Why Alzheimer’s Drug Developers Are Gaining VC Interest
Adel, Illimis, and Amyloid secure major investments VCs anticipate significant growth in Alzheimer’s market
In recent years, despite a cooling investment sentiment in the biotech venture sector, South Korean biotech companies developing dementia treatments are receiving significant attention from venture capital (VC) firms.
South Korean biotech companies focused on dementia treatments are defying a general cooling trend in biotech investments, drawing significant attention from venture capital firms. On August 1st, Adel Pharma, a key player in Alzheimer's disease treatment development, secured a $12.7 million Series B bridge investment. The round included both existing investors, such as StoneBridge Ventures and KDB Industrial Bank, and new backers like Yuanta Investment, Smilegate Investment, and Mint Venture Partners. The capital will support the ongoing Phase 1 clinical trial of their tau antibody 'ADEL-Y01' in the U.S. and advance the preclinical R&D of their APOE4 antibody 'ADEL-Y04.'
A biotech investment officer involved in the round remarked, "Dementia treatments represent a market with the potential to grow even larger than the oncology market. With global interest in this condition on the rise, South Korean VCs are increasingly directing funds towards companies in this space."
Historically, biotech firms working on Alzheimer's treatments have consistently attracted VC funding, even during downturns. For instance, Illimis Therapeutics raised $15 million in a Series A round in April last year, with participation from previous pre-Series A investors like Woori Venture Partners and new entrants, including KDB Industrial Bank and GS Ventures.
In May 2022, Amyloid Solution, focused on degenerative neurological diseases, secured $33.6 million in Series C funding, bringing their total raised to $60.6 million since their founding in 2017. Similarly, Biorchestra, which is developing RNA-based therapeutics for brain diseases, raised $40.7 million in Series C funding in February, with participation from both financial and strategic investors.
Industry insiders suggest that since the launch of Alzheimer’s treatments like Aduhelm, Leqembi, and Kisunla from 2021 to the present, VC firms are increasingly focused on the potential success of new Alzheimer’s drugs and are expected to actively invest in related companies.
The introduction of Alzheimer’s treatments such as Aduhelm, Leqembi, and Kisunla has heightened VC interest in companies developing new therapies. An anonymous CEO of an Alzheimer's drug development company commented, “With recent FDA approvals for Leqembi and Kisunla, the Alzheimer’s market is poised for significant growth, with projections indicating potential blockbuster sales reaching billions of dollars.”
A biotech investment officer with expertise in neuroscience echoed this sentiment, noting, “Dementia treatment development remains a relatively untapped blue ocean in the drug industry. While earlier treatments like donepezil only managed symptoms, new disease-modifying therapies (DMTs), including amyloid-beta antibodies, are now emerging. This shift is driving a steady increase in VC interest in the field.”