Autobahn secures $100M for Phase II mood disorder treatment

Autobahn Therapeutics has recently secured $100 million in a Series C funding round, reflecting a surge in interest for central nervous system (CNS) programs within the biotech industry. This funding marks a significant milestone for the neuropsychiatry-focused startup as it advances its lead candidate, ABX-002, into Phase II clinical trials for major depressive disorder (MDD) and bipolar disorder depression. Notable investors participating in the round include major pharmaceutical companies Bristol Myers Squibb, Biogen, and Pfizer Ventures, alongside lead investor Newpath Partners.

The financing round also saw participation from new investors such as Canaan Partners, Monograph Capital, and Insight Partners, in addition to founding firms ARCH Venture Partners and Blue Owl Healthcare Opportunities. This diverse investor base underscores the growing confidence in Autobahn's approach to treating mood disorders.

Autobahn Therapeutics initially emerged from stealth mode in 2020 with a $76 million launch. Originally, the company aimed to use ABX-002 to treat multiple sclerosis. However, by 2022, the focus had shifted towards major depressive disorder (MDD), leading to an additional $32.7 million in funding and the initiation of a Phase I trial in healthy volunteers. The trial concluded at the end of 2023, demonstrating no serious adverse events or safety-related discontinuations. Thomas Cahill, founder and managing partner of Newpath Partners, expressed optimism about the early clinical data, describing them as "encouraging."

Besides ABX-002, Autobahn Therapeutics is also progressing with ABX-101, an oral S1P receptor modulator that can penetrate the brain. This candidate is moving into Phase I trials for neuroimmunologic and neuroinflammatory disorders, further expanding the company's CNS portfolio.

The heightened interest in CNS therapies is part of a broader industry trend fueled by significant acquisitions and collaborations. Notably, at the end of 2023, AbbVie acquired Cerevel Therapeutics for $8.7 billion, and Bristol Myers Squibb purchased Karuna Therapeutics for $14 billion. These acquisitions, driven by the potential of promising schizophrenia treatments, have set the stage for a wave of investment and deal-making in the neuropsychiatry field.

Further emphasizing this trend, AbbVie has entered into a $2-billion collaboration with Gilgamesh Pharmaceuticals to develop psychedelic treatments for psychiatric disorders. This move signifies a growing commitment to exploring innovative approaches within neuropsychiatry.

On the public financing front, NASDAQ has seen the listing of several companies focused on mood disorder treatments, including Contineum Therapeutics, Alto Neuroscience, and Rapport Therapeutics. Privately, the trend is equally robust, with at least seven neuropsychiatry-focused startups securing venture funding in the first half of the year.

Autobahn Therapeutics' successful Series C funding round not only reflects the company's potential in addressing mood disorders but also highlights the broader industry's increasing interest in neuropsychiatry. As the company advances its clinical programs, it stands at the forefront of a burgeoning field, poised to make significant contributions to the treatment of CNS disorders.