Cardiff University spinout Draig Therapeutics has secured nearly £50 million in an oversubscribed Series B equity funding round, boosting its efforts to develop new therapies for neuropsychiatric disorders including major depressive disorder (MDD).
Funding Details
The latest round raised £48.5 million, led by new investor Deep Track Capital, with participation from Janus Henderson Investors, Marshall Wace, and Jefferson Life Sciences. The UK Government’s economic development bank, the British Business Bank, also participated through its British Growth Partnership Fund I. This follows a £107 million Series A round last year, which was the largest ever secured by a Welsh firm.
The funding from the British Business Bank comes from an investment vehicle backed by pension funds including Aegon, Cushon Master Trust, and M&G. It marks the first time the fund has been deployed to support a Welsh-based company.
Company Background and Pipeline
Draig Therapeutics was founded in 2024 through a partnership between Cardiff University and SV Health Investors. The company is pioneering highly selective modulators aimed at restoring the balance of neural signalling. Its lead programme, DT-101, is currently in phase two clinical trials for the treatment of MDD, with the goal of delivering rapid and robust antidepressant effects and potential benefits on cognitive impairment.
Ivana Magovcevic-Liebisch, president and chief executive of Draig Therapeutics, said, “This oversubscribed financing marks an exciting milestone for Draig as we continue to advance our transformative, best-in-class pipeline. Major depressive disorder remains one of the largest unmet needs in medicine. This new financing will enable us to accelerate the development of our pipeline and bring us closer to our ultimate goal: to restore the brain to a healthier state and enable patients to live their best lives.”
Impact and Future Plans
The new funding will be used to accelerate the development of Draig’s pipeline of selective modulators. The British Business Bank’s investment demonstrates how pension fund capital is being deployed into UK scale-ups via its British Growth Partnership Fund.
Charlotte Lawrence, managing director, head of direct equity at British Business Bank, said: “Draig Therapeutics is pioneering targeted therapies to tackle some of the most challenging neuropsychiatric disorders. Through British Growth Partnership Fund I, we are deploying UK pension capital into a standout innovator with the capacity to become a global leader, reinforcing the power of British life sciences to drive both breakthrough health outcomes and economic growth.”
Dr Carmine Circelli, senior investment director, life sciences at British Business Bank, added: “Draig Therapeutics is a unique example of the UK’s strength in life sciences. Innovations such as its DT-101 programme and selective receptor modulators are highly promising next-generation approaches with strong therapeutic potential. Our investment will help accelerate Draig Therapeutics’ pipeline and improve outcomes for patients.”
Last year’s £107 million investment round into Draig was led by Access Biotechnology, alongside SV Health Investors and ICG, Canaan Partners, SR One, Sanofi Ventures, and Schroders Capital.
