Alto Neuroscience announces $60M in funding for four phase 2 studies

Alto Neuroscience Inc. announced that Alpha Wave Ventures has made a $25 million equity investment to its Series B funding, bringing the total to roughly $60 million as Alto seeks to expand its roster of mental-health related therapeutics.

According to a company press release, Alto also entered a $35 million credit facility with K2 HealthVentures to expand its clinical-stage pipeline.

“This additional equity investment and flexible credit facility enable us to complete four definitive studies that will, if successful, enable future registrational studies in indications of high unmet medical need,” Nick Smith, chief financial officer at Alto Neuroscience, said in the release. “We are pleased to be working with Alpha Wave and K2, among our other supportive investors, to advance Alto’s mission through crucial validation points in the coming years.”

The funding — which raises the total equity capital to approximately $100 million — will provide a foundation as Alto embarks on four phase 2 studies of four novel drug candidates, the company stated. The funds also will aid development of the company’s psychiatry platform, which measures brain biomarkers by analyzing a host of neurologic, behavioral and genetic factors to match patients to the correct Alto-manufactured drug.

As part of the contribution to Alto’s financing, Chris Dimitropoulos, managing director of biotechnology investments at Alpha Wave Global, has joined Alto’s board of directors.

“This financing is a testament to our confidence in Alto’s science, platform, team and ability to execute,” Dimitropoulos said in the release. “We are encouraged by their unique approach backed by over a decade of human data exploring brain mechanisms and patient heterogeneity.”