NeuShen Therapeutics has raised more than $80 million in a series B that will help it advance its pipeline of small molecules for central nervous system (CNS) disorders, including a selective M4 receptor modulator that could eventually compete with Bristol Myers Squibb's Cobenfy (xanomeline/trospium) in schizophrenia.The oversubscribed round was backed by B Capital, Legend Capital, Matrix Partners China, TruMed Investment and SSCI, with existing investor Lilly Asia Ventures increasing its stake. NeuShen closed a series pre-A round of about $20 million in 2022.According to one representative of participating institutional investors in the latest round, NeuShen "has built a unique competitive moat in the CNS space through its strong scientific foundation, differentiated R&D approaches, and forward-looking global strategies."The Shanghai- and Boston-based biotech's assets include NS-136 (laviclidine), a highly selective M4 positive allosteric modulator in Phase II for acute schizophrenia in China. The programme is also moving into Alzheimer's disease agitation, with Phase II studies cleared to start in China and the US; enrollment is expected to begin shortly.The muscarinic approach to schizophrenia was ushered in by the 2024 approval of Cobenfy, which was the first, and so far remains the only, drug in its class cleared for schizophrenia. Unlike Cobenfy's broader muscarinic activity — it acts primarily through M1 and M4 muscarinic receptors — NS-136 is designed to selectively modulate M4.NeuShen has two other clinical-stage programmes. NS-079, a non-hallucinogenic 5-HT2A receptor partial agonist, is being tested in a first-in-human study in Australia for treatment-resistant depression. The company said its compound operates via neuroplasticity modulation to produce "rapid and durable antidepressant effects while significantly reducing safety risks associated with traditional hallucinogenic compounds."Meanwhile, NS-041 (zolankalner), a selective KCNQ2/3 channel opener, is in a Phase II trial for focal-onset seizures, while a Phase II study in major depressive disorder is being prepared.