The Finnish start-up Kasvu Therapeutics has raised €30 million ($34 million) in series A financing to support its work developing nonhallucinogenic small molecules to treat neuropsychiatric disorders.
Founded in 2023, Kasvu is based on Eero Castrén and Ilpo Vattulainen’s research at the University of Helsinki. Their work focused on tropomyosin receptor kinase B (TrkB) and its role in neuroplasticity—the brain’s ability to make new neuronal connections.
Many start-ups are working on harnessing the neuroplastic effects of psychedelics to treat depression and other mental health conditions. Many of those have focused on the 5-hydroxytryptamine 2A (5-HT2A) receptor, which is switched on by serotonin, as well as psychedelics like psilocybin and LSD.
But Castrén found that modulating TrkB promotes neuroplasticity independent of 5-HT2A (Nat. Neurosci. 2023, DOI: 10.1038/s41593-023-01316-5). Avoiding the 5-HT2A receptor avoids reproducing the hallucinogenic effects of psychedelics.
Kasvu’s lead drug candidate, KTX-0141, is a positive allosteric modulator of TrkB. It was found by hit-finding screens against a 3D model of the receptor, built by Vattukainen, and its binding pocket. “Within 3 years we have been able to nominate our candidate for clinical development,” says Jami Mandelin, Kasvu’s cofounder and CEO.
Kasvu will be using the series A funding to advance KTX-0141 to clinical trials for treating major depressive disorder; Mandelin estimates that the Phase 1b trial will conclude around the end of 2028.
There are some key differences between Kasvu and other companies that are trying to promote neuroplasticity inspired by psychedelics, Mandelin says. “We target the pocket of the receptor for plasticity. We don’t modify current psychedelics. We have discovered novel chemistry with our pocket.”
