Lightstone Ventures, Temasek’s ClavystBio support Allay Therapeutics’ $57.5 M Series D funding
Clinical-stage biotechnology startup Allay Therapeutics said last Thursday that it had closed a $57.5 million Series D funding round with top international investors.
According to a statement from the company, the Series D financing was co-led by Lightstone Ventures and Temasek-backed ClavystBio, with involvement from current investors NEA, Arboretum Ventures, Vertex Growth, Vertex Ventures Healthcare, and Brandon Capital.
IPD Capital, EDBI, and SGInnovate joined the round as new investors, and the company also received additional venture debt financing from HSBC Innovation Banking.
Additionally, Allay announced that ClavystBio’s Anselm Tan will join Allay’s board, which is connected to the financing, and that Joe Zakrzewski, a seasoned pharmaceutical executive, has been appointed Chairman of the Board of Directors.
Maruishi Pharmaceutical, a Japanese partner of Allay Therapeutics, has extended the scope of its license agreement beyond Japan to include Taiwan and South Korea.
Maruishi has also increased its investment in Allay as part of the Series D financing as part of the license amendment.
A Phase I/II multi-center open-label safety study of ATX101 is presently being carried out in Japan by Maruishi.
In addition to advancing Allay’s ultra-sustained platform of products for other unmet needs following painful surgeries, the financing proceeds will support Allay Therapeutics’s Phase 2b registration trial evaluating ATX101 for the treatment of post-surgical pain following total knee replacement (TKA) surgery, the statement said.
A new experimental analgesic called ATX101 is intended to prolong post-operative pain relief, lowering the need for opioids and enhancing patient recuperation.
“With our recent breakthrough therapy designation (BTD) by FDA and constructive Type B meeting discussions held in March 2025, we have a clear roadmap to complete the ATX101 development program in TKA and are looking at additional indications and unmet needs in orthopedics, plastic surgery, anesthesiology and other soft tissue surgeries,” stated Adam Gridley, President and Chief Executive Officer of Allay Therapeutics.
“We believe the ATX platform of products driven by our teams in Singapore and the U.S. can help improve patient outcomes, reduce opioid use and improve function more rapidly than currently available therapies,” he added.
At several locations across the United States, Allay is conducting a Phase 2b registration trial with 200 participants undergoing total knee arthroplasty (also known as TKA surgery).
The three-arm, randomized, controlled trial, which was started in February 2025, compares the effects of ATX101 1,500 mg versus a placebo and an active comparator of bupivacaine.
Compared to standard-of-care bupivacaine, ATX101 produced clinically significant, long-lasting treatment effects based on pain intensity for up to four weeks, resulting in a decrease in the need for opioids and a significant improvement in functional activities for up to 60 days after surgery, according to a previous dose-ranging Phase 2b trial.
