Seaport raises $225M for brain drug development

Seaport Therapeutics, a burgeoning biotechnology company focused on brain-related drug development, has recently secured an additional $225 million from a group of prominent healthcare investors. Established in April by PureTech Health, the Boston-based incubator responsible for the foundation of Karuna Therapeutics 15 years ago, Seaport aims to develop psychiatric medications that are longer-lasting and have fewer side effects.

Karuna Therapeutics, which pioneered a new class of antipsychotic drugs, was recently acquired for $14 billion. In many ways, Seaport continues Karuna's legacy. Its most advanced project is an oral drug formulated to enhance the delivery of a steroid known as allopregnanolone to the brain. This steroid plays a crucial role in regulating neuronal response to stimulation and is the active component in Zulresso, a postpartum depression treatment by Sage Therapeutics. However, Seaport is investigating its efficacy in treating major depressive disorder, conducting a mid-stage study that could potentially form the basis for regulatory approval.

In addition, Seaport is developing a compound similar to melatonin for generalized anxiety disorder and another drug targeting mood and neuropsychiatric disorders.

When Seaport was launched in April, it had already amassed $100 million from a Series A funding round with notable contributions from biotech investors like Arch Venture Partners, Sofinnova Investments, and Third Rock Ventures. These firms, alongside PureTech, also participated in the latest funding round, which generated more interest than anticipated. The Series B round was led by General Atlantic, a growth equity firm, and included investments from T. Rowe Price Associates, Foresite Capital, Invus, Goldman Sachs Alternatives, CPP Investments, among others.

Seaport intends to utilize the funds to propel its clinical-stage research programs through significant milestones and to advance its Glyph drug-making technology. Daphne Zohar, Seaport's CEO and co-founder, highlighted the financing's importance in facilitating clinical work that brings the company closer to delivering new medicines. Zohar previously founded PureTech and served as its CEO before transitioning to Seaport, and she also co-founded Karuna. Steven Paul, who was Karuna's CEO, co-founded Seaport and currently chairs its board of directors.

Brett Zbar, the global head of life sciences at General Atlantic, expressed his firm's admiration for the Seaport team’s exceptional track record in developing central nervous system drugs, as well as their technology and research programs. Zbar noted that the team's expertise in neuropsychiatric clinical development and trial design provides distinct advantages that are expected to contribute significantly to Seaport's success.

Seaport Therapeutics' strategic approach and the backing from esteemed investors underscore its potential to innovate in the field of psychiatric medicine, carrying forward the pioneering spirit of its predecessor, Karuna Therapeutics.