Swedish biotech Pila Pharma has completed a heavily oversubscribed share issue on Nasdaq First North Growth Market in Stockholm, raising nearly SEK 30 million to advance development of a next-generation, tablet-based obesity treatment that the company believes could become a scalable, global alternative to today’s injectable weight-loss drugs.
The Malmö-based company said the issue was oversubscribed by 293.5 per cent, underscoring strong investor appetite despite a challenging environment for life sciences funding.
The proceeds will support preclinical studies of its lead drug candidate, XEN-D0501, an oral compound targeting the TRPV1 receptor, a key regulator of pain, temperature, and metabolism.
The therapy seeks to offer a simpler, more accessible route to weight loss at a time when obesity and overweight affect more than five billion people worldwide. Unlike existing GLP-1 agonist therapies, which must be injected and are associated with side effects such as nausea and gastrointestinal discomfort, Pila’s candidate is designed to be taken orally and could be cheaper to produce and distribute.
Pila Pharma’s practical, scalable approach
Founded by former Novo Nordisk researcher Dr Dorte X. Gram, Pila Pharma traces its scientific origins to her work in metabolic disease research. During her time at Novo Nordisk, Gram identified that inhibition of the TRPV1 receptor, a protein best known for its role in sensing heat and pain, could influence metabolic regulation and body weight.
That discovery forms the foundation of Pila’s current development programme. XEN-D0501, a chemically simple TRPV1 inhibitor, aims to modulate metabolism without triggering the side effects that have hampered broader adoption of other obesity drugs.
“Treating such a massive population will only be possible with a highly scalable solution, such as tablets,” said chief executive Gustav H. Gram. “With this funding, we can now accelerate development and initiate new studies to generate meaningful data documenting both efficacy and safety.”
The company argues that oral treatments are essential to meeting the global demand for obesity therapy. While GLP-1 agonists have achieved blockbuster status, their reliance on cold-chain distribution, high cost, and delivery via injection limit accessibility in many markets.
Gram said Pila’s oral approach could represent “a more practical and accessible path to weight loss without the gastrointestinal issues that often lead patients to discontinue existing therapies.”
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Strong investor interest amid caution
Pila’s financing marks one of the more notable biotech fundraisings in the Nordic region in recent years, particularly given the subdued investor sentiment across the sector. The company attributed the strong interest partly to a “risk-minimised” structure, under which additional financing will only be triggered by positive share price performance following encouraging preclinical results.
“We are both proud and grateful for the overwhelming support from our shareholders,” Gram said. “It confirms confidence in our strategy and in the unique potential of our focus on obesity.”
The new funds will be used to advance XEN-D0501 through a series of preclinical obesity studies. In September, Pila announced a partnership with Danish research group Gubra to conduct these studies, with results expected in early 2026. Positive data could pave the way for clinical trials in people living with overweight or obesity, alongside parallel development in type 2 diabetes.
Path toward first-in-class treatment
If successful, Pila aims to position XEN-D0501 as a first-in-class treatment for obesity and related metabolic disorders based on TRPV1 inhibition. The company’s goal is to deliver an oral alternative that complements, rather than competes directly with, existing GLP-1 therapies, potentially expanding treatment options for millions of patients worldwide.
Results from ongoing studies are expected ahead of the exercise period for the company’s TO2 warrants in February 2026, a milestone that could provide further financing for the next stage of development.
“Obesity is one of the world’s largest unmet health challenges,” Gram said. “Our ambition is to create a practical, scalable solution that can reach the people who need it most.”
