Alto Neuroscience secures $50M in PIPE financing

Alto Neuroscience (NYSE:ANRO [https://seekingalpha.com/symbol/ANRO]) has announced that it has secured approximately $50 million in gross proceeds through a private investment in public equity (PIPE) financing [https://seekingalpha.com/pr/20271369-alto-neuroscience-announces-50-million-private-placement-financing].

The $50 million PIPE involves the sale of both common stock and pre-funded warrants. Alto will issue an aggregate of 3,832,263 shares of common stock at a price of $5.914 per share.

For certain investors, the company will issue pre-funded warrants (covering up to 4,622,251 shares) at a nearly identical price of $5.9139 per warrant.

These pre-funded warrants are immediately exercisable with a nominal exercise price of $0.0001 and do not expire.

The financing was priced at-the-market under NYSE rules and is expected to close on October 21, 2025.

The funding round was led by Perceptive Advisors, a major life sciences investment firm, and included participation from both new and existing institutional investors, notably Commodore Capital, Vestal Point Capital, Vivo Capital, and a large biotech-dedicated investor.

Alto intends to use the substantial proceeds primarily to accelerate the development of its lead candidate, ALTO-207. ALTO-207 is a fixed-dose combination therapy involving pramipexole (a dopamine D3-preferring D3/D2 agonist) and ondansetron. The company now expects to initiate a Phase 2b study of ALTO-207 in Treatment Resistant Depression (TRD) by mid-2026.

The funding also enables the company to initiate a Phase 3 study of ALTO-207 in TRD patients by early 2027. The remaining proceeds will be allocated toward working capital and general corporate purposes.

MORE ON ALTO NEUROSCIENCE

* Alto Neuroscience GAAP EPS of -$0.65 [https://seekingalpha.com/news/4484986-alto-neuroscience-gaap-eps-of-0_65]
* Seeking Alpha’s Quant Rating on Alto Neuroscience [https://seekingalpha.com/symbol/ANRO/ratings/quant-ratings]
* Historical earnings data for Alto Neuroscience [https://seekingalpha.com/symbol/ANRO/earnings]
* Financial information for Alto Neuroscience [https://seekingalpha.com/symbol/ANRO/income-statement]