Arctic Therapeutics Secures US$21.5 Million Financing for Clinical Pipeline Expansion

REYKJAVIK, Iceland AND PHILADELPHIA, October 21, 2026 /CourierPR/ -- Arctic Therapeutics, a clinical-stage biopharmaceutical company based in Iceland, has secured US$21.5 million in financing, surpassing initial expectations. The round, led by investment firm Pekron, Investcorp-backed Sanos Group, Icelandic investment company Kaldbakur, and Landvættir, an Icelandic venture capital fund managed by AxUM Securities, was increased following strong investor demand. This funding follows the company's oversubscribed approximately US$31 million Series A round, which was allocated towards advancing the company's lead assets, AT-001 and AT-004.

The new financing will primarily be used to advance AT-002 and AT-003 towards clinical development. These programs are part of Arctic Therapeutics' broader pipeline, which includes its lead programs, AT-001 and AT-004, in rare and common forms of dementia and inflammatory skin diseases, respectively. AT-001 is an oral investigational treatment designed to prevent and disrupt the aggregation of amyloid, tau, and related toxic aggregation proteins. The company has completed the 12-month core treatment period of its pivotal Phase IIb/III study in Hereditary Cystatin C Amyloid Angiopathy (HCCAA), a rare familial form of dementia, with an approved extension continuing to evaluate longer-term treatment.

AT-004, the company's second lead clinical program, is an acetylcholinesterase inhibitor targeting the non-neuronal cholinergic anti-inflammatory pathway, a biological system present in human skin involved in regulating inflammation and pro-inflammatory cytokines such as TNF-α. A Phase IIa signal finding proof-of-concept study in acne vulgaris has been completed, demonstrating favorable safety, tolerability, and generating encouraging efficacy signals supporting further clinical development. The program is initially focused on acne but has potential applications across other inflammatory skin diseases, including atopic dermatitis, rosacea, psoriasis, and wound healing.

The company's pipeline also includes AT-002, a peptide mimetic of the kinase inhibitory region (KIR) domain of suppressor of cytokine signaling 1 (SOCS1), a potent inhibitor of the JAK-STAT signaling pathway. The program is initially being developed for autoimmune uveitis, with potential applications across other autoimmune and inflammatory diseases, including lupus, psoriasis, and juvenile dermatomyositis. AT-003 is a small-molecule mitophagy and autophagy modulator designed to counteract the consequences of aberrant activity of CLEC16A. Genetic variation involving CLEC16A has been strongly associated with 16 autoimmune diseases, including lupus, rheumatoid arthritis, multiple sclerosis, and type 1 diabetes, as well as Parkinson's disease.

Earlier this year, Arctic Therapeutics participated in the acquisition of NB-001, a clinical-stage program previously owned by US-based Nobias Therapeutics. The asset, now known as SYN-001, forms the foundation of newly established Synaptiq Therapeutics, which was launched in July 2026 by a consortium including Arctic Therapeutics, Sanos Group, an Icelandic investment fund managed by AxUM Securities, and investors in Nobias Therapeutics, including US-based Medical Excellence Capital. SYN-001 is being developed for the treatment of neuropsychiatric symptoms associated with 22q11.2 deletion syndrome (22q11DS). The program has received FDA Rare Pediatric Disease Designation and Orphan Drug Designation and, following positive Phase II clinical results, is being prepared for a Phase IIb clinical trial in North America and Europe.

Arctic Therapeutics, established in 2015 as a spin-off from the US-based Center for Applied Genomics (CAG), a research center at the Children's Hospital of Philadelphia, continues to advance its pipeline of treatments for diseases with significant unmet medical need. The company's diversified portfolio reflects its commitment to translating human genetic discoveries into safe and effective treatments, with operations in Iceland and the United States, alongside research and clinical collaborations across Europe.