Aardvark Therapeutics Secures $85M in Oversubscribed Series C Funding

Aardvark Therapeutics, Inc., a clinical-stage biopharmaceutical company based in San Diego, has successfully raised $85 million in an oversubscribed Series C financing round. The investment was spearheaded by Decheng Capital and saw participation from a mix of new and existing investors, including Cormorant Asset Management, Surveyor Capital, SymBiosis, Tetragon Financial Group, Walleye Capital, Laurion Capital Management, LG Technology Ventures, Cantor Fitzgerald & Co., Silver Arc Private Capital, The Prader-Willi Syndrome Association – USA, Vickers Venture Partners, and the Foundation for Prader-Willi Research.

With the new funding, Aardvark aims to advance the clinical trials necessary for the regulatory approval of its flagship drug, ARD-101, which is designed to treat hyperphagia in individuals with Prader-Willi Syndrome (PWS). Hyperphagia is characterized by an intense, chronic hunger that significantly impacts the lives of those with PWS. Additionally, the funds will support the exploration of ARD-101's complementary mechanisms to existing GLP-1 therapies in the fight against obesity, as well as the development of other drugs in Aardvark's pipeline.

Dr. Tien Lee, CEO of Aardvark Therapeutics, expressed confidence in ARD-101, highlighting its unique mode of action that activates gut-brain signaling to reduce hunger. This mechanism is both orthogonal and complementary to current obesity treatments, ensuring a promising safety and tolerability profile. The company is hopeful that the support from its investors will facilitate the rapid clinical development of ARD-101, ultimately benefiting patients who suffer from hyperphagia.

Decheng Capital, the lead investor, has shown strong support for Aardvark's innovative approach to treating metabolic disorders and PWS. Victor Tong, Jr., Managing Director at Decheng Capital, has joined Aardvark's board of directors as part of the investment. He emphasized the impressive groundwork laid by Aardvark's management in advancing ARD-101 and expressed eagerness to collaborate closely to overcome the challenges associated with PWS.

The involvement of The Foundation for Prader-Willi Research (FPWR) and the Prader-Willi Syndrome Association | USA (PWSA | USA) has been vital for the development of ARD-101. Dr. Theresa Strong, Director of Research Programs at FPWR, highlighted the promising early results from ongoing clinical trials, which have shown significant reductions in hunger and food-seeking behaviors in participants. The FDA has already recognized the potential of ARD-101 by granting it Orphan Drug Designation and Rare Pediatric Disease Designation, paving the way for its accelerated development.

Stacy Ward, CEO of PWSA | USA, echoed the sentiment, noting the excitement within the PWS community as ARD-101 moves forward through clinical trials. The focus remains on addressing the urgent need for safe and effective treatments for the severe hunger experienced by individuals with PWS.

Prader-Willi Syndrome is a complex neuro-developmental disorder affecting approximately 1 in 15,000-20,000 births. It results from the loss of function of several genes on chromosome 15 and impacts multiple organ systems, leading to severe hunger, developmental issues, and musculoskeletal abnormalities. Currently, there are no approved treatments specifically for hyperphagia in PWS, making the development of ARD-101 a crucial endeavor.

Aardvark Therapeutics specializes in developing novel, small-molecule drugs that activate innate homeostatic pathways to treat metabolic diseases and inflammation. ARD-101, their leading compound, is a potent bitter taste receptor (TAS2R) pan-agonist that stimulates gut-brain signaling to help regulate hunger. The ongoing clinical trials and FDA designations underscore the drug's potential in addressing the unmet needs of patients with PWS.