Transcend Therapeutics Secures $40M Series A to Advance Next-Gen Psychedelic Treatment for PTSD

2025-12-31 08:47:24

A biotech startup focused on neuropsychiatric diseases has wrapped up its Series A funding round, bringing in $40 million to accelerate clinical development. The round, led by Alpha Wave Global and Integrated Investment Partners, values Transcend Therapeutics’ mission to deliver more accessible psychoactive medicines to the millions suffering from PTSD and related disorders.

The Lead Compound: Methylone

What sets Transcend Therapeutics apart is its lead candidate, methylone (TSND-201), which differs from other psychedelic-based therapies in a crucial way—it produces shorter-acting, milder psychological effects. This means patients could potentially require less clinician supervision during treatment sessions compared to traditional psychedelics. The compound may also work alongside existing psychiatric medications like SSRIs, making integration into current healthcare systems more feasible.

Real-world clinical case data already shows methylone delivering robust responses in PTSD patients, providing early validation for the approach. The goal is to transform how neuropsychiatric conditions are treated—moving toward rapid-acting, non-hallucinogenic solutions.

Why Now? The Mental Health Market Opportunity

Mental health disorders remain one of the leading causes of disability globally, yet current treatments often fall short. They take weeks to show effects, frequently carry chronic side effects, and simply don’t work for many patients. With over 50 million Americans dealing with neuropsychiatric diseases, the addressable market for next-generation treatments is massive.

Transcend Therapeutics positions its compound as more accessible than competing psychedelics, targeting the tens of millions already on psychotropic medications who could potentially benefit from this adjunctive therapy.

The Team Behind the Science

Transcend Therapeutics assembled an experienced leadership group with a proven track record in drug development:

Kevin Ryan (Co-Founder, Chairman) previously founded and led AlleyCorp, incubating companies like MongoDB and Business Insider. He also served as CEO of DoubleClick before it sold to Google.
Blake Mandell (Co-Founder, CEO) comes from venture capital, leading frontier tech investments at AlleyCorp before taking the helm at Transcend Therapeutics.
Ben Kelmendi, MD (Co-Founder, Chief Scientific Advisor) runs Yale’s Program for Psychedelic Science and was the first researcher to secure federal funding for psychedelic clinical trials in over 50 years.
Martin Stogniew, PhD (Chief Development Officer) holds 40 patents and has guided drug development across six biotech startups, with nine NDAs and five exits totaling $3.5+ billion in value.
Amanda Jones, PharmD (Senior VP, Clinical Development) previously led clinical programs at Axsome Therapeutics, shepherding compounds through IND and NDA stages, including Auvelity—the first and only oral NMDA antagonist approved for major depressive disorder.

Collectively, this group has contributed to 13 FDA-approved drugs representing $7 billion in M&A and public market value.

The Funding Story

Transcend Therapeutics has now raised nearly $42 million to date. The Series A, led by Alpha Wave Global and Integrated Investment Partners, also attracted support from Global Founders Capital and Emerald Investment Managers. These backers recognize the potential to reshape mental health treatment through innovation.

Rick Gerson, Co-Founder and CIO of Alpha Wave Global, commented that Transcend Therapeutics’ combination of strong team and well-characterized lead compound positions it to make a meaningful impact across millions of patients. The funding will enable faster advancement into clinical trials and accelerate methylone’s path to market.

What’s Next

With this capital infusion, Transcend Therapeutics plans to launch multiple clinical trials, including a Phase II study, to validate methylone’s safety and efficacy. As a Public Benefit Corporation, the company has pledged 10% of founding shares to nonprofits supporting scientific research and patient access—signaling commitment beyond profit.

The mental health crisis continues to demand innovative solutions. Transcend Therapeutics’ approach—combining experienced leadership, a differentiated compound, and substantial funding—suggests the field may be on the cusp of meaningful change.

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