Iceland's Arctic Therapeutics raises $21.5M to push new pipeline to the clinic
What's the deal? Arctic Therapeutics, a clinical-stage biopharmaceutical company based in Reykjavik and Philadelphia, has closed an oversubscribed US$21.5 million late-stage venture round. The financing was increased following strong investor demand and was announced on October 21, 2026.
Who's backing it? The round was led by investment firm Pekron, Investcorp-backed Sanos GroupDealroom has a profile for this one. Try Dealroom →, Icelandic investment company KaldbakurDealroom has a profile for this one. Try Dealroom →, and Landvættir, a venture fund managed by AxUM Securities.
What's the endgame? The proceeds will primarily advance two pipeline assets — AT-002 and AT-003 — towards clinical development. That broadens the company beyond its lead programs, AT-001 for rare and common forms of dementia and AT-004 for inflammatory skin diseases, both of which have reached key Phase II milestones.
Arctic Therapeutics describes a genomics-driven approach, identifying disease biology through human genetics and translating it into treatments. AT-002 targets autoimmune uveitis with potential across lupus and psoriasis; AT-003 addresses CLEC16A, a gene linked to 16 autoimmune diseases including multiple sclerosis and type 1 diabetes.
Why now? The raise builds on an oversubscribed Series A of roughly US$31 million that funded the lead programs. "Our Series A enabled us to move our lead programs forward and achieve the clinical milestones we set out to reach," said co-founder and chief executive officer Ivar Hakonarson.
Hakonarson said the new money lets the company "unlock additional value within the broader pipeline" while advancing partnering and out-licensing for AT-001 and AT-004. The round also follows the company's participation in acquiring the lead asset of US-based Nobias TherapeuticsDealroom has a profile for this one. Try Dealroom → and the launch of Synaptiq Therapeutics.
The signal: At US$21.5 million, the round sits in the lower-middle of comparable financings, but it is substantial backing for an Icelandic clinical-stage biotech. The real test will be clinical evidence as AT-002 and AT-003 move towards their first trials.
Read more: news.cision.com
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