HMNC Brain Health Raises $50 Million and Forms a Strategic Alliance with MEDICE

The Munich-based neuropsychiatry biotech company HMNC Brain Health has announced the first tranche of a Series B funding round totaling 50 million U.S. dollars. At the same time, the company is announcing a far-reaching strategic partnership with the German healthcare company MEDICE.

The funding is intended to accelerate the clinical development of two promising programs: Ketabon (KET-01), a novel ketamine-based therapy for treatment-resistant depression, and Nelivabon (BH-200), a biomarker-based precision therapy for certain forms of depressive disorders.

MEDICE Joins as an Investor and Commercialization Partner

The financing round is led by MEDICE – The Health Family. The family-owned company is one of the leading providers in the field of mental health and holds a particularly strong position in the European ADHD market.

In addition to the equity investment, both companies have entered into a strategic licensing agreement. This secures MEDICE the exclusive marketing rights for Ketabon in Europe. In return, HMNC will receive performance-based milestone payments as well as tiered royalty rates in the double-digit percentage range on future sales.

Existing investor The Maschmeyer Group is also participating in the financing round once again. Prominent individuals participating as investors include Josef Ackermann, Toni Kroos, Matthias Schweighöfer, and Wilhelm Beier, owner of the pharmaceutical company Dermapharm. To date, HMNC has raised 110 million euros in funding.

Ketabon Aims to Rethink Depression Treatment

At the center of this effort is Ketabon (KET-01), an orally administered ketamine formulation with extended-release properties. While ketamine-based therapies are already considered a promising approach for treatment-resistant depression, existing treatment methods are often associated with time-consuming clinic visits or burdensome side effects.

HMNC is now taking a different approach. The extended-release formulation is intended to enable outpatient or even at-home use. In Phase 2 studies to date, Ketabon has demonstrated rapid antidepressant effects while reducing dissociative side effects compared to existing ketamine therapies. The new funding will now be used to advance preparations for the pivotal Phase 3 trials.

Precision Psychiatry as a Second Pillar

In parallel, HMNC is developing Nelivabon (BH-200), a so-called first-in-class therapy. The active ingredient specifically blocks the vasopressin V1b receptor and is targeted at biologically defined patient groups. It is based on a proprietary genetic stratification approach designed to identify patients who could benefit particularly from the therapy.

According to the company, initial Phase 2b results from the OLIVE study were promising. In addition, HMNC is already exploring potential applications in other neuropsychiatric and neurodegenerative indications.

Mental health disorders remain one of the largest unmet healthcare markets

This funding comes at a time when mental health conditions continue to rise worldwide. At the same time, many existing therapies are considered inadequate or do not work sufficiently well for some patients. HMNC aims to move away from standardized treatments toward biologically grounded precision psychiatry.

This funding validates our scientific approach and our vision of building a next-generation neuropsychiatry company

Maximilian Doebler, Chief Business Officer of HMNC

Jessica Burgstaller, VP of Strategy & Corporate Development, also sees the partnership as an important step: “Combining scientific insights with new treatment options for patients reinforces our belief that biologically informed psychiatry can fundamentally transform the treatment of mental illness.”

Europe’s neuropsychiatry sector is gaining momentum

The involvement of an established healthcare company like MEDICE underscores the growing interest in innovative solutions for mental health conditions. While many biotech investments are currently focused on oncology or AI-driven drug discovery, this funding round shows that neuropsychiatry is also increasingly coming into the spotlight for institutional investors.

For HMNC, the Series B financing marks an important milestone on the path to bringing its programs to market. At the same time, the partnership with MEDICE could ensure that new therapeutic approaches reach patients in Europe more quickly in the future.