Iceland-based biopharmaceutical company Arctic Therapeutics (ATx) has closed an oversubscribed $21.5 million equity financing round led by Pekron, Investcorp-backed Sanos Group, Kaldbakur and Landvættir, an Icelandic venture capital fund managed by AxUM Securities.
The financing was increased following investor demand and will primarily support the advancement of two pipeline candidates, AT-002 and AT-003, towards clinical development.
Founded in 2015 by Dr. Hakon Hakonarson as a spin-off from the US-based Center for Applied Genomics, Arctic Therapeutics develops investigational treatments based on human genetic research. Its co-founders also include CEO Ivar Hakonarson and Chief Scientific Advisor Dr. Charlly Kao.
The company operates in Iceland and the United States, with research and clinical collaborations across Europe. Its development activities focus on neurological disorders, autoimmune diseases and inflammatory skin conditions.
AT-002 is a peptide-based therapeutic candidate targeting the JAK-STAT signalling pathway through the SOCS1 regulatory mechanism. It is initially being developed for autoimmune uveitis, an inflammatory eye condition.
AT-003 is a small-molecule candidate designed to regulate mitophagy and autophagy, cellular processes involved in removing damaged mitochondria and other cellular components. The program targets biological mechanisms associated with CLEC16A, a gene linked to several autoimmune disorders.
The new financing follows Arctic Therapeutics’ previously announced approximately $31 million Series A round, which supported development of its lead programs, AT-001 and AT-004.
AT-001 is an investigational oral treatment being studied for rare hereditary dementia and Alzheimer’s disease. The company has completed the 12-month core treatment period of its Phase IIb/III study in hereditary cystatin C amyloid angiopathy, while a Phase IIa biomarker study involving patients with mild cognitive impairment and mild Alzheimer’s disease is ongoing.
AT-004 targets inflammatory skin conditions. The company has completed a Phase IIa proof-of-concept study evaluating the treatment in patients with acne vulgaris.
Arctic Therapeutics also plans to pursue partnering and out-licensing opportunities for AT-001 and AT-004 while using the latest financing to expand the clinical development potential of its earlier-stage programs.
