Oyster raises $60 million to develop tau-targeting drugs for Alzheimer’s

Oyster Therapeutics said it raised $60 million in an extension of its Series A round to develop drugs aimed at tau, a protein that clusters in the brains of people with Alzheimer’s disease. BioPharma Dive reported the Series A-2 round was led by British venture fund 4BIO Capital, with eight other investors, including Lilly, also participating.

The London-based company is developing protein degraders intended to eliminate targets rather than block their activity. Oyster said its lead program targets disease-causing forms of tau while sparing healthy versions. The company says a linker in the drug splits it into two small molecules that can more easily enter cells and the brain. Oyster has not disclosed when the drug will enter clinical testing.

Oyster is also entering a research collaboration with Massachusetts General Hospital to study a form of tau it calls the “most neurotoxic.” The company is exploring potential applications of its technology in cancer and immunology, BioPharma Dive reported.