Welsh university spinout in huge £100m plus investment for its pioneering neuropsychiatric disorder therapies
Draig Therapeutics said the funding will support clinicial trials as it aims to move closer to commercialisation
John Atack and Simon Ward of Draig Therapeutics.
A Cardiff University life sciences spinout firm pioneering new therapies for neuropsychiatric disorders has been boosted with a huge £100m-plus investment round.
In the biggest ever equity investment round into a Welsh university spinout and one of the largest for a start-up firm in Wales, Draig Therapeutics has secured backing from leading international venture capital investors globally to support its development of novel therapies for major neuropsychiatric disorders such as major depressive disorder.
The company is based on the research and expertise of Professor John Atack and Professor Simon Ward from Cardiff University's Medicines Discovery Institute,
The £107m investment round has been led Access Biotechnology, alongside SV Health Investors and ICG, and including Canaan Partners, SR One, Sanofi Ventures and Schroders Capital.
The company was set in a partnership between the Medicine Discovery Institute and SV Health Investors and its chair in serial entrepreneur Ruth McKernan.
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The new funds will enable Draig Therapeutics to advance its lead candidate drug, DT-101, into phase two trials this year for major depressive disorder. The funding will also enable it to advance two other drugs towards clinical development in 2026 with potential across a range of neuropsychiatric disorders.
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The company was originally set up in 2021, but gained Cardiff University spinout status last year following approval by the university's executive board. Cardiff University said it could not disclose what equity it and the academic founders of the business have post the investment round. Draig currently employs 17 but with the potential for further job creation.
Professor Ward of Cardiff University's Medicines Discovery Institute and Draig Therapeutics, said: 'We have unique scientific expertise in safely and effectively modulating the core Glutamate and GABA pathways in the brain, which play a critical role in neuropsychiatric disorders.
'Our knowledge of balancing the chemical neurotransmitters in the brain in neuropsychiatric conditions underpins Draig's pipeline of novel treatments. With the launch of Draig, we can test and develop these new treatments, to bring them into clinical practice and make genuine impacts on the lives of patients around the world.'
Liam Ratcliffe, head of Access Biotechnology, said: '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. Draig's differentiated approach, which targets core mechanisms underlying these complex conditions, has the potential to deliver a real breakthrough for patients.'
Ms McKernan, co-founder and executive chair of Draig, said:'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.'
The new funds will enable Draig Therapeutics to advance its lead candidate drug, DT-101, into phase two trials this year for major depressive disorder. The funding will also enable it to advance two other drugs towards clinical development in 2026 with potential across a range of neuropsychiatric disorders.
Rhodri Turner, research commercialisation manager in Cardiff University's Research and Innovation Services, said: 'This investment in Draig Therapeutics is the largest into a Cardiff University spinout company and represents an outstanding success for the University's Medicines Discovery Institute and will significantly accelerate the delivery of much-needed therapeutics to patients.'
The insittute was launched at Cardiff University in 2017, with supportive funding from the European Regional Development Fund through the Welsh Government's Sêr Cymru scheme, to translate the latest biomedical research into new therapies.
Professor Roger Whitaker, pro vice-chancellor for research, innovation and enterprise at Cardiff University, said: 'Draig Therapeutics is an excellent example of how our research ecosystem is driving innovation-led growth and real-world commercialisation. In collaboration with government, the private sector and other stakeholders, we look forward to further building on this success to strengthen the sector's wider role in driving inward investment to Wales.
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'Translating our fundamental research into innovative solutions for global challenges is at the heart of what we do. Combined with support for innovation, it is important to remember just how vital Sêr Cymru and other targeted research funding has been in making a step change for Wales. Together we can do much more.'
Professor Wendy Larner, vice-chancellor and president at Cardiff University, said: 'This achievement exemplifies the huge impact from Cardiff's outstanding research. Our strategy for 2035 reaffirms our global-civic ambitions and the partnership approach that is vital for Wales and the UK. Through our new strategy, Cardiff will continue to strengthen its position for future innovation across the portfolio, for continued economic, social and health benefits.'
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