Investment & Fund Management

UNION Therapeutics, a Danish bio-pharmaceutical company founded in 2011, faced a significant challenge in advancing its research on niclosamide, a compound with potential applications in treating inflammatory and infectious diseases. Initially, the company had secured investment through the EIF’s Business Angels programme in 2017, which enabled them to initiate clinical trials. However, the onset of the COVID-19 pandemic in 2020 shifted their focus dramatically when niclosamide was identified as a potent FDA-approved inhibitor of SARS-CoV-2, the virus responsible for COVID-19.

In response to the pandemic, UNION Therapeutics pivoted its research efforts to test the salt form of niclosamide as a treatment for COVID-19, collaborating with Institut Pasteur Korea. This strategic shift was crucial as their ongoing phase 2 study for atopic dermatitis had slowed due to lockdowns, limiting patient access to clinics. The company worked diligently to raise capital and secure approval from the Danish medicinal authority to commence human studies for the COVID-19 treatment.

The unique mechanism of niclosamide, which acts on host cells rather than the virus itself, presents a lower risk of the virus developing resistance. UNION Therapeutics is optimistic about the developments and is preparing to announce the initiation of patient studies soon. The potential for niclosamide to be stockpiled and scaled across Europe could play a significant role in mitigating future lockdowns and the associated economic impacts.