Autobahn secures $100M for neuropsych drug development

San Diego's biotechnology firm, Autobahn Therapeutics, has successfully raised $100 million to further its investigational treatment for mood disorders into mid-stage clinical trials. Established in 2020, the company is focused on developing this medication, named ABX-002, for major depressive disorder and bipolar disorder depression. ABX-002 functions similarly to Madrigal Pharmaceuticals' Rezdiffra by targeting thyroid hormone receptors. Although synthetic thyroid hormone has been used off-label by psychiatrists to treat depression for years, it carries the risk of heart-related side effects and lacks official approval for this use.

According to Kevin Finney, CEO of Autobahn Therapeutics, ABX-002 is being developed as a "Trojan horse" that can penetrate the blood-brain barrier. The company aims to test the drug as an adjunctive therapy, meaning it will be administered in conjunction with other antidepressants. This combined approach could enhance the effectiveness of existing drugs at lower doses, potentially minimizing the adverse effects associated with higher doses of antidepressants.

Finney highlighted that this new depression medication might be particularly beneficial for individuals suffering from atypical depression, which is characterized by symptoms such as excessive sleeping, fatigue, and weight gain. As the pharmaceutical industry hastens to innovate new classes of antidepressants, Finney envisions Autobahn Therapeutics' efforts as part of a broader transformation in treating mood disorders. He expressed hope that multiple therapies would be approved to cater to the diverse range of patient subtypes, necessitating a variety of treatment options.

Autobahn Therapeutics was co-founded by Tom Scanlan, a researcher at Oregon Health & Science University, and Keith Lenden, a venture partner at Arch Venture Partners. Despite sharing its name with Germany's famous highway network, the company’s name is actually a nod to a fictional band in the film "The Big Lebowski," a favorite of one of the founders.

Initially, Autobahn Therapeutics concentrated on disorders of the central nervous system, including multiple sclerosis and adrenomyeloneuropathy. Over time, the company has shifted its focus towards neuropsychiatric drugs, although it continues to develop an S1P modulator for neuroinflammatory conditions, which is expected to enter clinical trials next year. Several S1P modulators are already approved for treating multiple sclerosis.

Before the recent Series C funding round, Autobahn Therapeutics had raised $125 million. This latest round was led by Newpath Partners, with new investors such as Canaan Partners, Monograph Capital, and Insight Partners joining in. Previous investors, including Arch Venture Partners, Biogen, Pfizer Ventures, and Bristol Myers Squibb, also participated in the funding.

Finney, a former executive at Abide Therapeutics, indicated that the company might explore additional private funding, a pharmaceutical partnership, or an initial public offering to advance its drugs into Phase 3 clinical trials.

The pharmaceutical sector has recently seen increased investment in psychiatric drugs, highlighted by significant acquisitions such as those of Karuna Therapeutics and Cerevel Therapeutics, both specializing in schizophrenia treatments. This surge in investment has fueled optimism that new, effective treatments for conditions like schizophrenia, depression, and bipolar depression are on the horizon.

Thomas Cahill, the founder of Newpath Partners, underscored the urgency of developing new and improved medications to combat the global depression crisis, which has reached unprecedented levels in recent years. He expressed enthusiasm about collaborating with the Autobahn Therapeutics team to bring much-needed therapies for people dealing with depression and other central nervous system disorders.