The British Business Bank has invested in Draig Therapeutics as part of its $65 million Series B financing round.
This marks the first life sciences investment made by the Bank's British Growth Partnership Fund I, following the announcement of the Fund's first close in April this year.
The Bank, including the British Growth Partnership Fund I investment vehicle, is one of the most active direct VC investors in UK life sciences, having invested £263 million in 23 companies over the last five years, and is accelerating deployment into scale ups in the sector.
The financing round was led by new investor Deep Track Capital with participation from Janus Henderson Investors, Marshall Wace and Jefferson Life Sciences.
Founded in 2024 through a partnership between Cardiff University and SV Health Investors, Draig Therapeutics is a Wales-based clinical-stage biopharmaceutical company developing next-generation treatments for neuropsychiatric disorders, including major depressive disorder (MDD).
The funding will be used to accelerate the development of Draig's best-in-class pipeline of highly selective modulators that look to restore the balance of neural signaling. Its lead program, DT-101, is currently being evaluated in Phase 2 clinical trials for the treatment of MDD, with the goal of delivering rapid and robust antidepressant effects, with potential benefits on cognitive impairment.
British Growth Partnership Fund I is an investment vehicle designed to address structural barriers and help pension funds increase their allocations to UK venture capital. The fund invests in high growth UK companies by leveraging the Bank's market access as the largest investor in UK venture capital. BGP Fund I investors include Aegon, Cushon Master Trust and M&G, and this investment demonstrates how pension fund capital is being deployed into UK scale-ups at speed through the British Growth Partnership.
Charlotte Lawrence, Managing Director, Head of Direct Equity at British Business Bank, said:
“Draig Therapeutics is pioneering targeted therapies to tackle some of the most challenging neuropsychiatric disorders. Through British Growth Partnership Fund I, we are deploying UK pension capital into a standout innovator with the capacity to become a global leader, reinforcing the power of British life sciences to drive both breakthrough health outcomes and economic growth.”
Dr Carmine Circelli, Senior Investment Director, Life Sciences at British Business Bank, said:
“Draig Therapeutics is a unique example of the UK's strength in life sciences. Innovations such as its DT-101 programme and selective receptor modulators are highly promising next-generation approaches with strong therapeutic potential. Our investment will help accelerate Draig Therapeutics' pipeline and improve outcomes for patients.”
Ivana Magovčević-Liebisch, PhD, JD, President and Chief Executive Officer of Draig Therapeutics, said:
“This oversubscribed financing marks an exciting milestone for Draig as we continue to advance our transformative, best-in-class pipeline. Major depressive disorder remains one of the largest unmet needs in medicine. This new financing will enable us to accelerate the development of our pipeline and bring us closer to our ultimate goal: to restore the brain to a healthier state and enable patients to live their best lives.”
