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Depression (Mood disorder)

Alto Neuroscience Secures $50 Million in Private Placement Financing for ALTO-207

Strategic Insights

— 1 min read

Alto Neuroscience, a clinical-stage biopharmaceutical company, has announced the successful completion of a private placement financing (PIPE) with gross proceeds of approximately $50 million. The financing was led by Perceptive Advisors, with participation from new and existing institutional investors. Alto plans to use the proceeds to accelerate the development of ALTO-207, a fixed-dose combination of pramipexole and ondansetron, for the treatment of treatment-resistant depression (TRD).

Key Takeaways:

  • Alto secured $50 million in gross proceeds from the private placement financing (PIPE) led by Perceptive Advisors.
  • The financing will be used to accelerate the development of ALTO-207 in TRD, with plans to initiate a Phase 2b study by mid-2026 and a Phase 3 study by early 2027.
  • ALTO-207 is a fixed-dose combination of pramipexole and ondansetron, designed to address the significant unmet need for patients with TRD.
  • The compound demonstrated significant improvements in MADRS in a randomized, placebo-controlled Phase 2a clinical trial, with a mean dose of 4.1mg per day and an adverse event rate similar to placebo.
  • Alto's Precision Psychiatry Platform[TM] measures brain biomarkers to identify which patients are more likely to respond to its product candidates.
  • Alto has a clinical-stage pipeline including novel drug candidates for bipolar depression, major depressive disorder, TRD, and schizophrenia, and other mental health conditions.

Statistics:

  • $50 million: Gross proceeds from the private placement financing (PIPE)
  • 3,832,263: Number of shares of common stock sold in the PIPE
  • $5.914: Price per share of common stock in the PIPE
  • 4,622,251: Number of pre-funded warrants to purchase up to an aggregate of common stock at a purchase price of $5.9139 per pre-funded warrant
  • 0.0001: Exercise price per share of common stock for the pre-funded warrants
  • 10-14%: Potential reduction in dose-limiting adverse events with ALTO-207 compared to pramipexole monotherapy
  • 2026: Planned initiation of Phase 2b study of ALTO-207 in TRD
  • 2027: Planned initiation of Phase 3 study of ALTO-207 in TRD

Sources:

  • Business Wire: "Alto Neuroscience Enters into Securities Purchase Agreement with Institutional and Accredited Investors" - October 20, 2025
  • Business Wire: "Alto Neuroscience Announces Positive Phase 2a Clinical Trial Results for ALTO-207 in Treatment-Resistant Depression" - August 23, 2023
  • Business Wire: "Alto Neuroscience Appoints Tom Perlin, M.D. as Senior Vice President and Chief Medical Officer" - March 15, 2022
  • Business Wire: "Alto Neuroscience Closes $120 Million Series D Financing" - June 28, 2022

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