Lykos Therapeutics completes first close of Series B financing to fund pipeline progress, corporate operations, and next-stage development after FDA setback

Lykos Therapeutics has completed the first close of a Series B financing round aimed at supporting continued operations, advancing its clinical pipeline, and extending development plans after the FDA declined approval of its MDMA-assisted therapy application in 2024. The financing signals investor willingness to keep backing the company despite regulatory setbacks. Lykos has been central to efforts to commercialize MDMA-assisted therapy for PTSD, and new capital is likely intended to stabilize the business while it reassesses strategy, regulatory pathways, and future trial design. The raise matters beyond one company because Lykos sits at the center of the psychedelic medicine sector's push toward mainstream drug approval. Fresh funding suggests that parts of the market still see long-term value in regulated psychedelic therapies even as timelines, evidence standards, and commercialization assumptions become more demanding.