EpilepsyGTx has raised EUR 31.75 million in a Series A funding round to push its lead programme, EPY201, into Phase 1/2a clinical trials for focal refractory epilepsy, a severe form of the disease that is resistant to medication. The round was backed by XGEN Venture and the British Business Bank, alongside a global biopharmaceutical company.
The financing, reported as $33 million and equivalent to around £24.78 million, puts fresh capital behind a thesis that is gathering momentum across European biotech: targeted gene therapies are moving from platform promise to clinical execution in large, underserved chronic conditions.
A single-dose bet on refractory epilepsy
EpilepsyGTx is developing EPY201 as a locally delivered adeno-associated virus (AAV) gene therapy designed to reduce neuronal hyperexcitability in patients with refractory epilepsy. The company’s stated objective is ambitious: deliver seizure freedom through a single intervention, avoiding resection or ablation procedures and reducing reliance on chronic medication.
That positioning matters in focal refractory epilepsy (FRE), where patients can face unpredictable seizures despite multiple anti-seizure drugs. The burden is not only clinical but also economic, given the long-term costs of emergency care, hospitalisations and specialist follow-up.
Why this round reads as a market signal
This financing aligns with two broader funding patterns in UK and European life sciences.
- First, investors are increasingly prioritising programmes that can show a clear path into the clinic, rather than earlier-stage platform narratives. In EpilepsyGTx’s case, the proceeds are explicitly earmarked for Phase 1/2a development, shifting the company into a value inflection period where clinical readouts will set the tone for partnering and future financing.
- Second, the presence of both institutional capital and a strategic biopharma participant signals that refractory epilepsy is being reframed as an innovation-led market rather than a slow-moving neurology category. The global refractory epilepsy treatment market is projected to expand from $4.9 billion in 2025 to $9.47 billion by 2035, a 6.7% CAGR, reflecting a high-growth segment with persistent unmet need.
For investors, that matters because neurology has historically been perceived as high risk and long cycle. The deal suggests that well-defined patient populations and clear clinical endpoints are drawing capital back toward the space.
UK ecosystem credibility and de-risking
EpilepsyGTx is a University College London (UCL) spinout supported by UCL Business (UCLB) since 2021, and it previously raised $10 million in seed funding. That lineage provides a familiar UK translational pathway: academic IP, early institutional support, and a progression to larger rounds once a clinical plan is in place.
The British Business Bank’s participation also underlines continued public-sector commitment to scaling UK deep science, particularly where rounds combine private capital and strategic interest.
What to watch next
The immediate milestone is the Phase 1/2a trial for EPY201. For a single-dose AAV therapy, the market will look closely at early signals on safety, durability and functional efficacy, as well as manufacturing readiness and scalability.
The strategic question is whether EpilepsyGTx can convert clinical progress into a broader partnering narrative in neurology, where commercialisation often depends on specialist centres and long-term patient management. A global biopharma investor in the round suggests that path is already being considered.
With EUR 31.75 million secured, EpilepsyGTx now has the capital to move from scientific rationale to clinical evidence in a large, underserved epilepsy population, reinforcing a wider trend: capital is flowing to neurology programmes that pair transformative claims with near-term clinical execution.