Alto Neuroscience’s share price doubled after announcing plans to accelerate the development of ALTO-207, a potential depression medication combining existing drugs. The company aims to start a mid-stage clinical trial next year and late-stage study by early 2027, following a successful FDA meeting.

To fund larger experiments, Alto disclosed a $50 million private placement financing, selling shares at $6 apiece. With cash reserves until 2028, analysts predict ALTO-207 could generate over $1 billion in annual sales if approved by 2030. Alto also has other drugs in human testing.

Alto’s shares surged to $12.19 from $6 on Monday, reaching levels not seen in almost a year. The last peak was before a study of ALTO-100 delivered negative results. The company is optimistic about the potential success of its various drug programs.

Read more at Yahoo Finance: Alto shares double on plans to speed depression drug’s development