Stephen Industries participates in Kasvu Therapeutics’ €30 million Series A financing round
Stephen Industries is happy to announce its latest investment in Kasvu Therapeutics (“Kasvu”), a company developing a new generation of neuroplastogens for neuropsychiatric and neurodegenerative disorders. The €30 million Series A financing round was led by Hadean Ventures with significant participation from Tesi (Finnish Industry Investment) and existing investor Innovestor Life Science Fund. Other new participants included the Finnish Drug Discovery Center and Stephen Industries, as well as existing seed investors Nordic Science Investments and Helsinki University Funds.
Kasvu is developing a new class of small-molecule potentiators (positive allosteric modulators – PAMs) of TrkB (Tropomyosin Receptor Kinase B) designed to directly enhance the neuroplasticity pathways associated with the rapid and long-lasting antidepressant effects of psychedelics, but without engaging 5-HT2A, the serotonin receptor responsible for their hallucinogenic effects.
Rather than indiscriminately activating TrkB, Kasvu’s lead candidate KTX-0141 is designed to selectively amplify the brain’s endogenous BDNF (Brain Derived Neurotrophic Factor) signalling while preserving physiological control of the pathway. In preclinical studies, KTX-0141 has demonstrated enhanced TrkB signalling and robust structural and functional neuroplasticity, together with favourable drug-like properties and a highly encouraging preclinical safety profile. No hallucinogenic activity has been observed in the industry-standard preclinical model.
The new funds will support Kasvu’s ongoing IND/CTA-enabling activities to advance KTX-0141, through Phase 1/1b clinical development targeting major depressive disorder (MDD). Clinical development is expected to begin in the second half of 2027 and will include an initial efficacy assessment in patients with MDD including a control arm, which will inform the further clinical development path.
About Kasvu Therapeutics
Kasvu Therapeutics is developing a new generation of small-molecule TrkB positive allosteric modulators (PAMs) for treating neuropsychiatric and neurodegenerative disorders. Founded in 2023 from cutting-edge research at the University of Helsinki, Kasvu is leveraging pioneering discoveries in BDNF/TrkB biology to develop potent and highly-selective neuroplastogens designed to deliver the neuroplasticity benefits associated with psychedelics without activating the 5-HT2A receptor responsible for their hallucinogenic effects.
Kasvu’s lead programme KTX-0141 has demonstrated robust neuroplasticity, strong CNS penetration and drug-like properties in preclinical studies, without evidence of hallucinogenic activity in preclinical models. The programme is advancing through IND/CTA-enabling studies, with clinical development planned to begin in the second half of 2027 in major depressive disorder. The Company’s proprietary TrkB discovery platform also has potential applications across a broad range of neuropsychiatric and neurodegenerative diseases.
About Major Depressive Disorder (MDD) and Therapeutic Neuroplastogen Approaches
MDD remains a major area of unmet medical need, affecting an estimated 322 million people worldwide. In the US alone, approximately 31 million adults live with MDD and around 19 million receive treatment each year. Despite the availability of multiple antidepressant therapies, approximately 31% of treated patients do not achieve an adequate response to first- and second-line treatments and are considered to have treatment-resistant depression (TRD). For these patients, alternative treatment options can be associated with challenging side effects and can be resource-intensive and burdensome for patients and healthcare providers.
Psychedelics are rapid-acting neuroplasticity therapies that have demonstrated significant potential in depression, but broader access is constrained by hallucinogenic effects driven by activity at the 5-HT2A (serotonin) receptor and the associated need for supervised, in-clinic administration and patient monitoring. By directly modulating TrkB without engaging 5-HT2A, Kasvu aims to develop a neuroplastogen combining the potential for rapid and long-lasting efficacy with a safety and treatment profile that could ultimately support convenient at-home administration and broaden patient access.
