Icelandic Biotech Firm Arctic Therapeutics Secures €26.5M for Dementia and Skin Disease Research

Arctic Therapeutics (ATx), an Iceland-based biotechnology company specializing in drug discovery, has successfully raised €26.5 million in a heavily oversubscribed Series A funding round. The investment, supported by notable backers such as EIC Fund, Kaldbakur, Sanos Group, Cerebrum DAO, and The Lurie Family Foundation, will accelerate the clinical development of the company’s leading drug candidates, AT-001 and AT-004. This follows an earlier funding round in which the company secured $13.3 million.

Icelandic Biotech Firm Arctic Therapeutics Secures €26.5M for Dementia and Skin Disease Research
Icelandic Biotech Firm Arctic Therapeutics Secures €26.5M for Dementia and Skin Disease Research

Arctic Therapeutics (ATx), an Iceland-based biotechnology company specializing in drug discovery, has successfully raised €26.5 million in a heavily oversubscribed Series A funding round. The investment, supported by notable backers such as EIC Fund, Kaldbakur, Sanos Group, Cerebrum DAO, and The Lurie Family Foundation, will accelerate the clinical development of the company’s leading drug candidates, AT-001 and AT-004. This follows an earlier funding round in which the company secured $13.3 million.

Founded in 2015 as a spin-off from the Center for Applied Genomics at the Children’s Hospital of Philadelphia, ATx focuses on leveraging applied genomics to tackle complex and underserved medical conditions. Its research is particularly centered on familial dementia, including Alzheimer’s disease, and inflammatory skin diseases such as acne vulgaris. The funding aims to propel the company’s drug candidates through advanced clinical stages, addressing critical gaps in treatment for these conditions.

CEO and co-founder Ivar Hakonarson described the funding as a pivotal step forward, stating, “This funding represents a critical milestone in our journey to address significant unmet medical needs, from familial forms of dementia and Alzheimer’s to novel treatments for inflammatory skin diseases.” He emphasized the strategic value that the new investors bring, which is expected to enhance the company’s progress toward groundbreaking therapies.

The funds will primarily support two major initiatives. The first involves the continued clinical development of AT-001, an oral treatment aimed at preventing the aggregation of harmful amyloid proteins in the brain. Approved last year by the European Medicines Agency (EMA) for a pivotal phase IIb/III trial targeting Hereditary Cystatin C Amyloid Angiopathy (HCCAA), AT-001 is also being explored for broader applications in familial dementia and Alzheimer’s disease.

The second focus is on AT-004, which targets acne vulgaris and other inflammatory skin conditions. The company plans to initiate a phase IIa clinical trial in Europe, with future studies expanding its application to diseases such as atopic dermatitis, rosacea, and psoriasis. These efforts aim to address the unmet needs of patients suffering from chronic inflammatory skin disorders.

The company has also strengthened its governance with the addition of Jeppe Ragnar Andersen, CEO of Sanos Group, to its board of directors. Andersen noted the alignment between Sanos Group’s dermatological expertise and ATx’s therapeutic focus, commenting, “We look forward to supporting the ATx team on achieving its goal of bringing forward innovative treatments for dementia and skin diseases to millions of patients.”

ATx’s advancements have garnered attention across Europe. The company was selected last year to join the EIC Scaling Club, an exclusive network for high-potential European scale-ups. This initiative aligns with the EIC Fund’s goal of supporting transformative innovations in healthcare and other critical fields.

Svetoslava Georgieva, Chair of the EIC Fund Board, highlighted the importance of investing in solutions to address dementia, noting, “In Europe alone, dementia affects over ten million people – placing immense strain on families, healthcare systems, and economies. By providing an equity investment in Arctic Therapeutics, the EIC Fund is supporting groundbreaking preventive treatments that have the potential to change the trajectory of this crisis.”

With its expanding portfolio and robust support from investors, ATx continues to make strides in genomic-driven drug development, aiming to significantly impact the lives of patients worldwide.