Allay Therapeutics, a biotech company that’s still testing its treatments, announced last Thursday that it raised $57.5 million from top investors in its latest round of funding.
The company said in a statement that the $57.5 million funding was led by Lightstone Ventures and ClavystBio, which Temasek backs. Other investors who had already supported the company—NEA, Arboretum Ventures, Vertex Growth, Vertex Ventures Healthcare, and Brandon Capital—also took part in this round.
New investors who joined this funding round included IPD Capital, EDBI, and SGInnovate. In addition, HSBC Innovation Banking gave the company extra funding in the form of a loan for startups.
Allay also shared that Joe Zakrzewski, a seasoned leader in the pharmaceutical industry, has been named Chairman of the Board of Directors. Anselm Tan from ClavystBio will also join the board as part of the new funding deal.
Allay Therapeutics’ partner in Japan, Maruishi Pharmaceutical has updated its license agreement to cover South Korea and Taiwan as well, along with Japan.
As part of the updated agreement, Maruishi also put more money into Allay by joining the Series D funding round.
Maruishi is currently running a Phase I/II study in Japan at multiple sites to test the safety of ATX101. This study is open-label, meaning both doctors and patients know what treatment is being given.
According to the statement, the money raised will help Allay Therapeutics pay for a Phase 2b trial of ATX101, a treatment for pain after total knee replacement surgery. It will also support the development of other long-lasting pain relief products for different types of surgeries where better pain management is needed.
ATX101 is a new pain relief treatment being tested. It’s designed to give long-lasting pain relief after surgery, helping patients recover better and rely less on opioids.
“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.
Allay is running a Phase 2b trial in the US with 200 people who are having total knee replacement surgery. The study is taking place at several locations across the country.
The trial started in February 2025. It’s a study where participants are randomly split into three groups: one group gets 1,500 mg of ATX101, another receives a placebo (a fake treatment), and the third gets a medicine called bupivacaine to compare results.
In an earlier Phase 2b study, different doses of ATX101 were tested and showed significant, lasting pain relief compared to the usual treatment with bupivacaine. People who took ATX101 had less pain for up to four weeks, used fewer opioids, and were able to do daily activities better for up to 60 days after surgery.
Because of the strong results from the earlier study, the FDA has given Allay’s ATX101 product Breakthrough Therapy designation. This means the treatment shows promise and may offer major benefits over existing options.
Results from the current trial are expected in late 2025 and Allay plans to start a larger Phase 3 trial in 2026.
“We are proud to support Allay as they advance best-in-class non-opioid solutions for patients suffering from pain and poor recovery outcomes after surgery,
“Allay exemplifies ClavystBio’s mission to accelerate life sciences technologies from Singapore to the world,” said Anselm Tan, Digital Health & MedTech Lead, ClavystBio.
“ATX101 is one of several offerings in a pipeline driven by Singapore’s research and development (R&D) excellence, a strong collaboration among international teams, and a global syndicate of investors,” he added.
“The company is enrolling its Phase 2b registration trial ATX101 in the US for TKA surgeries and is expecting early completion of this trial in the coming months,
“It is rewarding to see Allay, which Lightstone Singapore helped to incubate alongside our partners at the Foundry, continue to grow and prosper,” he added.
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