A preclinical neuroscience company whose co-founder works at the University of California Davis has closed a $70 million financing round to advance its leading drug candidates, which harness properties of psychedelic compounds, through clinical trials.
Delix Therapeutics is using analogs of psychedelic compounds for non-hallucinogenic therapies that can potentially reverse brain atrophy and rewire neural circuits to heal people suffering from psychiatric and neurological diseases.
“We appreciate the overwhelming support from new and early investors alike, and continue to attract top neuroscience, chemistry and biotech talent as we pursue a unique pathway toward treating — and potentially healing — neuropsychiatric conditions in a new way,” said Mark Rus, Delix Therapeutics' CEO, in a news release. “We’ve made tremendous progress towards developing efficacious and easily manufactured compounds that have the potential to deliver safe, fast-acting, Food and Drug Administration-approved treatments to help patients in need.”
The round was led by Artis Ventures of San Francisco, RA Capital Management of Boston and founding investor OMX Ventures of Chicago.
Prior to this new funding, Delix had raised $8 million in a funding round in September 2020, according to financing tracker site Crunchbase.
Delix co-founder and Chief Innovation Officer David Olson is a UC Davis professor of chemistry in the Department of Biochemistry and Molecular Medicine.
In June, Olson received a 2021 Chancellor’s Innovation Award from UC Davis Chancellor Gary May.
“This funding is an important step in transforming our years of scientific research and discoveries into innovative treatments for patients in need,” said Olson, in a news release.
“Our preclinical data to-date suggest that our compounds are unlike anything currently in psychiatrists’ arsenals and have the potential to treat a wide range of conditions," he said. "Because the Delix platform directly reverses cortical atrophy — the root cause of many brain disorders — we are optimistic that our treasure trove of novel compounds will yield many safe and scalable treatments."
Delix is based in Boston, though the company is “exploring opportunities, including assessing multiple options across the U.S.,” said spokeswoman Abby Berger, via email. “The company is actively recruiting across a range of roles, with geographic flexibility for top talent, to join Delix’s world-class, fast-growing team.”
In April, Olson and collaborator Lin Tian, also a professor and researcher at UC Davis, published a study in the scientific journal Cell that described how a compound inspired by the chemical structures of common psychedelic substances can demonstrate sustained antidepressant effects but without hallucinogenic properties.
In addition to beginning clinical trials and hiring researchers, Delix will also use proceeds to expand its drug discovery platform, the company said.
Delix’s compounds, known as psychoplastogens, are orally ingestible and simple to manufacture, the company said.
“Delix is at the forefront of neuroscience with a growing platform of novel compounds, a great team and a novel approach. Delix has the potential to advance our understanding of neuroplasticity, a core component of psychedelics, and its ability to heal,” said Vasudev Bailey, senior partner of Artis Ventures.
