Alto Neuroscience, Inc. (NYSE: ANRO) has announced a private placement financing led by Commodore Capital, which has resulted in gross proceeds of approximately $120 million. The company plans to use the funds to support the development of Alto-207, a fixed-dose combination of pramipexole and ondansetron, through a planned phase 3 clinical trial in treatment resistant depression (TRD), as well as for working capital and general corporate purposes.
The private placement involved the sale of 2,900,000 shares of common stock at a price of $20.00 per share and pre-funded warrants to purchase up to an aggregate of 3,100,000 shares of common stock at a purchase price of $19.9999 per pre-funded warrant. Alto Neuroscience estimates its cash and cash equivalents would have been approximately $275 million as of February 28, 2026, after giving effect to the anticipated net proceeds from the private placement.
The company intends to initiate a phase 2b study of Alto-207 in TRD in the first half of 2026 and a phase 3 study in early 2027. If the phase 3 study is positive, Alto Neuroscience plans to submit a New Drug Application (NDA). Alto Neuroscience believes the financing will provide the resources needed to advance Alto-207 through a phase 3 study, reflecting growing confidence in its precision neuroscience strategy and Alto-207 as a potential treatment option for patients with significant unmet needs.
Alto-207, the focus of the funding, is a fixed-dose combination of pramipexole, a dopamine D3-preferring D3/D2 agonist approved for the treatment of Parkinson’s disease with demonstrated antidepressant effect, and ondansetron, an antiemetic, selective 5-HT3 receptor antagonist. In a randomized, placebo-controlled phase 2a clinical trial, patients receiving Alto-207 showed significantly greater improvements on MADRS compared to placebo, and the drug was well tolerated.
Alto Neuroscience is a clinical-stage biopharmaceutical company focused on developing personalized and highly effective treatment options for neuropsychiatric disorders. The company's precision psychiatry platform™ measures brain biomarkers to better identify which patients are more likely to respond to its product candidates. Alto's clinical-stage pipeline includes novel drug candidates in bipolar depression, major depressive disorder, TRD, schizophrenia, and other mental health conditions. The market has reacted to these announcements by moving the company's shares 0.88% to a price of $17.17. If you want to know more, read the company's complete 8-K report here.
