The success of Reunion Neuroscience’s lead psychedelic candidate in a postpartum depression (PPD) trial has provided a last minute boost to its Series A funding round.
As certain efficacy parameters were achieved in the RECONNECT study (NCT06342310) evaluating RE104 as a treatment for postpartum depression, the Series A final tranche increased by $30m. The late adjustment means the total amount raised in the Series A reaches $133m, up from the $103m originally announced in May 2024.
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US-based Reunion said the raise will fund the ongoing REKINDLE Phase II clinical trial (NCT07002034) investigating RE104 as a treatment for adjustment disorder (AjD) in cancer and other medical illnesses. Adjustment disorder is a mental health condition where a person develops emotional or behavioural symptoms in response to a stressor.
The biotech will also use the proceeds to push RE104, a prodrug of 4-OH-DiPT, into a generalised anxiety disorder (GAD) trial. The Phase II study, called RECLAIM, is expected to begin in Q1 2026.
It is estimated that GAD affects 6.8 million adults in the US each year, with around half of patients failing to respond to initial pharmaceutical interventions such as selective serotonin reuptake inhibitors (SSRIs) and serotonin and norepinephrine reuptake inhibitors (SNRIs).
Dr Natalie Sacks, venture partner at Novo Holdings, the investment arm of Novo Nordisk that co-led the Series A, said: “We believe RE104 is a best-in-class therapy, with potential to improve outcomes for patients with limited treatment alternatives. The Reunion team has achieved important clinical validation for RE104, and we look forward to supporting the company as it advances this promising candidate for the treatment of additional underserved mental health conditions.”
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By GlobalDataReunion announced the positive RECONNECT data in August 2025. A single subcutaneous dose of RE104 in adult female patients with moderate-to-severe PPD demonstrated clinically meaningful improvement in depression score, meeting the trial’s endpoint. The biotech plans to advance RE104 into a Phase II trial for the treatment of PPD in 2026, complementing the plans for a separate GAD study.
Reunion designed RE104 to deliver a short psychoactive experience, unlike longer experiences experienced with psychedelics such as psilocybin or LSD.
There has been a 500% rise in partnership deals involving psychedelic drugs between 2019 and 2023, as per analysis by GlobalData.
GlobalData is the parent company of Pharmaceutical Technology.
However, the future of the psychedelic-based treatment landscape took a hit last year, after Lykos’ MDMA therapy was rejected by the US Food and Drug Administration (FDA) in August 2024. Companies in the sector have since been looking at redesigning their trials to boost approval chances.
