Altay Therapeutics Secures $37M in Series A for FSHD Drug Development
Altay Therapeutics has raised $37M in a Series A funding round co-led by Sound Bioventures and HealthCap to advance its oral drug for FSHD.
Altay Therapeutics, a biotechnology company based in San Carlos, California, focuses on developing disease-modifying therapies targeting transcription factors to treat serious, underserved diseases. On October 14, 2026, the company announced the successful closure of a $37 million Series A funding round, co-led by Sound Bioventures and HealthCap. This funding will significantly support the advancement of Altay's investigational oral DUX4 inhibitor, DX5057, designed to preserve muscle in patients suffering from facioscapulohumeral muscular dystrophy (FSHD).
The funds from this round are earmarked for initiating Phase 1 and Phase 2 proof-of-concept trials, with a Phase 1 safety study expected to commence in the first quarter of 2027. This marks a critical step towards validating the effectiveness and safety of DX5057, which aims to tackle the underlying issues caused by the DUX4 transcription factor, implicated in the progression of FSHD.
Alongside the lead investors, several other institutions participated in the funding round, including Fountain Healthcare Partners, Biogen New Ventures, Pappas Capital, and Global BioAccess Fund. This diverse syndicate not only brings financial backing but also a wealth of expertise and governance as they join the board to guide Altay's strategic direction.
Altay has a notable history of support, previously securing nearly $7 million in seed financing from SOLVE FSHD, which has been instrumental in establishing the groundwork for its current clinical ambitions. The new funding round complements this earlier investment while focusing on the specific clinical development of DX5057.
The competitive landscape for FSHD treatments is evolving, with Altay's oral approach providing a potentially more convenient alternative to existing therapies. Other players, such as Novartis, are also making strides in this area, with their recent advancements in the biomarker cohort for similar conditions highlighting the need for effective treatments and robust clinical evidence.
As Altay navigates through the complexities of drug development, its participation in collaborative efforts like the FSHD Industry Collaborative further emphasizes its dedication to improving treatment methodologies through shared insights and resources. The upcoming clinical trials are poised to test not only the drug's safety but also its ability to deliver meaningful benefits to patients, setting the stage for potential breakthroughs in the management of FSHD.
With a strong leadership team, including CEO James Breitmeyer and founder Ali Ozes, Altay is strategically positioned to leverage its innovative approaches in transcription factor inhibition, which could reshape the therapeutic landscape for FSHD and other diseases. The company is committed to transforming scientific discovery into tangible patient outcomes, aiming to address significant gaps in current treatment options.
Press
- Altay Therapeutics Closes $37M Series A FinancingFinSMEs · 10/14/2026
- Altay Therapeutics Closes $37 Million Series A Financing to Advance First Oral DUX4 Inhibitor for FSHD into the ClinicYahoo Finance · 10/14/2026
- SOLVE FSHD Portfolio Company Altay Therapeutics Closes $37 Million Series A Financing to Advance DX5057 for FSHDBusiness Wire · 10/14/2026
About the Company
Altay develops disease-modifying therapies targeting transcription…
Altay develops small molecule drugs to treat chronic liver diseases like liver fibrosis and liver cancer. Our co-founder Dr. Osman Ozes, led the first drug development program for Esbriet (Pirfenidone), resulting in the first FDA approved therapy for lung fibrosis. Esbriet is now a $1 billion/year drug and has already made over $6 billion in revenue. With a team that has over 70+ years of small molecule drug development experience, we intend to do the same with chronic liver diseases, which affects over 20 million Americans and represents a market size of over $30 billion. We know we are well positioned for success because we have shown excellent pre-clinical mouse data in several liver fibrosis models using our novel small molecule. We demonstrate a reduction in fibrosis with our drug, but more significantly, we show a reversal in fibrotic tissue back to normal tissue. With our current developmental strategy, we hope to have a clinic-ready compound by the end of 2021 and be in phase I clinical trials by mid of 2022.