Frank Vinluan , 2025-06-20 17:39:00
Neuropsychiatric disorders need new drugs that offer improvement in safety and efficacy over currently available medicines. Draig Therapeutics has emerged from stealth with $140 million to support mid-stage testing of a lead program that it believes may provide patients with a new alternative.
Draig aims to treat neuro disorders by modulating the interplay between glutamate and GABA, two neurotransmitters whose imbalance is associated with several mood disorders. Lead program DT-101 is a next-generation positive allosteric modulator of AMPA, a glutamate receptor. This receptor is found throughout the brain, making it challenging for drug developers to design molecules that can hit it without causing adverse effects.
According to Draig, DT-101 was designed to effectively modulate AMPA without compromising safety. In a Phase 1a test in more than 60 people, Draig said the drug engaged its target, adding that more details about these results will be presented at an upcoming scientific meeting. But with those encouraging results in hand, Draig is preparing to advance DT-101 into a Phase 2 test in major depressive disorder later this year. The funding will also enable the startup to advance two GABAA receptor modulators toward clinical development next year for “a range of prevalent and underserved neuropsychiatric disorders.”
Draig is the product of a partnership between Cardiff University’s Medicines Discovery Institute and SV Health Investors. The startup is named for the Welsh word for dragon. Draig launched last year supported by seed financing from SV Health Investors and ICG. The startup’s Series A financing announced this week was led by Access Biotechnology. Other participants in the round include Canaan Partners, SR One, Sanofi Ventures, Schroders Capital. SV Health Investors and ICG also joined the round.
“Despite numerous treatments available for neuropsychiatric disorders, a significant unmet need remains with many patients continuing to experience inadequate symptom relief and high rates of relapse,” Liam Ratcliffe, head of Access Biotechnology, said in a prepared statement. “Draig’s differentiated approach, which targets core mechanisms underlying these complex conditions, has the potential to deliver a real breakthrough for patients.”
Here’s a recap of some other recent life sciences financing news:
—Actio Biosciences raised $66 million for clinical development of its two lead programs, both oral small molecules. ABS-1230 is a KCNT1 inhibitor on track to start Phase 1 testing later this year in KCNT1-related epilepsy. ABS-0871, a TRPV4 inhibitor, is being evaluated in a Phase 1 test in Charcot-Marie-Tooth disease type C, a rare muscle disorder. Regeneron Ventures and Deerfield Management co-led the Series B financing for San Diego-based Actio.
—Antares Therapeutics revealed $177 million in financing to support a preclinical pipeline of assets from Scorpion Therapeutics. Eli Lilly acquired Scorpion earlier this year to get one drug, a PI3K alpha inhibitor in Phase 1/2 testing for breast cancer. Boston-based Antares spun off from Scorpion with the rest of that company’s drug assets.
—SpliceBio now has $135 million for SB-007, a gene therapy for Stargardt disease, a rare inherited retinal disorder that currently has no approved treatments. The startup’s gene therapy is currently in Phase 1/2 testing. SpliceBio said it will also use the capital to accelerate its pipeline of gene therapy programs in ophthalmology, neurology, and other indications that remain undisclosed. Barcelona-based SpliceBio last raised money in 2022, a €50 million (about $57.5 million) Series A round. The startup’s latest financing, a Series B round, was co-led by new investors EQT Life Sciences and Sanofi Ventures.
—Mosanna Therapeutics launched with $80 million to fund Phase 2 development of its experimental nasal spray treatment for obstructive sleep apnea. The spray, code-named MOS118, targets upper airway muscles responsible for keeping the passage open. It’s catching up to companies such as Apnimed and Incannex Healthcare, both of which have reached pivotal testing with pills designed to target those muscles. Mosanna’s Series A financing was led by Pivotal bioVenture Partners and EGQ Life Sciences.
