UC Davis Health Ventures has announced its inaugural investment from the newly launched Investing in the Future of Medicine (IFM) Fund, backing Delix Therapeutics, a clinical-stage neuroscience company developing non-hallucinogenic treatments for major depressive disorder and other neuropsychiatric conditions.
The investment marks a significant milestone for both the university's commercialization efforts and the advancement of novel depression therapies. Delix, a UC Davis spinout, is pioneering a new class of neuroplasticity-promoting compounds that could transform treatment paradigms for patients with treatment-resistant depression.
Clinical Progress and Breakthrough Science
Delix's lead candidate, DLX-001 (Zalsupindole), has demonstrated promising clinical results in early-stage trials. The compound has completed Phase 1a studies showing favorable safety and tolerability profiles, along with proof of central nervous system engagement using a novel biomarker relevant to neuroplasticity.
More significantly, the company has completed a Phase 1b study in patients with major depressive disorder, demonstrating that DLX-001 produces rapid, sustained and meaningful reductions in depressive symptoms. This represents a potential breakthrough for patients who cycle through multiple therapies without relief.
The science behind Delix's platform originated in the laboratory of Professor David E. Olson at UC Davis, whose research successfully separated the therapeutic effects of psychedelics from their hallucinogenic properties. This breakthrough led to the development of next-generation, non-hallucinogenic compounds designed to rapidly promote neuroplasticity.
"UC Davis research powered this therapeutic platform and it's energizing to see continued commitment from the university," said Mark Rus, chief executive officer of Delix Therapeutics. "Partners who understand the urgency in MDD and the promise of non-hallucinogenic neuroplastogens are invaluable as we advance Zalsupindole (DLX-001) and the rest of our broad neuroplastogen pipeline."
Addressing Critical Medical Need
Major depressive disorder affects roughly 15 to 20 percent of people during their lifetime and is associated with chronic disability and high costs. Current treatment options often require weeks to show efficacy, and many patients do not respond to existing therapies.
Delix's compounds could represent a long-awaited new class of treatment with rapid, robust effects in days rather than weeks. The company's easily manufactured small molecules are capable of rapidly inducing structural and functional neural changes in targeted areas of the brain, potentially offering transformative benefits for patients with difficult-to-treat neuropsychiatric and neurological disorders.
Strategic Investment Framework
The IFM Fund represents a $25 million funding program managed by UC Davis Health Ventures to accelerate translation of high-impact innovations and invest in aligned external companies addressing major health needs. The fund operates alongside the Health Venture Studio at Aggie Square to de-risk UC Davis discoveries for clinical and market adoption.
"This inaugural IFM investment shows how we can help to diversify UC Davis Health's revenues while backing companies with clinical impact," said Jennifer Doll, chief financial officer for UC Davis Health. "By investing in world-class companies like Delix, we can strengthen our long-term financial position and help bring transformative therapies to patients."
The investment is being made in collaboration with UC Investments, which manages over $200 billion across endowment, pension and working capital portfolios, enabling strategic co-investment with campus partners.
Innovation Ecosystem Development
The Delix investment exemplifies UC Davis's comprehensive approach to translating academic research into clinical solutions. Professor Olson's journey with Delix highlights how the university's ecosystem advances innovations, having received early support through the Science Translation and Innovative Research (STAIR) Grant and the Smart Toolkit for Accelerated Research Translation (START) program.
"The IFM Fund strengthens our campus and regional ecosystem by closing early- and later-stage funding gaps and anchoring high-potential companies here," said George Baxter, chief innovation and economic development officer for UC Davis. "It's a durable platform to move breakthroughs from our labs into clinics and markets."
Ron Amodeo, chief strategy officer for UC Davis Health, emphasized the strategic alignment: "Delix is exactly the type of company we set out to champion: science born at UC Davis and scaled to improve patient lives."
The University of California holds intellectual property rights related to this innovation, with UC Davis having licensed those rights to Delix Therapeutics. Under UC policy, the university and inventors may be eligible to receive a share of licensing income, with any related potential conflicts of interest reviewed and managed by the university.
