#Iceland #Reykjavik #Arctic Therapeutics #Sanos Group #EIC Fund

Arctic Therapeutics Secures €26.5M to Propel Dementia Treatments

In an important stride for Icelandic biomedical innovation, Arctic Therapeutics (ATx) confirmed the closure of an oversubscribed Series A financing round, garnering a remarkable €26.5 million. This feat not only underscores the investors' confidence but also highlights the emergent need for novel treatments targeting dementia and other serious health conditions.

The financing round saw participation from a notable array of international investors. Among them were the EIC Fund, Kaldbakur—Iceland's prominent private investment firm—and the Sanos Group, supported by Investcorp. Further strengthening the consortium were the Cerebrum DAO, and contributions from family foundations, including one established by billionaire Jeffrey Lurie. Early backers of the Icelandic unicorn Kerecis, along with other institutional and family investment groups from Iceland, also played a role.

Ivar Hakonarson, the co-founder and CEO of ATx, emphasized that this funding milestone is pivotal in their mission to tackle pressing unmet medical needs, particularly in advancing therapies for both rare familial dementias and inflammatory skin diseases. The financial backing is intended for two flagship projects: AT-001 and AT-004.

The company is gearing up to advance AT-001 into clinical trials—a promising therapy focused on Hereditary Cystatin C Amyloid Angiopathy (HCCAA). This rare dementia variant has garnered attention due to the European Medicines Agency's (EMA) approval for a pivotal phase IIb/III trial, which will investigate the efficacy of AT-001 in inhibiting harmful amyloid protein aggregation in the brain. These amyloid proteins are implicated in various forms of dementia, including Alzheimer’s disease, making this research particularly crucial as it could pave the way for groundbreaking advancements in treatment. The funds raised will duly enhance the investigation into the potential applications of AT-001.

Hakonarson noted, "Understanding how amyloid proteins behave and the significance of preventing their aggregation could potentially transform treatment outcomes for dementia patients. Our approach aims not only to slow down the disease process but ideally to prevent it altogether."

In tandem with the trials for AT-001, ATx is set to launch a phase IIa clinical study for AT-004 towards battling serious skin conditions such as acne vulgaris, atopic dermatitis, rosacea, and psoriasis. This progression reflects ATx's commitment to expanding its therapeutic portfolio, addressing both neurological and dermatological health challenges.

The company has also made strategic board appointments to enhance its expertise; Jeppe Ragnar Andersen, CEO of the Sanos Group, will be joining ATx's board. Hirers like Andersen bring valuable experience stemming from his company’s strategic focus in dermatology and recent expertise in clinical trials associated with Alzheimer’s through the acquisition of NeuroScios.

The recognition of ATx in the EIC Scaling Club, an exclusive network for Europe's most promising scaleups, further validates its ambition of growth and success in the competitive biotech arena. With support from these prestigious networks, the company is poised for significant strides in product and market development.

Svetoslava Georgieva, Chair of the EIC Fund Board, highlighted the urgency for innovative solutions to combat the escalating dementia crisis, which impacts over ten million people in Europe alone. Georgieva stated, “This investment helps tackle a pressing global healthcare challenge. By backing Arctic Therapeutics, we are supporting pioneering preventive treatments that could positively affect numerous lives and alleviate pressure on healthcare systems worldwide.”

Arctic Therapeutics began its journey in 2015 as a spin-off from the Center for Applied Genomics (CAG) in Philadelphia. The company leverages applied genomics for the discovery of effective drug treatments that tackle some of the globe's pressing disease challenges. Northern European collaborations, along with operations in Iceland and the United States, place ATx at the epicenter of innovative biotech development.

To learn more about Arctic Therapeutics and its revolutionary approach to drug discovery, visit www.arctictherapeutics.com.