Engrail Therapeutics Closes ‘Oversubscribed’ Series B Funding Round with $157 Mn

The latest capital infusion will be used to propel Engrail's pipeline forward, facilitating progress through various stages of clinical development, the drugmaker said.

Engrail Therapeutics, a precision neuroscience company dedicated to enhancing patient lives through innovative therapies, has closed the Series B financing round, securing a remarkable $157 million.

The oversubscribed round was co-led by new investors F-Prime Capital, Forbion, and Norwest Venture Partners, with additional participation from RiverVest Venture Partners, Red Tree Venture Capital, abrdn Inc., Ysios Capital, Longwood Fund, Eight Roads Ventures.

The existing founding investor Pivotal Life Sciences also participated in the funding round.

In August 2021, it had raised $64 million in Series A financing round. The recent funding brings Engrail's total raised capital since its establishment in 2019 to over $220 million.

The latest capital infusion will be used to propel Engrail's pipeline forward, facilitating progress through various stages of clinical development, the drugmaker said.

Engrail Therapeutics’ Offerings

Cofounded by former Cipla executive Vikram Sudarsan and Stephan Cunningham, Engrail focuses on developing therapies to address the pressing needs of patients grappling with mental health conditions such as anxiety disorders, depression, posttraumatic stress disorder (PTSD), and rare neurodegenerative diseases.

Vikram Sudarsan, Ph.D., president & CEO of the precision neuroscience biotech company expressed gratitude for the robust financial support and emphasized the company's readiness to achieve numerous value-creating milestones.

“We look forward to completing our ongoing ENX-102 phase 2 study in generalized anxiety disorder and advancing the rest of our pipeline into clinical development,” Sudarsan said.

Sudarsan is a well-known name in the industry having been credited for building a pipeline of branded products to treat CNS disorders and respiratory diseases as a CEO of Cipla Technologies.

He has also led strategy at Cipla New Ventures and has served on the Boards of Stempeutics, Chase Pharmaceuticals, Cipla Technologies, and Cipla USA.

“Engrail was fortunate to have been incubated under a tremendous commitment from Pivotal Life Sciences. We are excited to start the next chapter of our journey with some of the best thought partners in neuroscience and life sciences investing in our success,” he added.

Expansion of Engrail Board

The infusion of fresh capital has also brought a notable expansion to Engrail's board of directors, with accomplished individuals joining the team.

Stacie Weninger, Ph.D. from F-Prime, Jasper Bos, Ph.D. from Forbion, Tiba Aynechi, Ph.D. from Norwest, Niall O’Donnell, Ph.D. from RiverVest, and Heath Lukatch, Ph.D. from Red Tree have all assumed positions on the Engrail board.

Stacie Weninger, Ph.D., board member and president of F-Prime Biomedical Research Initiative, expressed confidence in Engrail's pipeline and management team, underscoring the excitement surrounding the development of transformative therapies for patients.

Peter Bisgaard, chairman, Engrail’s board of directors and MD, Pivotal Life Sciences, echoed this sentiment, expressing pride in Engrail's rapid evolution from concept to a clinical-stage neuroscience company within a remarkably short span of time.

“We have assembled a strong Series B syndicate that positions the organization well for significant growth and pipeline advancement,” he noted.

Recent Healthcare Fundings

This week, healthcare space saw significant funding announcements.

On Monday, Hippocratic AI – a company building the first safety-focused Large Language Model (LLM) for healthcare, bagged $53 million in a Series A funding round. The round, which valued the company at $500 million, marked a significant milestone for the healthcare tech industry.

Last week, HiLabs, a prominent provider of AI-powered solutions designed to manage and unlock the potential of dirty data in healthcare, bagged a $39 million Series B financing round. Eight Roads Ventures and F-Prime Capital participated in the fundraiser too.

Similarly, Bengaluru-based biotechnology company, Pandorum Technologies secured an investment of $11 million in a Pre-Series B funding round. Pandorum specializes in tissue engineering and regenerative medicine focusing on advancing its technology platform for liver, lung, and neuronal tissue regeneration.