Pasithea Therapeutics Secures $60M In Strategic Funding To Accelerate PAS-004 Development

Pasithea Therapeutics Corp. (KTTA) stock surged 38% following news that the company has raised $60 million through a public offering, pricing shares at $0.75 each with major backing from healthcare investors like Vivo Capital, Janus Henderson Investors, and Coastlands Capital, among others. The capital injection, expected to finalize around December 1, 2025, positions the biotech firm to extend its cash runway well into the first half of 2028—a critical runway for drug developers racing to prove clinical efficacy.

What’s Driving The Rally: PAS-004 Pipeline And Clinical Momentum

The funding surge reflects investor confidence in Pasithea’s lead program, PAS-004, a next-generation macrocyclic oral MEK inhibitor designed to tackle RASopathies and MAPK pathway-driven tumors. Currently, the candidate is being evaluated across multiple clinical settings: a Phase 1 trial in advanced cancer patients and a Phase 1/1b study focusing on adult patients diagnosed with neurofibromatosis type 1 (NF1)-associated plexiform neurofibromas (NF1-PN).

Neurofibromatosis type 1 remains a significant unmet medical need. This neurocutaneous disorder occurs in approximately 1 in 3,000 births and frequently leads to nerve-associated tumor growth. While most tumors are benign, the complications can be severe, and treatment options today are severely limited. Currently, AstraZeneca’s Koselugo (selumetinib) stands as the sole FDA-approved MEK inhibitor for pediatric NF1-PN, creating a substantial opportunity for PAS-004 to capture market share as a next-generation alternative.

Expanding Beyond Oncology: ALS Opportunity

Beyond oncology, Pasithea’s pipeline recently broadened into neurodegenerative disease space. The ALS Association awarded the company $1 million to explore PAS-004’s potential in amyotrophic lateral sclerosis (ALS), signaling growing recognition of the compound’s therapeutic reach across multiple disease areas.

Market Performance

KTTA closed Friday’s session at $1.46, reflecting a 36.44% jump, though overnight trading showed a 10.27% pullback. Over the trailing 12-month period, the stock has oscillated between $0.28 and $3.85, underscoring the volatility typical of early-stage biotech plays where clinical data release and regulatory decisions move needle substantially.