Coya Therapeutics Secures $11.1M Strategic Investment to Advance ALS Drug Manufacturing

HOUSTON, TX – January 30, 2026 – Coya Therapeutics, a clinical-stage biotechnology company developing novel treatments for neurodegenerative diseases, today announced it has secured $11.1 million in a private placement. The investment is led by a significant $10 million from global pharmaceutical company Dr. Reddy’s Laboratories, with an additional $1.1 million from Greenlight Capital, Coya's largest existing institutional stockholder.

The Houston-based firm (Nasdaq: COYA) will issue 2,522,727 shares of common stock at a price of $4.40 per share. The proceeds are earmarked to accelerate the technology transfer and scale-up of manufacturing for COYA 302, its lead investigational therapy for Amyotrophic Lateral Sclerosis (ALS). This strategic funding injection is designed to move the promising drug candidate closer to commercial readiness, a critical step for any clinical-stage company.

A Strategic Vote of Confidence

The composition of the investors is as significant as the amount raised. Dr. Reddy’s Laboratories is not a new partner but an existing collaborator, and this substantial investment deepens the strategic alliance between the two companies. In August 2025, Dr. Reddy's provided a $4.2 million milestone payment to Coya after the U.S. Food and Drug Administration (FDA) accepted the Investigational New Drug (IND) application for COYA 302 in ALS. This follow-on investment signals strong and growing confidence in Coya’s scientific platform, which focuses on enhancing the function of regulatory T cells (Tregs) to combat systemic inflammation.

Dr. Reddy’s has a stated strategic focus on expanding its biologics capabilities, making its financial backing of Coya a clear alignment of long-term interests. For Coya, this partnership provides not only capital but also validation from an established global pharmaceutical player with extensive manufacturing and commercialization expertise.

Meanwhile, the participation of Greenlight Capital reinforces support from its key institutional investors. Greenlight had previously highlighted Coya in its Q3 2025 investor letter, noting the initiation of clinical trials for COYA 302. Their continued investment underscores a belief in the company's long-term value proposition. Notably, the transaction was conducted directly between the company and the investors without the engagement of a placement agent or investment banker, maximizing the net proceeds available to Coya for its strategic objectives.

Accelerating a Novel Approach to Neurodegeneration

The funding is aimed squarely at preparing COYA 302 for its future. The investigational therapy is a proprietary combination of low-dose interleukin-2 (LD IL-2) and CTLA-4 Ig, administered subcutaneously. It is designed to work through a dual immunomodulatory mechanism: enhancing the anti-inflammatory function of Tregs while simultaneously suppressing inflammation produced by other immune cells like monocytes and macrophages. This approach targets the neuroinflammation that is a key driver of disease progression in devastating conditions like ALS.

Coya is currently enrolling patients in the ALSTARS Trial, a multi-center, double-blind, placebo-controlled Phase 2 study evaluating the efficacy and safety of COYA 302 in ALS patients. The company has already begun dosing patients and aims to complete enrollment during 2026, with topline data anticipated in early 2027.

The company's platform shows promise beyond ALS. In early January 2026, the FDA also accepted an IND application for COYA 302 for the treatment of Frontotemporal Dementia (FTD), another neurodegenerative disease with no cure. Coya plans to initiate a Phase 2a study for FTD in mid-2026, demonstrating the potential breadth of its Treg-enhancing platform. The new capital will be instrumental in building the manufacturing infrastructure needed to support these parallel clinical programs and prepare for a potential commercial launch.

Financial Fortitude and Market Outlook

Crucially, Coya Therapeutics has stated that this $11.1 million infusion is dedicated to accelerating commercial planning and will not be used to cover operational expenses, thereby preserving the company's existing financial runway. Management reiterated its guidance that current cash reserves, which stood at $28.1 million as of September 30, 2025, are sufficient to fund operations into the second half of 2027. This timeline extends beyond the expected data readout from the pivotal ALSTARS trial, placing the company in a strong financial position to reach its next major inflection point.

The private placement price of $4.40 per share represented only a slight discount to the trading price of $4.60 at the time of the announcement, suggesting a stable market reception. Wall Street analysts have largely maintained a positive outlook on the company's long-term prospects. H.C. Wainwright recently reiterated a "Buy" rating with an $18.00 price target, while Lake Street also holds a "Buy" rating and increased its target to $17.00. These bullish stances are fueled by Coya's steady clinical and regulatory progress.

However, a more cautious view notes the financial realities of a clinical-stage biotech, including ongoing losses and cash burn. Despite this, Coya's debt-free balance sheet and succession of positive milestones—including the dual IND acceptances and this strategic financing—provide a compelling counter-narrative. The funding from Dr. Reddy's and Greenlight provides a critical bridge, allowing Coya to de-risk its manufacturing pathway well ahead of potential regulatory submission, a move that could significantly accelerate its timeline to bringing a new therapy to patients in desperate need.