The U.K.-based biotech is set to enter mid-stage studies for its depression drug this year, while two other GABAA modulators are poised for clinical trials in 2026.
Draig Therapeutics launched on Wednesday with $140 million in Series A capital to hatch novel treatments for neuropsychiatric conditions.
Draig, named for the Welsh word for dragon, will use the money to push its lead candidate DT-101 into Phase II development for major depressive disorder. The molecule is a positive allosteric modulator of the AMPA receptor in the central nervous system and has been designed to have a “much larger therapeutic window” versus previous-generation drugs in this class, according to the company’s website. Draig expects to start mid-stage trials this year.
Aside from depression, the U.K. startup has two GABAA modulators in preclinical development. Draig also plans to use Wednesday’s raise to bring these assets into the clinic by 2026. The company has yet to reveal what specific neuropsychiatric indications it will test the molecules for.
Wednesday’s funding round was led by Access Biotechnology, while Sanofi Ventures, Canaan Partners, Schroders Capital and SR One participated. Draig is the product of a collaboration by the Medicines Discovery Institute at Cardiff University and SV Health Investors, the latter of which also contributed to the startup’s seed funding.
At the core of Draig’s business is research done by John Atack and Simon Ward, both professors at Cardiff University. Atack is Draig’s chief translational officer while Ward will serve as its chief scientific officer. They will work alongside Ruth McKernan, the biotech’s executive chair.
Draig’s debut on Wednesday comes as neuroscience appears to be undergoing a resurgence across biopharma, with several notable wins in recent weeks.
On Tuesday, for instance, Ventyx Biosciences unveiled mid-stage data for its oral drug VTX3232 for Parkinson’s disease that was encouraging enough for analysts at Jefferies to say that the biotech could explore the asset in Alzheimer’s disease and other neurodegenerative conditions. A day earlier, Roche and Prothena doubled down on their late-stage aspirations for their own Parkinson’s drug prasinezumab, despite disappointing Phase II data last year.
Last week, Avidity Biosciences’ antibody-oligonucleotide conjugate was reported to have improved mobility and muscle strength In a Phase I/II trial for facioscapulohumeral muscular dystrophy.
Money has also been flowing into the space. Last month, Dutch biotech Azafaros raised nearly $150 million in a Series B round to bankroll late-stage studies in Niemann-Pick disease Type C and GM1/GM2 gangliosidoses. A few days later, epilepsy specialist GRIN Therapeutics closed a series of deals that could give it more than $700 million in financing.
