Allyx Therapeutics closes $26.5M Series A to push Alzheimer's drug into Phase 2
What's the deal? New Haven-based Allyx Therapeutics, a Yale University spinout, has closed a $26.5M series A round to fund a Phase 2 clinical trial for ALX-001 — an experimental oral therapy designed to slow and potentially reverse some damage caused by Alzheimer's disease. The trial is expected to launch in Australia in late 2025.
The round drew support from existing backers including Bristol Myers SquibbDealroom has a profile for this one. Try Dealroom → and Canaan PartnersDealroom has a profile for this one. Try Dealroom →. Allyx has now raised over $60M in total, including nearly $12M in grants from organisations like the National Institutes of HealthDealroom has a profile for this one. Try Dealroom → and the Michael J. Fox FoundationDealroom has a profile for this one. Try Dealroom →.
Founded in 2018 by Yale neurologist Dr. Stephen Strittmatter, biotech entrepreneur Dr. Stephen BlochDealroom has a profile for this one. Try Dealroom →, and scientist-turned-entrepreneur Timothy SiegertDealroom has a profile for this one. Try Dealroom →, Allyx operates with just three employees. It relies on consultants and contract research organisations for manufacturing, regulatory work, and clinical trials.
Why now? An estimated 7.2 million Americans aged 65 and older live with Alzheimer's dementia — a figure projected to nearly double by 2060. Current approved treatments like Leqembi and Kisunla focus on removing amyloid plaques from the brain, but questions persist about their benefits, costs, and side effects.
Allyx is pursuing a different strategy. Rather than targeting plaque directly, ALX-001 aims to protect brain cells and the connections between them from Alzheimer's-related damage. It is also being developed as a pill, unlike some approved therapies that require intravenous infusions.
"Most have focused on clearing amyloid plaque from the brain," Siegert said. Allyx believes protecting neurons offers a complementary — and potentially more effective — path.
What could go wrong? Alzheimer's drug development is notoriously difficult. Many promising candidates have failed in late-stage trials, and a Phase 2 study is no guarantee of eventual approval. Allyx's lean three-person team, while cost-efficient, means the company is heavily dependent on external partners to execute complex clinical work.
The competitive landscape is also crowded. Large pharmaceutical companies are pouring billions into Alzheimer's research, and Allyx will need strong Phase 2 results to attract the capital required for larger pivotal trials.
The signal: Bristol-Myers SquibbDealroom has a profile for this one. Try Dealroom →'s continued backing is notable — the pharma giant originally developed the ALX-001 compound and is now reinvesting as a corporate backer, suggesting confidence in the neuroprotective approach it once housed internally. With Allyx still at the early stage and operating on a skeleton crew, the series A essentially bets that a lean, grant-supplemented model can push a candidate through Phase 2 in one of drug development's highest-failure-rate therapeutic areas. A strong efficacy signal in Australia could reshape how investors value synapse-protecting strategies relative to the dominant amyloid-clearing paradigm.
Read more: Hartford Business Journal
