Engrail Secures $157M in Series B Funding for Neurological Treatments Advancement

Engrail Therapeutics, headquartered in San Diego, has successfully raised $157 million through an oversubscribed Series B funding round. This new funding will enable the company to further develop its portfolio of therapeutic assets aimed at treating anxiety, depression, post-traumatic stress disorder, and rare neurodegenerative diseases.

The funding was primarily led by new investors such as Forbion, F-Prime Capital, and Norwest Venture Partners. Additionally, RiverVest Venture Partners, Red Tree Venture Capital, Ysios Capital, Longwood Fund, Eight Roads Ventures, and Pivotal Life Science also participated. These funds will be critical in propelling Engrail's therapeutic pipeline through various stages of clinical development.

Engrail’s CEO, Vikram Sudarsan, expressed gratitude for the strong financial support provided by experienced life science investors. He emphasized that this significant investment places the company in an advantageous position to achieve multiple milestones that create value. Sudarsan highlighted their ongoing Phase II study of ENX-102 for generalized anxiety disorder as a project they are eager to complete, along with advancing their other pipeline treatments into clinical trials. He acknowledged the foundational support received from Pivotal Life Sciences during the company’s early stages and expressed enthusiasm for continuing their journey with new distinguished partners in neuroscience and life sciences.

The company was launched in 2020, initially with a $32 million Series A funding round. This round was solely funded by Nan Fung Life Sciences, which aimed to advance Engrail’s first major pipeline asset, ENX-101. This selective GABA A modulator has since been removed from their website. By 2021, their Series A funding grew to $64 million. Since 2019, Engrail Therapeutics has amassed over $220 million in total funding.

Stacie Weninger, a board member and president of the F-Prime Biomedical Research Initiative, expressed optimism about Engrail’s future. She praised the potential in their pipeline and management team, noting their excitement to support the company’s development of transformative therapies for patients in need.

Engrail is not alone in securing significant funding within the biotech sector. For instance, ProfoundBio, a Seattle-based firm specializing in antibody-drug conjugates, raised $112 million in its Series B round in February 2024 to advance four drug candidates. Similarly, Beijing Avistone Biotechnology, focusing on precision oncology treatments, completed a 1 billion yuan ($140 million) Series B round in January 2024.

This recent wave of funding in the biotech world marks a promising phase for innovative therapies aimed at addressing complex medical conditions.