Alto Neuroscience raises $50 million in private placement financing

Alto Neuroscience Inc. (NYSE: ANRO) announced it has entered into a securities purchase agreement for a private placement financing that will generate gross proceeds of approximately $50 million before deducting offering expenses.

The financing was led by Perceptive Advisors, with participation from new and existing institutional investors including Commodore Capital, Vestal Point Capital, Vivo Capital, and other biotech-focused investors, according to a company statement.

Alto plans to use the proceeds to accelerate development of ALTO-207, a fixed-dose combination of pramipexole and ondansetron for treatment resistant depression. The company expects to initiate a Phase 2b study of ALTO-207 by mid-2026 and a Phase 3 study by early 2027.

In the private placement, Alto is selling 3,832,263 shares of common stock at $5.914 per share and pre-funded warrants to purchase up to 4,622,251 shares at $5.9139 per warrant. The pre-funded warrants have an exercise price of $0.0001 per share and will be immediately exercisable. The transaction is expected to close on October 21, 2025, subject to customary closing conditions.

ALTO-207 combines pramipexole, a dopamine D3-preferring D3/D2 agonist approved for Parkinson's disease, with ondansetron, a 5-HT3 receptor antagonist. In a Phase 2a clinical trial with 32 patients, ALTO-207 met primary and secondary endpoints, demonstrating improvements on the Montgomery-Åsberg Depression Rating Scale compared to placebo.

The securities have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an effective registration statement or applicable exemption. Alto has agreed to file a registration statement with the Securities and Exchange Commission for the resale of the shares.

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