Amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig’s disease, is a progressive neurodegenerative disease that affects nerve cells in the brain and spinal cord. There is currently no cure for ALS, making the need for developing effective treatments urgent. This has led to increasing interest and investment from both traditional and more specialized investment funds into ALS drug development companies and technologies. Some key investment funds focused on financing innovative ALS therapies include ALS Investment Fund, WuXi AppTec, ARCH Venture Partners and the Dementia Discovery Fund. These investment funds provide critical financing to push promising ALS drug candidates through preclinical research and clinical trials.
ALS Investment Fund Invests Exclusively in ALS Drug Development
The ALS Investment Fund is unique in that it focuses investments exclusively in companies developing treatments for ALS. Formed in 2013, it is backed by partners including technology entrepreneur Augie Nieto, who has ALS himself. The fund has invested over $40 million into around 20 ALS drug development companies. Key investments include in companies like Amylyx and QurAlis. Amylyx recently had success with its drug AMX0035, which was approved by the FDA in 2022 for ALS based on a Phase 2 study showing it slowed disease progression. The ALS Investment Fund participated in Amylyx’s Series B financing. QurAlis is developing compounds to restore STMN2 levels, which are depleted in ALS patients, and the ALS Investment Fund was an early investor in the company’s $8.8M Series A round.
WuXi AppTec Invests Broadly in Early Stage Biotechs Including ALS Focused Startups
As a leading global contract research organization, WuXi AppTec has an active corporate venture fund that strategically invests in nascent biotech companies developing innovative therapies, including in neurodegenerative diseases like ALS. For example, WuXi participated in a $32 million Series A round for Verge Genomics in 2018. Verge Genomics leverages human genomics data combined with machine learning to accelerate ALS drug discovery. In another investment, WuXi co-led an $11 million Series A for QurAlis in 2016 to support development of its ALS programs. Beyond backing individual companies, WuXi provides integrated contract research services spanning drug discovery through manufacturing to help accelerate development timelines.
ARCH Venture Partners Funds Multiple Innovative ALS Drug Developers
ARCH Venture Partners is a leading early stage venture capital firm investing in breakthrough biotech companies, including those targeting ALS. For example, ARCH participated in multiple financing rounds for Avicena Group, which developed a compound called Nijiritide to treat ALS. ARCH has also invested in Amylyx’s rounds during the company’s early stages, and was an early backer of QurAlis as well. In addition, ARCH co-led a $25 million Series B round in 2015 for BrainStorm Cell Therapeutics to support its NurOwn stem cell therapy for ALS. This cell therapy involves taking a patient’s own stem cells from bone marrow, differentiating them into neuron-supporting cells, then transplanting them back into the patient intrathecally.
Dementia Discovery Fund Brings Investment Firepower to Neurodegenerative Disease Space
The Dementia Discovery Fund (DDF) is a specialist venture capital fund focused on discovering and developing breakthrough treatments for dementia, including emerging approaches for ALS given its status as a neurodegenerative disease. The DDF was formed through a unique collaboration between government, industry, charities and VCs to provide financing for innovative neuroscience drug discovery. The fund participated in QurAlis’s Series B financing in 2020, enabling further development of its pipeline targeting specific genetic drivers of ALS. Overall, having dedicated investment funds like the ALS Investment Fund plus VC firms with expertise in biotech and neurodegenerative diseases helps drive capital and drug development momentum for this devastating illness.
There is increasing interest and investment activity from both specialist and generalist venture capital firms into ALS drug development companies and technologies, helping drive momentum for this space. Key investors providing critical financing for innovative ALS treatments include ALS Investment Fund, WuXi AppTec, ARCH Venture Partners, Dementia Discovery Fund and others.