Cardiff University spin-out Draig Therapeutics has emerged from stealth mode with $140 million (£107 million) in Series A financing to advance its pipeline of novel neuropsychiatric therapies. The oversubscribed funding round, led by Access Biotechnology with participation from Canaan Partners, SR One, Sanofi Ventures, and Schroders Capital, represents the most significant commercial investment into Welsh research to date.
Targeting Core Brain Networks
The clinical-stage company was founded through a partnership between Cardiff University's Medicines Discovery Institute and SV Health Investors, leveraging the unique scientific expertise of Professors John Atack and Simon Ward in modulating glutamate and GABA pathways in the brain. These core neurotransmission systems play critical roles in neuropsychiatric diseases, representing previously difficult-to-drug targets.
"Despite numerous treatments available for neuropsychiatric disorders, a significant unmet need remains with many patients continuing to experience inadequate symptom relief and high rates of relapse," said Liam Ratcliffe, Head of Access Biotechnology. "Draig's differentiated approach, which targets core mechanisms underlying these complex conditions, has the potential to deliver a real breakthrough for patients."
Lead Candidate Advances to Phase 2
The funding will enable Draig to advance its lead candidate DT-101, a next-generation AMPA receptor positive allosteric modulator (PAM), into Phase 2 trials for Major Depressive Disorder in 2025. DT-101 was specifically designed to allow effective modulation of the AMPA receptor without compromising safety, addressing toxicity issues that have plagued previous generation AMPA receptor modulators.
The drug demonstrated promising results in a well-tolerated Phase 1a program involving over 60 subjects, which clearly showed target engagement using the novel technique of magnetoencephalography. These results will be presented at an upcoming scientific meeting.
Other drugs in the AMPA receptor class have encountered significant safety challenges, including convulsions and neurotoxicity, which derailed development programs such as Eli Lilly's mibampator and Servier/RespireRx's tulrampator. Draig's approach aims to overcome these limitations with a much wider therapeutic window compared to earlier generation compounds.
Expanding Pipeline
Beyond DT-101, the company plans to advance two highly selective GABAA receptor modulators, DT-201 and DT-301, towards clinical development in 2026. These candidates have best-in-class potential across a range of prevalent and underserved neuropsychiatric disorders, though specific indications have not been disclosed.
The proceeds from the financing will fund four clinical studies: two related to the Phase 2-stage lead candidate DT-101 in Major Depressive Disorder and two in additional programs.
Experienced Leadership Team
Draig has assembled a world-class leadership team combining academic expertise with extensive industry experience. The founding team includes Prof. John Atack as Chief Translational Officer, Prof. Simon Ward as Chief Scientific Officer, and Ruth McKernan CBE as Executive Chair.
The executive team brings deep biotech and pharmaceutical experience, including Inder Kaul MD as Chief Medical Officer (formerly at Bristol Myers Squibb and Karuna Therapeutics), Florian Islinger MD as Chief Commercial Strategy Officer (formerly at Roche), and David Watson as Chief Operating Officer (formerly at Biogen).
"Making the best molecules to rebalance brain networks has been John and Simon's life work. It has been a professional highlight for me to be part of creating this hugely promising company too," said Ruth McKernan, Operating Partner at SV Health Investors and Co-Founder of Draig.
Strategic Investment Backing
The investment syndicate reflects strong confidence in Draig's scientific approach and commercial potential. Charles Dunn, Principal at SV Health Investors, noted: "From the outset, we were drawn to Draig's bold scientific vision and the founding team's deep expertise in unlocking high value but previously difficult-to-drug targets in neuropsychiatric disorders."
The company name "Draig," meaning dragon in Welsh, reflects its origins in Wales and scientific roots stemming from Cardiff University. With this substantial funding and experienced team in place, Draig is positioned to make significant advances in addressing unmet needs in neuropsychiatric medicine.
