Kasvu raises €30M for depression drug targeting TrkB
Finnish biotech Kasvu Therapeutics has raised €30 million in Series A financing to take its lead depression candidate into clinical development, adding to a growing number of European investments in drugs targeting TrkB, a receptor involved in the brain’s ability to form and adapt neural connections.
Why it matters: Kasvu aims to reproduce the neuroplasticity benefits associated with psychedelics without their hallucinogenic effects. The goal is a rapid-acting, long-lasting antidepressant suitable for use at home, although that promise remains untested in humans.
The financing: Hadean Ventures led the round, joined by new investors Tesi, the Finnish Drug Discovery Center and Stephen Industries. Existing backers Innovestor Life Science Fund, Nordic Science Investments and Helsinki University Funds also participated.
- The money will fund studies needed to begin human testing of lead candidate KTX-0141 and its subsequent Phase 1/1b development in major depressive disorder.
How it works: KTX-0141 is a small molecule designed to amplify TrkB signaling in response to BDNF, a naturally occurring protein that supports neuronal function and plasticity. Rather than switching the receptor on indiscriminately, Kasvu says its approach preserves the pathway’s physiological control.
- The drug avoids engaging 5-HT2A, the serotonin receptor responsible for psychedelics’ hallucinogenic effects.
- Kasvu reported enhanced structural and functional neuroplasticity in preclinical studies, with no hallucinogenic activity observed in a standard animal model.
Backstory: Founded in 2023, Kasvu builds on University of Helsinki professor Eero Castrén’s research into BDNF and TrkB. His team’s work identified direct binding to TrkB as a mechanism through which psychedelics can promote neuroplasticity.
- Kasvu’s founders used a computer-generated 3D model of the receptor to develop compounds targeting the same binding pocket while remaining structurally distinct from psychedelics.
The big picture: Kasvu’s financing adds to a series of European moves around TrkB this year, spanning psychiatric, neurodevelopmental and neurodegenerative conditions.
- Fragile X syndrome: Barcelona-based Connecta Therapeutics raised €3.1 million to complete a Phase 2a trial of CTH120, another small molecule targeting TrkB. Initial efficacy results are expected in mid-2027.
- Alzheimer’s disease: Sweden’s AlzeCure licensed its NeuroRestore platform to Denmark’s QuantumCell in July. Lead candidate ACD856 positively modulates both BDNF/TrkB and NGF/TrkA signaling.
What’s next: Kasvu expects clinical development to begin in the second half of 2027. Its Phase 1/1b program will include an initial efficacy assessment in patients with major depressive disorder, with a control arm, to guide further development.
