Neurosterix' $105m round leads the week's biotech financings

In private financing news this week, Neurosterix raises $105 million for its schizophrenia candidate, while Delix, VectorY, and Eli Radiopharma also add to their cash reserves.

Addex spinoff Neurosterix plans phase 2 for muscarinic PAM

Neurosterix is moving its antipsychotic drug NTX-253 into a Phase II schizophrenia clinical trial with the help of a $105 million Series B round led by RTW Investments.

The spinout of Switzerland's Addex Therapeutics, based in Boston and Geneva, is developing a new generation of muscarinic agonist drugs for schizophrenia, a class currently represented by Bristol Myers Squibb's Cobenfy (xanomeline tartrate/trospium chloride), which was approved by the FDA in 2024 and came from its takeover of Karuna Therapeutics. Alongside the financing, Neurosterix has also recruited three former Karuna executives, including Cobenfy pioneer Andrew Miller.

By targeting muscarinic and not dopamine pathways, Cobenfy has shown it can reduce symptoms of schizophrenia without the movement-related and metabolic side effects of earlier therapies. NTX-253 is an oral positive allosteric modulator (PAM) of the muscarinic M4 receptor, a slightly different mechanism from Cobenfy's M1/M4 agonism, and is due to start a phase 2 trials programme in early 2027.

Following after are NTX-819, a negative allosteric modulator of the mGlu7 receptor that is being developed for mood and anxiety disorders, and NTX-529, another M4-targeting candidate intended for other psychosis and mood disorder indications.

Additional participants in the round included new investors Janus Henderson Investors, GV, Ikarian Capital, Affinity Asset Advisors and Dellora Investments, alongside existing backers Perceptive Advisors and Acorn Bioventures.

J&J leads round for neuroplastogen specialist Delix

Delix Therapeutics – which is developing psychedelic-derived therapies for psychiatric and neurological conditions known as 'neuroplastogens' – pocketed $100 million in Series C and will use the proceeds for a phase 2 trial of lead candidate zalsupindole in major depressive disorder (MDD).

The oral drug is an analogue of the psychedelic active ingredient 5-MeO-DMT, found in a wide variety of plant species as well as the Colorado River toad, that has been tweaked to avoid psychoactive effects like hallucinations and dissociation but retain the benefits of the drug in elevating mood. The hope is that profile would allow it to be used at home, while other psychedelics currently need to be administered in controlled settings.

In a phase 1b trial in adults with recurrent MDD, zalsupindole-treated patients achieved a 50% improvement in symptoms on the MADRS scale after one week of either weekly or twice-weekly dosing, with the benefits extending for at least four weeks.

The financing was led by Johnson & Johnson's venture capital unit JJDC and SV Health Investors' Dementia Discovery Fund, with participation from existing investors as well as new backers including Adage Capital Management, Hamilton Square Partners Management, Vestal Point Capital, and YK Bioventures.

ALS therapy developer VectorY adds $83.5m to its coffers

Netherlands biotech VectorY Therapeutics raised €74.5 million ($83.5 million) for its pipeline of vectorised antibody therapies for neurodegenerative diseases led by VTx-002, currently in the phase 1/2 PIONEER-ALS study in people living with amyotrophic lateral sclerosis (ALS).

VTx-002 targets pathological TDP-43, a protein that aggregates abnormally in up to 97% of ALS patients, according to the Amsterdam-headquartered biotech. The drug is delivered by an adeno-associated virus (AAV) vector and is designed to stimulate sustained antibody expression of an anti-TDP-43 antibody within the central nervous system.

Along with funding further clinical development of VTx-002, the cash injection will also be used to support VectorY's broader pipeline, including VTx-003 for Huntington's disease, which targets pathological forms of the huntingtin (HTT) protein, as well as TDP-43-targeting VTx-004 for frontotemporal dementia and VTx-005 for Alzheimer's disease, which is designed to reduce tau protein levels.

The financing includes new investors Angelini Ventures, Invest-NL and the EIB, alongside returning investors Forbion, EQT Life Sciences, MRL Ventures, Insight Partners, BGV, Eli Lilly, and the ALS Investment Fund.

Eli Radiopharma eyes trials of cancer, neurology candidates

China's Eli Radiopharma has raised CNY 400 million ($60 million) in first-round financing that will help it push its portfolio of diagnostic and therapeutic candidates into clinical testing for oncology and neurology indications.

In a statement, two-year-old Eli, which is based in Hangzhou, said the proceeds will go towards preclinical research, clinical trial applications, and early-stage clinical development of its radiopharmaceuticals, noting that several candidates are approaching applications to start human testing.

The round was led by Huagai Capital, with Bayland Capital as co-lead investor, with new investors Boyu Ventures, Delian Capital, InnoPinnacle Fund, Haibang Venture, Bairui Capital, Shenzhen Angel FOF Management, and Grand Flight Investment also taking part alongside existing backers.