Caraway Therapeutics Acquisition, Valuation, Funding & Investors

Caraway Therapeutics was acquired by Merck for $610M in November 2023.

Caraway Therapeutics acquisition price

$610M

Acquired by Merck · Nov 2023

Cumulative funding Caraway Therapeutics raised

$23M

across 1 funding round

Key investors in Caraway Therapeutics

  • Alexandria Venture Investments
  • SV Health Investors
  • Mayo Clinic
  • AbbVie
  • Amgen Ventures
  • MRL Ventures Fund
  • Dementia Discovery Fund

Caraway Therapeutics Overview

About Caraway Therapeutics

Caraway Therapeutics is a Cambridge, Massachusetts-based biopharmaceutical company focused on neurodegenerative diseases via mitophagy and autophagy modulation. The firm discovers small molecules to clear damaged organelles and protein aggregates implicated in Parkinson's, ALS, and rare disorders. Caraway Therapeutics raised a series A round in 2022 to advance its lead programs targeting lysosomal function.


Founded

2018

HQ

United StatesUnited States

Status

Acquired

Customer focus

B2B

Revenue model

Product sales

Valuation

$610M (acquired Nov 2023)

Caraway Therapeutics Acquisition

Caraway Therapeutics was acquired by Merck for $610M on 21 November 2023.

Before the acquisition Caraway Therapeutics had raised $23M across 1 funding round.

Caraway Therapeutics, a Cambridge, Massachusetts-based preclinical biopharmaceutical company, develops small-molecule therapeutics targeting genetically defined neurodegenerative and rare diseases by modulating lysosomal function and activating autophagy, the cellular recycling process to clear toxic materials. Originally incubated as Rheostat Therapeutics by SV Health Investors and the Dementia Discovery Fund, it rebranded to Caraway in 2019 after raising $23 million in Series A funding co-led by Merck's MRL Ventures Fund, AbbVie Ventures, Amgen Ventures, and Eisai Innovation. The company focuses on novel mechanisms for progressive neurodegenerative diseases like Parkinson's, aiming to create disease-modifying therapies. Merck (NYSE: MRK, known as MSD outside the US and Canada), a global pharmaceutical giant, entered a definitive agreement on November 21, 2023, to acquire Caraway through a subsidiary for up to $610 million, comprising an undisclosed upfront payment expensed in Merck's Q4 2023 non-GAAP results and contingent milestone payments tied to pipeline candidate development. Merck, an investor since 2018, seeks to bolster its neuroscience pipeline amid aggressive 2023 dealmaking, including the $11 billion Prometheus Biosciences acquisition for bowel disease and $4-5.5 billion Daiichi Sankyo antibody-drug conjugate deal, as it plans post-Keytruda growth. Caraway's board approved the transaction, pending regulatory approvals. The strategic rationale centers on Caraway's multidisciplinary progress in lysosomal modulation, complementing Merck's research expertise to advance preclinical programs for devastating neurodegenerative conditions, enhancing Merck's position in a competitive field lacking effective disease-modifying treatments.

Caraway Therapeutics acquisition details
AcquirerDateTypePrice
21 Nov 2023Strategic M&A$610M

Caraway Therapeutics Funding History

Caraway Therapeutics has raised a total of $23M across 1 funding round.

Caraway Therapeutics funding rounds

Caraway Therapeutics funding rounds
DateStageInvestorsRaisedDeal Summary
Nov 2018Series AAbbVie (lead); MRL Ventures Fund (lead); Amgen Ventures; SV Health Investors; Alexandria Venture Investments; Mayo Clinic; Dementia Discovery Fund$23MCaraway Therapeutics, originally incubated as Rheostat Therapeutics by SV Health Investors and Dementia Discovery Fund, emerged in 2018 with a $23 million Series A round co-led by AbbVie Ventures and MRL Ventures Fund (Merck), with participation from Amgen Ventures, Alexandria Venture Investments, Mayo Clinic, and the SV funds. The Cambridge, MA-based biotech focuses on activating autophagy and lysosomal function via small-molecule therapeutics targeting genetically validated pathways for neurodegenerative diseases like Parkinson’s (TRPML1, TMEM175) and rare disorders, aiming to clear toxic cellular materials. In June 2021, Caraway entered an exclusive collaboration with AbbVie on TMEM175 modulators for Parkinson’s and ALS. The 2018 funding supported early drug discovery programs, but no valuation beyond an unconfirmed estimate equaling the round size, revenue, ARR, or EBITDA figures were disclosed near the round date. The company maintained a preclinical pipeline with multiple candidates, none entering clinic by late 2023. Additional backers included Eisai Innovation. In November 2023, Merck agreed to acquire Caraway for up to $610 million including upfront and milestones, acquiring all shares after its initial investment via MRL Ventures. This followed Merck's other large deals like the $4 billion Daiichi Sankyo pact and solidified its neurodegenerative pipeline. The acquisition highlighted Caraway’s progress in lysosomal modulation, with Merck committing to advance programs for Parkinson’s and beyond.

