—particularly elderly individuals and those with advanced disease.
By developing AERO-007 as a once-daily maintenance therapy, AeroRx is positioning itself to potentially transform the standard of care for millions of patients worldwide. If successful, AERO-007 could become the first nebulized LABA/LAMA approved for COPD, providing physicians and patients with a much-needed new option for long-term disease control.
Looking Ahead
With its newly secured Series A funding, strong Phase 2a results, and support from leading biotech investors, AeroRx Therapeutics is entering a pivotal phase in its mission to redefine respiratory care. The company’s innovative combination of scientific rigor, patient-focused design, and delivery innovation positions it as a frontrunner in the next generation of inhaled therapies.
As AeroRx prepares for Phase 2b development, the company continues to build momentum toward its goal: offering a safe, effective, and patient-friendly therapy that addresses the unmet needs of those living with chronic obstructive pulmonary disease.
