British Investment Firm Secures $250M for Dementia Therapeutics Development

SV Health Investors, a British investment firm, has successfully raised $250 million for its second Dementia Discovery Fund (DDF-2), aimed at developing first-in-class therapeutics for dementia. This significant funding boost comes at a critical time, as dementia has become the leading cause of death in the UK and global costs associated with the condition are projected to surpass $2.8 trillion by 2030.

Fund Details and Strategic Focus

The final push to reach the $250 million target came from British Patient Capital, a commercial subsidiary of the British Business Bank, which committed £25 million ($32.4 million) on March 20, 2025. DDF-2 builds upon the success of its predecessor, which closed in 2018 with £250 million raised from investors including pharmaceutical giants Biogen, Eli Lilly, GSK, Johnson & Johnson, and Pfizer.

Christian Jung, Ph.D., managing partner at SV, emphasized the fund's strategy: "DDF-2 will continue the strategy of the first fund to invest in, create and scale the best U.K. and international biotech companies that develop breakthrough, high-impact treatments in this critical field."

Early Investments and Clinical Progress

Despite its recent establishment, DDF-2 has already made four investments:

1. Montara Therapeutics (US)
2. Sudo Biosciences (US)
3. Violet Therapeutics (US)
4. Trimtech Therapeutics (UK)

Of these, Sudo Biosciences has made notable progress with two TYK2 inhibitors in Phase 1 trials. The company recently dosed its first healthy volunteer in a Phase 1 dose-escalation trial of SUDO-550, a brain-penetrating neuroinflammation prospect. Additionally, SUDO-286, a topical asset for psoriasis, is advancing through two separate Phase 1 trials.

Building on Past Successes

The original Dementia Discovery Fund has played a crucial role in advancing dementia research since its inception in 2015. To date, DDF funding has facilitated 11 assets entering clinical trials. One of the fund's notable success stories is Alchemab Therapeutics, which has gone on to forge collaborations with industry leaders AstraZeneca and Eli Lilly.

As the pharmaceutical industry continues to grapple with the growing global impact of dementia, initiatives like the Dementia Discovery Fund represent critical efforts to accelerate the development of much-needed therapeutics in this challenging field.