Alto Neuroscience Secures \$120 Million in Private Placement Financing to Advance ALTO-207 Program

Key Highlights

• Alto Neuroscience, Inc. (NYSE: ANRO) has announced a substantial private placement financing, raising approximately \$120 million before offering expenses.
• The financing is led by Commodore Capital and includes participation from both new and existing biotech-focused institutional investors, such as Dellora Investments, Driehaus Capital Management, Perceptive Advisors, Spruce Street Capital, Venrock Healthcare Capital Partners, Vestal Point Capital, and a large biotech dedicated investor.
• Proceeds will be used to advance the development of ALTO-207, a fixed-dose combination therapy for Treatment Resistant Depression (TRD), through a planned Phase 3 clinical trial and potentially towards a New Drug Application (NDA) submission.
• Alto expects to initiate a Phase 2b study of ALTO-207 in TRD in the first half of 2026 and a Phase 3 study in early 2027.
• After the PIPE, Alto estimates its cash and cash equivalents would be approximately \$275 million as of February 28, 2026, providing ample runway to support the completion of the Phase 3 study and NDA submission if successful.

Details of the Private Placement

• Alto is issuing a total of 2,900,000 shares of common stock at \$20.00 per share, and pre-funded warrants to purchase up to 3,100,000 shares of common stock at \$19.9999 per warrant.
• Each pre-funded warrant has an exercise price of \$0.0001 per share, is immediately exercisable (subject to certain conditions), and will not expire.
• The PIPE is expected to close on March 17, 2026, subject to customary closing conditions.
• Placement agents for the transaction included Jefferies, BofA Securities, TD Cowen, Stifel, William Blair, and Baird.
• Legal counsel for Alto was provided by Cooley LLP, and Latham & Watkins LLP represented the placement agents.
• The securities issued in the PIPE have not been registered under the Securities Act of 1933 and cannot be offered or sold in the United States unless registered or exempt. Alto has agreed to file a registration statement with the SEC for the resale of these shares and shares issuable upon warrant exercise.

ALTO-207: A Potentially Transformative Therapy for Treatment Resistant Depression

• ALTO-207 combines pramipexole (a dopamine D3-preferring D3/D2 agonist, approved for Parkinson’s disease and with demonstrated antidepressant effect) and ondansetron (an antiemetic, selective 5-HT3 receptor antagonist).
• The fixed-dose combination is designed to allow rapid titration and higher dosing by mitigating adverse events typically associated with pramipexole.
• In a randomized, placebo-controlled Phase 2a trial with 32 patients, ALTO-207 met primary and secondary endpoints, demonstrating significantly greater improvements on the MADRS (Montgomery-Asberg Depression Rating Scale) compared to placebo.
• Patients receiving ALTO-207 achieved a mean dose of 4.1mg daily, and the drug was well-tolerated, with adverse event rates similar to placebo during the maintenance period.
• The Phase 2b study is expected to start in the first half of 2026, followed by Phase 3 initiation in early 2027.

Strategic Implications and Potential Impact on Shareholder Value

• This financing positions Alto to advance a potentially first-in-class therapy for TRD—a major unmet need in psychiatry with significant commercial potential.
• Successful completion of the planned Phase 3 study and a positive outcome could lead to NDA submission, which represents a major value inflection point for the company.
• The participation of top-tier institutional investors and substantial funding reflects strong market confidence in Alto’s Precision Psychiatry Platform and its drug development strategy.
• Alto’s estimated cash position post-financing (\$275 million) provides financial stability and reduces near-term capital risk, supporting continued clinical and corporate operations.
• Shareholders should note the issuance of new shares and pre-funded warrants, which may have dilution implications, but also enables the company to progress toward key milestones without immediate need for further financing.

Forward-Looking Statements and Risks

The company has noted that this release contains forward-looking statements, including expectations regarding the closing of the PIPE, use of proceeds, initiation and completion of clinical trials, NDA submission, and anticipated results from ALTO-207. Actual results may differ due to risks such as clinical development delays, regulatory hurdles, and market conditions. Investors should review the company’s “Risk Factors” in its Annual Report and other SEC filings for further information.

Contact Information

For investor and media inquiries:
Nick Smith
Email: [email protected] | [email protected]

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell securities. All forward-looking statements are subject to risks and uncertainties. Investors should conduct their own due diligence and consult their financial advisors before making any investment decisions. Alto Neuroscience’s actual results may differ materially from those indicated by such statements.

View Alto Neuroscience, Inc. Historical chart here