—AusperBio raised $50 million to continue Phase 2 development of lead program AHB-137, an oligonucleotide intended to offer a functional cure for hepatitis B. In May, the biotech presented clinical data at the annual European Association for the Study of the Liver congress showing 66% of participants in the 16-week arm and 75% of those in the 24-week arm met the main study goal. AusperBio described the latest financing as a Series B+ round. It follows the close of a $73 million Series B round last December.
—Startup Syndeio Biosciences launched and revealed $90 million raised to date to support its therapies intended to repair and enhance synaptic function impaired by central nervous system diseases. The Indianapolis-based biotech’s lead drug candidate, zelquistinel, is in Phase 2 testing for major depressive disorder; Alzheimer’s is the next indication planned for this oral small molecule.
—Allay Therapeutics reeled in $57.5 million as it proceeds with a Phase 2b registrational trial evaluating ATX101, a non-opioid treatment for post-surgical pain. ATX101 pairs the old analgesic bupivacaine with a biopolymer. Placed at the end of standard surgery, ATX101 is intended to provide weeks of pain relief. The Series D round was led by Lightstone Ventures and ClavystBio.
—Antheia, a company with a biomanufacturing platform that it says enables rapid, efficient, and on-demand production of pharmaceutical ingredients, raised $56 million. The company said the funds will enable it to expand commercialization of its first product and launch additional products, pharmaceutical ingredients in essential medicines in or at risk of shortages. Antheia’s Series C round was led by Global Health Investment Corporation.
—Leyden Labs, developer of nasal spray medicines to protect against respiratory viruses, secured €20 million (about $23 million) in venture debt financing from European Investment Bank. The financing falls under the European Commission’s Health Emergency Preparedness and Response Authority (HERA), which supports projects such as medical countermeasures for pandemics. Leyden Labs’ lead program is in clinical development as a potential way to protect against pan-influenza, including avian influenza. Leyden Labs launched during the Covid-19 pandemic, formed by veterans from Johnson & Johnson.
—Kamari Pharma reeled in $23 million to start clinical testing of KM023, an oral TRPV3 inhibitor in development for three rare genetic skin diseases: Olmstead syndrome, severe keratoderma, and ichthyosis. Kamari’s Series A round was co-led by new investor BRM Group and earlier investor Pontifax.
—Khosla Ventures led a $40 million Series A investment in Vivodyne, a startup developing technology intended to replace animal testing in drug research. Vivodyne says its platform uses robotics to grow human tissue and artificial intelligence generates clinically predictive human datasets. The financing will support a 23,000 square-foot robotic laboratory in San Francisco.
—Vima Therapeutics launched with $60 million to develop oral drugs for movement disorders. Lead Vima drug candidate VIM0423, which targets muscarinic cholinergic receptors in the brain, is in Phase 1 testing for dystonia. Phase 2 testing is planned for the fourth quarter of this year. The Cambridge, Massachusetts-based startup’s Series A financing was led by Atlas Venture.
—GRIN Therapeutics closed $140 million as it prepares for Phase 3 testing of radiprodil, a potential treatment for GRIN-related neurodevelopmental disorders (GRIN-NDD). These disorders, which stem from mutations to the GRIN gene, manifest as NDDs and epilepsies. Radiprodil is a small molecule designed to selectively modulate the GluN2b subunit of the NMDA receptor; some NDDs and epilepsies are associated with excessive activation of this receptor. The Series D financing is comprised of investment from Angelini Pharma and Blackstone Life Sciences. Along with that financing, New York-based GRIN Therapeutics also received $50 million up front from Angelini Pharma, which struck a deal for rights to commercialize radiprodil outside of North America. Another $520 million is tied to the achievement of milestones.
—Protein degradation research started in cancer. GlycoEra is among the companies working to bring this modality to autoimmune disease, and the company raised $130 million to bring its lead program, an IgG4 degrader, into human testing later this year. GlycoEra says its platform technology enables it to develop degraders addressing a broad spectrum of extracellular proteins. The Series B financing was led by Novo Holdings.
