Alphyn Biologics Raises $25M Series B to Advance Breakthrough Dermatology Therapies
Alphyn Biologics, a clinical-stage dermatology company focused on developing breakthrough therapeutics for severe and prevalent skin diseases, has successfully closed a $25 million Series B financing round that was oversubscribed and will fuel its next stage of clinical development. The financing is set to advance the company’s lead drug candidate, Zabalafin Hydrogel, through global Phase 2b clinical trials for atopic dermatitis, launch a new Phase 2 program targeting molluscum contagiosum virus (MCV), and bolster the company’s supply of critical raw materials needed for expanded drug manufacturing and testing.
The Series B round was led by QCA Investment Group, a Cincinnati-based investment firm with a history of backing innovative life sciences companies. Alongside QCA Investment Group, existing supporters such as Angel Physicians Fund and Serial Stage Venture Partners participated, joining several new investors attracted to Alphyn’s differentiated therapeutic platform and clinical progress.
Founded in 2020 with dual headquarters in Annapolis, Maryland, and Cincinnati, Ohio, Alphyn Biologics develops first-in-class Multi-Target Therapeutics® that simultaneously address multiple disease drivers. The company’s lead candidate, Zabalafin Hydrogel, is being developed as a topical treatment with the potential to directly target the immunological, bacterial, inflammatory, and symptomatic components of atopic dermatitis, a chronic skin condition that afflicts millions of patients worldwide. Extending its clinical plan, Zabalafin is also being evaluated as a comprehensive therapy for molluscum contagiosum virus, a highly contagious skin infection most common in children that often presents with itchy lesions, dermatitis, and secondary bacterial infections.
The infusion of Series B capital will support the global Phase 2b trial of Zabalafin Hydrogel, which represents a key step toward pivotal Phase 3 testing required for regulatory approval. By backing both the AD and MCV programs, investors are signaling confidence in Alphyn’s proprietary Multi-Target Therapeutic approach and its potential to deliver meaningful clinical benefits across multiple dermatological indications. The company’s strategy contrasts with many current treatments that focus on single disease mechanisms, leaving other interconnected pathologies unaddressed.
Alphyn’s leadership team, headed by CEO Neal Koller, brings decades of experience in drug development and commercialization. Koller has guided the company through early funding rounds, regulatory milestones including FDA clearances, and the build-out of its global clinical infrastructure. In remarks alongside the financing announcement, Koller underscored the importance of the Series B round in accelerating Alphyn’s broader pipeline while positioning the company to enter critical late-stage development.
Earlier financing milestones helped set the stage for this expansion. Alphyn closed a $3.3 million Series A round led by Queen City Angels with support from Angel Physicians Fund and Serial Stage Venture Partners, which helped advance initial clinical programs and validate the company’s innovative Multi-Target Therapeutic platform. Since inception, Alphyn has steadily raised capital to support its growing portfolio, building a runway into mid-stage clinical programs and sustaining expansion of its R&D capabilities.
The dermatology therapeutic landscape has attracted increasing interest from biotech investors in recent years as unmet needs persist in chronic inflammatory and infectious skin diseases. Atopic dermatitis, in particular, represents a multi-billion-dollar market opportunity due to its high prevalence, significant impact on quality of life, and limited treatment options that address underlying disease complexity. The molluscum contagiosum virus, while often self-resolving, lacks approved direct antiviral therapies, underscoring the potential for first-in-class treatments like Zabalafin.
With the latest capital, Alphyn Biologics is also positioned to expand its operational footprint and enhance its drug development infrastructure, including increased investment in manufacturing capacity for Zabalafin raw materials. This production scale-up aims to support larger clinical trials and provides flexibility as the company prepares for broader regulatory engagement and potential market introduction pathways.
Investor enthusiasm for Alphyn’s Series B round reflects confidence not only in the science underpinning its Multi-Target Therapeutic platform but also in the company’s leadership and clinical trajectory. As Alphyn moves toward pivotal trials and deeper validation of its candidate therapies, the company’s work represents an important intersection of novel dermatology innovation and targeted capital support.
