Reunion Secures $103M to Advance Psychedelics for Patients

Reunion Neuroscience, after a tumultuous year that included delisting from NASDAQ and transitioning to a private entity, has secured substantial funding to advance its experimental psychedelic treatment for postpartum depression (PPD) into mid-stage clinical trials. The company's financial revitalization comes from a significant $103-million Series A funding round, co-led by MPM BioImpact and Novo Holdings. Other investors in this round include Arkin Bio Capital, Mitsui & Co. Global Investment, Plaisance Capital, FemHealth Ventures, and Palo Santo.

Reunion Neuroscience stands as the second biotech firm this year to amass $100 million or more for a psychedelic drug endeavor. Earlier, Lykos Therapeutics raised a similar amount as it awaited an FDA decision on its MDMA capsules for treating post-traumatic stress disorder (PTSD).

The recent infusion of funds will primarily support a Phase II clinical trial for Reunion's leading candidate, RE104. This trial is set to begin in the current quarter, with results anticipated by the second quarter of 2025. RE104 is a prodrug of 4-OH-DiPT, a compound similar to psilocybin, targeting the serotonin 2A receptor (5HT2AR), which plays a role in the antidepressant effects of psychedelic substances. Reunion has made chemical modifications to RE104 to enhance the solubility and stability of 4-hydroxy-DiPT. These enhancements aim to create a more effective and reliable drug product.

The company's approach offers a promising alternative to traditional depression treatments like serotonin reuptake inhibitors (SSRIs), which need continuous dosing and often come with limited efficacy and undesirable side effects. In contrast, psychedelic drugs such as psilocybin have demonstrated the potential to produce lasting antidepressant effects after a single dose.

However, one of the significant challenges with psychedelics like psilocybin and MDMA is the duration of their effects, which can last much of a day and necessitate supervision by trained healthcare providers. To address this, Reunion has designed RE104 to induce an intense psychedelic experience comparable to psilocybin but with a considerably shorter duration, lasting only three to four hours. This reduced timeframe is expected to minimize the in-clinic time needed for patients to about half a day.

The newly acquired funds will also facilitate a second Phase II trial of RE104. This upcoming clinical program will explore the use of the prodrug in treating adjustment disorder in cancer (ADC). ADC is a condition where individuals struggle to adapt to life changes following a cancer diagnosis, often accompanied by depression and anxiety.

Reunion Neuroscience's recent developments underscore a significant step forward in the exploration of psychedelic compounds for mental health treatment. With substantial financial backing and a clear clinical path, the company is well-positioned to advance its innovative therapies for PPD and ADC, potentially offering new hope for patients suffering from these debilitating conditions.