—Reproductive medicine and women’s health startup ReproNovo raised $65 million for Phase 2 testing of its two lead programs. Leflutrozole is being developed for male infertility; nolasiban is a potential treatment for adenomyosis and embryo implantation. ReproNovo’s Series A round was led by Jeito Capital.
—Cellcentric secured $120 million to continue clinical development of inobrodib, a potential treatment for multiple myeloma. The oral small molecule is an inhibitor of p300 and CBP, two closely related proteins that regulate the development and progression of blood cancers, including multiple myeloma. A Phase 2a dose-optimization study is ongoing in combination with the standard treatment pom-dex. The company said it plans to use the Series C financing to conduct a Phase 2/3 study with the potential to support accelerated FDA approval. The new round was co-led by RA Capital Management and new investor Forbion.
—Pathos AI unveiled $365 million in Series D financing to support its pipeline and its AI technology platform for develops oncology drugs. Pathos’s lead program, P-500, is a brain-penetrating small molecule inhibitor of PMRT5 that is in Phase 2 development for advanced solid tumors, including high-grade glioma and uveal melanoma.
—Therini Bio, a company developing drugs that selectively block fibrin as a way to potentially treat neuroinflammation, raised $39 million to fund Phase 1b testing of lead drug candidate THN391 in Alzheimer’s disease and diabetic macular edema. The capital will also support development of a bispecific drug targeting fibrin and VEGF. The new financing adds to a Series A financing that was announced in 2023 at $36 million. Angelini Ventures and Apollo Health ventures join as new investors in the Sacramento, California-based startup.
—Azafaros raised €132 million (about $147.6 million) as it prepares for Phase 3 testing of lead drug candidate nizubaglustat, a potential treatment for the rare lysosomal storage disorder Niemann-Pick disease type C. Netherlands-based Azafaros, whose approach to rare disease is based on research from Leiden University, plans to start the pivotal test later this year. The new capital will also support expansion of the biotech’s pipeline. Azafaros’s Series B round was led by Jeito Capital and co-led by Forbion Growth.
—Stylus Medicine launched, revealing a total of $85 million raised to date for therapies that capable of in vivo cell engineering. Its first therapeutic candidates will be in vivo CAR T treatments. Stylus was formed in 2022 by Raven, the incubator of RA Capital Management, and Khosla Ventures. Those firms made a $40 million Series A investment in Stylus, which was followed more recently by a $45 million Series A extension from RA Capital and Khosla as well as six new investors. Cambridge, Massachusetts-based Stylus presented details about its technology at the recent annual meeting of the American Society of Gene and Cell Therapy.
—Remedy Plan Therapeutics announced more than $18 million in financing from company insiders as it prepares to advance to Phase 1/2 testing with RPT1G, an experimental treatment for patients with the blood cancers acute myeloid leukemia or high-risk myelodysplastic syndromes. RPT1G is a small molecule designed to block NAMPT, an enzyme that regulates cellular metabolism. Beyond cancer, Remedy Plan is researching applications of NAMPT inhibition in autoimmune disease and obesity. To date, the Gaithersburg, Maryland-based biotech said it has raised $55 million total.
—HAYA Therapeutics raised $65 million as it prepares to advance to the clinic with HTX-001, an oligonucleotide designed to hit a specific target in the so-called dark genome as a way to potentially reverse the cardiac fibrosis that drives non-obstructive hypertrophic cardiomyopathy.
—The first approved drugs for the elusive cancer target KRAS address a specific mutation called KRAS G12C. PAQ Therapeutics raised $39 million in Series B financing as it proceeds with Phase 1 testing of PT0253, a targeted protein degrader designed to selectively address a mutation called KRAS G12D. Affini-T Therapeutics and Revolution Medicines are among the companies also developing drugs for this target. PAQ’s new financing marks a pivot for the Burlington, Massachusetts-based startup, which launched in 2021 focused on neurodegenerative diseases. MRL Ventures Fund and Bayland Capital co-led PAQ’s latest financing.
Public domain image by Flickr user SciTechTrend
