Altay Therapeutics, a San Carlos, California-based biotechnology company developing small-molecule therapies targeting disease-related transcription factors, has closed a $37 million Series A financing round.
The round was co-led by Sound Bioventures and HealthCap, with participation from new investors Fountain Healthcare Partners, Biogen New Ventures, Pappas Capital, and Global BioAccess Fund.
Founded in 2019 by Ali Ozes and Osman N. Ozes, Altay Therapeutics develops drug candidates designed to inhibit transcription factors involved in serious diseases. The company participated in Y Combinator’s Winter 2020 programme and is currently led by Chief Executive Officer James Breitmeyer, while Ali Ozes serves as Founder and Chief Scientific Officer.
The company plans to use the new capital to advance its lead drug candidate, DX5057, through Phase 1 development and Phase 2 proof-of-concept clinical trials for facioscapulohumeral muscular dystrophy (FSHD), an inherited neuromuscular disease that causes progressive muscle weakness and loss of function.
DX5057 is an investigational, orally administered small-molecule inhibitor targeting DUX4, a transcription factor whose abnormal expression in skeletal muscle contributes to FSHD. The candidate is designed to suppress DUX4 activity and reduce the expression of genes and proteins associated with the disease.
Altay expects to initiate a Phase 1 safety study in the first quarter of 2027. DX5057 has received orphan drug designation from the US Food and Drug Administration, although it has not received marketing approval.
The company also operates a drug-discovery platform that identifies potential binding sites on transcription factors and uses computational modelling to develop small-molecule inhibitors. Its broader pipeline includes a STAT3 inhibitor programme targeting inflammatory diseases and cancer, alongside additional oncology research.
Before the Series A round, Altay received nearly $7 million in seed financing from SOLVE FSHD beginning in 2022. The venture-philanthropy organisation has also provided strategic and board-level support to the company.
As part of the financing, four investor representatives will join Altay’s board of directors: Ester Sklarsky of Sound Bioventures, Carl Kilander of HealthCap, Aidan King of Fountain Healthcare Partners, and Chelsea Johnson of Biogen New Ventures.
They will join Executive Chairman Mike Grey, Eric Bjerkholt, and CEO James Breitmeyer on the board.
