Stockholm-based digital therapeutics startup Alex Therapeutics raised €3.5 million ($3.8 million) in a financing round led by Hadean Ventures.

Others participating in the round include Scale Capital, Bonit Capital and previous investor Sweet Studio.

WHAT IT DOES

Alex offers a platform that aims to help pharma and life science partners create and launch digital therapeutics.

Earlier this year, the startup announced it had entered into a strategic commercial agreement with Pfizer to build a therapeutic for nicotine addiction, initially focused on the German market. The product, Eila, is currently undergoing clinical trials. 

Other products in Alex's pipeline include a therapeutic for anxiety and depression in patients with idiopathic pulmonary fibrosis (IPF), a tool using the principles of cognitive behavioral therapy for obesity, and a depression and anxiety therapeutic for patients with breast cancer. 

WHAT IT'S FOR

The company said it will use the funding for growth in Europe and the U.S., as well as for developing new digital therapeutics with its partners. 

"We've been following the digital therapeutics space for a long time and are now seeing major markets such as Germany and the U.S. open up for prescription and reimbursement of digital therapies," Dr. Ingrid Teigland Akay, managing partner at Hadean Ventures, said in a statement.

"Alex Therapeutics' impressive track record, dedication to developing treatments with and for patients, combined with their utilization of advanced technology, make them an attractive partner for companies seeking to launch digital therapeutics."

MARKET SNAPSHOT

Digital therapeutics startups raised $3.4 billion in funding globally last year, according to a report by CB Insights. 

Another company in the space is Pear Therapeutics, which offers prescription digital therapeutics for substance use disorder, opioid use disorder and chronic insomnia. The company hit the public markets in the U.S. late last year, and recently announced it was partnering to develop a digital therapeutic for sleep-wake disorders for the Japanese market.

Happify Health has also made moves to expand internationally. Last month it announced an agreement with healthcare services and pharmaceutical company Zuellig Pharma to commercialize two prescription digital therapeutics in Asia. 

Another player in the digital therapeutics space, Big Health, raised $75 million in Series C funding earlier this year.