Novo-Backed Reunion Secures $103M Series A for Psychedelic Trial

Reunion Neuroscience, a developer of psychedelic drugs, has successfully secured $103 million in Series A funding to advance their primary candidate for postpartum depression into further clinical trials. This financing round was co-led by Novo Holdings and MPM BioImpact, with additional participation from Arkin Bio Capital, Mitsui & Co. Global Investment, FemHealth Ventures, Plaisance Capital, and Palo Santo. Earlier in June 2023, MPM BioImpact had acquired Reunion in a $13.1 million deal, taking the company private.

The recently raised funds will be utilized to support a Phase II clinical trial for Reunion's leading candidate, RE104, targeting patients with postpartum depression. The company plans to begin patient enrollment within this quarter, with results expected by the second quarter of 2025.

RE104 is a synthesized and shorter-duration derivative of psilocybin, specifically a prodrug of 4-OH-DiPT. Acting on the serotonin 2A receptor, a known target for the antidepressant effects of psychedelic substances, RE104 requires only half a day for administration under clinical supervision. This time frame is significantly shorter than the administration periods required for other psychedelic treatments like MDMA or psilocybin.

Last year, a Phase I analysis of RE104 indicated that the drug was well-tolerated, displaying robust pharmacodynamic effects that lasted about three to four hours. This is comparatively shorter than the six to eight-hour duration often reported for psilocybin treatments.

Greg Mayes, CEO of Reunion Neuroscience, expressed gratitude for the financial support from MPM BioImpact, Novo Holdings, and other participating institutional healthcare investors. He noted that their collective support reflects Reunion’s potential to significantly transform mental health treatment for a large population of patients underserved by the current standard of care.

Beyond postpartum depression, Reunion is also exploring the application of RE104 in other neuropsychiatric conditions such as adjustment disorder in cancer (ADC). ADC is characterized by a maladaptive response to a cancer diagnosis, and currently, there is an unmet need for effective treatments in this area.

Natalie Sacks, a venture partner at Novo Holdings U.S., expressed optimism about the potential for RE104 to become a leading therapy. She emphasized its potential to improve outcomes for patients with limited treatment options for postpartum depression and other mental health disorders.

The psychedelic drug market has been attracting significant investment in recent years, especially following the approval of Janssen’s antidepressant nasal spray Spravato in 2019, which uses esketamine, a compound related to ketamine. According to a report by Mordor Intelligence, there was a tenfold increase in investment in psychedelics from 2019 to 2020.

The psychedelic sector has remained active into 2024. The MAPS Public Benefit Corporation, now rebranded as Lykos Therapeutics, raised $100 million in a Series A round and has already submitted an NDA for its MDMA-assisted therapy aimed at treating post-traumatic stress disorder.

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