TLDR:
- Engrail Therapeutics closed a $157M series B round to fund its neuropsychiatric pipeline.
- The success of the fundraising was partly due to interest from Big Pharma buyouts of neuropsychiatry-focused biotechs.
Engrail Therapeutics, a biotech company focused on neuroscience and developing treatments for anxiety, depression, and other mental health disorders, recently closed a significant nine-digit series B round totaling $157 million. The success of this fundraising round can be attributed to a surge of interest from investors in funding new treatments within the neuropsychiatric therapeutic area, which has experienced a resurgence in recent times. This interest was fueled by the acquisitions of neuropsychiatry-focused biotechs Karuna Therapeutics and Cerevel Therapeutics by Bristol Myers Squibb and AbbVie, respectively. Engrail’s CEO, Vikram Sudarsan, mentioned that most investors were already lined up before these buyouts were announced, yet they accelerated the fundraising process. The additional capital raised will extend Engrail’s cash runway into 2026, with a focus on conducting a phase 2 trial for their drug ENX-102 in patients with generalized anxiety, expecting topline data in the first half of 2025. The company plans to use the new funds to advance their preclinical molecules for treatments of depression, anhedonia, and post-traumatic stress disorder. The highly oversubscribed series B round was co-led by F-Prime Capital, Forbion, and Norwest Venture Partners, with other investors also joining the board. Engrail plans to expand its team, particularly in clinical development, but remains non-committal on future financing plans, be it another private round or an IPO.
