Alto Neuroscience stock rises as firm secures $120M to advance depression drug

Alto Neuroscience, a clinical-stage biopharmaceutical company focused on neuropsychiatric disorders, has secured $120 million from institutional and accredited investors to advance ALTO-207, a fixed-dose combination targeting treatment-resistant depression.

ALTO-207 is a novel therapy for treatment-resistant depression that pairs pramipexole, a dopamine receptor agonist, with ondansetron. The combination is designed to enhance antidepressant effects in patients who have not responded to standard treatments.

According to a Monday statement, the financing, led by Commodore Capital, will enable Phase 2b and Phase 3 clinical trials and potentially support a New Drug Application submission if the studies are successful.

The round also drew participation from Dellora Investments, Driehaus Capital Management, Perceptive Advisors, Spruce Street Capital, Venrock Healthcare Capital Partners, Vestal Point Capital, and other institutional investors.

The PIPE includes common stock and pre-funded warrants, with the transaction expected to close tomorrow.

“We appreciate the support from this top-tier investor group, which we believe reflects the growing confidence in Alto’s precision neuroscience strategy and in ALTO-207 as a potential treatment option for patients with significant unmet need,” said Alto Neuroscience’s founder Amit Etkin.

Alto Neuroscience reports 2025 loss as depression drug trials advance

Alto Neuroscience reported its full-year 2025 results and pipeline progress, saying its $177 million cash balance is expected to fund operations into 2028 and support multiple upcoming clinical milestones. The company highlighted advances across its precision psychiatry programs, including the acquisition of ALTO-207.

Alto plans Phase 2b testing in the first half of 2026, followed by a Phase 3 study in early 2027.

The company also expects topline data around the end of the first quarter of 2026 from a Phase 2 proof-of-concept trial of ALTO-101 for cognitive impairment associated with schizophrenia.

For 2025, Alto reported research and development expenses of over $45 million and general and administrative expenses of $20.7 million. The company posted a net loss of around $63 million for the year.

Alto, which trades on the New York Stock Exchange under the ticker ANRO, saw its stock surge around 7% in premarket trading on Monday, per Yahoo Finance.