Who has invested in Caraway Therapeutics?

7 investors have backed Caraway Therapeutics across its funding rounds, including Alexandria Venture Investments, SV Health Investors, Mayo Clinic, AbbVie, Amgen Ventures and MRL Ventures Fund.

Lead investors include AbbVie and MRL Ventures Fund.


Caraway Therapeutics Investors

Investors in Caraway Therapeutics by funding rounds participated
InvestorHQRoundsRoleFirst check
Amgen VenturesUnited StatesSan Francisco, CA1ParticipantNov 2018
SV Health InvestorsUnited StatesBoston, MA1ParticipantNov 2018
Alexandria Venture InvestmentsUnited StatesLos Angeles, CA1ParticipantNov 2018
AbbVieUnited StatesChicago, IL1LeadNov 2018
MRL Ventures FundUnited StatesUnited States1LeadNov 2018

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Caraway Therapeutics Competitors

Caraway Therapeutics competitors include listed companies like Scribe Therapeutics, Cormedix, Avalon Pharma and TTY Biopharm, and private ones like Yidao Biotechnology and Tizona Therapeutics.

Public and private companies comparable to Caraway Therapeutics
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Scribe TherapeuticsUnited StatesUnited StatesPublicly listed$51M($21M)$608M-
CormedixUnited StatesUnited StatesPublicly listed$312M$164M$607M1.5x
Avalon PharmaSaudi ArabiaSaudi ArabiaPublicly listed$123M$34M$607M4.6x
TTY BiopharmTaiwanTaiwanPublicly listed$203M$72M$613M2.8x
Yidao BiotechnologyChinaChinaPrivate--$618M-
Tizona TherapeuticsUnited StatesSan Francisco, CAPrivate--$601M-

Caraway Therapeutics Public Comps

Caraway Therapeutics is no longer listed, but its public comps include Scribe Therapeutics, Cormedix, Avalon Pharma, TTY Biopharm, CytomX Therapeutics, Alkaloid, Bright Minds Biosciences, Allogene Therapeutics, Crescent Biopharma and Valneva.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Scribe Therapeutics$51M($21M)14.2x-(34.0x)-
Cormedix$312M$164M1.6x1.5x3.0x-
Avalon Pharma$123M$34M5.1x4.6x18.2x18.3x
TTY Biopharm$203M$72M2.9x2.8x8.3x-
CytomX Therapeutics$76M($21M)3.8x7.3x(13.8x)(3.7x)
Alkaloid$391M$62M1.7x-10.7x-
Bright Minds Biosciences-($10M)--(39.2x)(10.0x)
Allogene Therapeutics-($197M)-122.7x(1.7x)(1.7x)

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Common questions about Caraway Therapeutics

When was Caraway Therapeutics founded?Caraway Therapeutics was founded in 2018.
Where is Caraway Therapeutics headquartered?Caraway Therapeutics is headquartered in United States.
Is Caraway Therapeutics publicly listed?No, Caraway Therapeutics was acquired by Merck in November 2023.
Who acquired Caraway Therapeutics?Caraway Therapeutics was acquired by Merck in November 2023.
How much was Caraway Therapeutics acquired for?Caraway Therapeutics was acquired for $610M in November 2023.
How much funding has Caraway Therapeutics raised?Caraway Therapeutics has raised $23M across 1 funding round.
What was Caraway Therapeutics' last funding round?Caraway Therapeutics' last funding round was a $23M Series A in November 2018, led by AbbVie and MRL Ventures Fund.
Who are Caraway Therapeutics' investors?Caraway Therapeutics' investors include Amgen Ventures, SV Health Investors, Alexandria Venture Investments, AbbVie, MRL Ventures Fund, Mayo Clinic and Dementia Discovery Fund.
Which companies are comparable to Caraway Therapeutics?Companies comparable to Caraway Therapeutics include Scribe Therapeutics, Cormedix, Avalon Pharma, TTY Biopharm, Yidao Biotechnology and Tizona Therapeutics.

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