Reunion Neuroscience raises $103 million

Privately-owned psychedelic drug development company Reunion Neuroscience Inc. raised $103 million in a Series A financing co-led by MPM BioImpact and Novo Holdings, with participation from Arkin Bio Capital, Mitsui & Co. Global Investment, Plaisance Capital, FemHealth Ventures, and Palo Santo. Reunion was previously spun out from the ketamine clinic group Field Trip Health.

RE104

The money will be used to advance the company’s primary drug RE104 which is designed as a safe, fast-acting, short-duration therapy for mental health issues. The treatment typically lasts three to four hours versus seven to eight hours in a typical trip therapy.

In addition to that, the company said it will support the “RECONNECT” Phase 2 clinical trial for RE104 in postpartum depression (PPD) and expansion into other psychiatric indications of high unmet need, including adjustment disorder in cancer (ADC). Results from the RECONNECT Trial are expected in the second quarter of 2025.

“This financing is a significant milestone for Reunion Neuroscience, and we are grateful to have the backing of MPM BioImpact and Novo Holdings, as well as a syndicate composed of top-tier institutional healthcare investors,” said Greg Mayes, President and Chief Executive Officer of Reunion. “Their collective support reflects Reunion’s potential to meaningfully transform mental health treatment for the large population of patients underserved by the treatment paradigm available under the current standard of care. We are committed to unlocking the full potential of RE104 to improve the lives of patients and families in our mission to address the worldwide mental health crisis.”

How it works

Reunion said that RE104 targets the serotonin 2A receptor (5HT2AR), which is the recognized target for the antidepressant effects of psychedelic compounds. Treatment using RE104 requires only about half a day in-clinic, a significantly shorter time commitment than required for longer-duration psychedelics, like psilocybin and MDMA.

“Reunion is leading the charge to dramatically shift the way severe mental health disorders are treated,” said Dr. Ansbert Gadicke, M.D., Managing Partner of MPM BioImpact. “We are proud to back Reunion’s world-class team of experienced neuroscience drug developers and support the clinical advancement of RE104, which has the potential to provide patients with meaningful and durable antidepressive effects.”

Reunion said it expects to start enrolling patients this quarter in the RECONNECT Trial, a Phase 2, Multicenter, Randomized, Double-Blind, Parallel-Group, Active Dose-Controlled study evaluating RE104 in moderate and severe PPD patients (NCT06342310).

“We see a significant opportunity for RE104 to become a best-in-class therapy and are deeply encouraged by its potential to improve outcomes for patients facing limited treatment alternatives in postpartum depression and other mental health disorders,” said Natalie Sacks, M.D., Venture Partner in the Venture Investments group at Novo Holdings US.

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