Blake Insomnia Therapeutics Inc is preparing to launch a fundraising drive to complete Phase II clinical testing of its patent-pending ZLX-1 compound for treating stress-related insomnia. The company has compiled a shortlist of appropriate investors to approach for funding.

Since the ZLX-1 patent application covers multiple active ingredient combinations, Phase II clinical testing will determine which combination and dosage will deliver the most potent effect. Completing Phase II clinical testing will require approximately $5 million. After successful completion of Phase II, the company will seek an additional $10 million for Phase Phase III testing, the final step required to receive FDA approval. Phase III trials involve widespread testing of the compound for potential side effects.

Blake Insomnia Therapeutics CEO Birger Jan Olsen says in a release: “We are proceeding according to plan and we are now ready to meet with potential financial partners to fund Phase II clinical testing. We remain optimistic that we will be able to complete the clinical phase quickly, so we can bring this promising therapy to market.”