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HARTFORDBUSINESS.COM | JUNE 15, 2026 9 STARTUPS, TECHNOLOGY & INNOVATION Phase 1b study in Alzheimer's patients found ALX-001 to be safe and well tolerated, with no serious adverse events. The study also suggested the drug was reaching its intended target in the brain. The Phase 2 trial is expected to begin in the fourth quarter and will primarily be conducted in Australia, where company executives said studies can often be launched more quickly and at lower cost than in the United States. The trial is expected to run approximately three years from first patient enrollment through final data collection. Researchers will evaluate whether patients show measurable improve- ments and look for additional evidence that the drug may be slowing progres- sion of the disease. Success, however, is far from guaranteed. Alzheimer's drug development remains one of the most challenging areas in biopharmaceutical research, with studies showing that many experimental therapies fail in mid- or late-stage trials. For example, a 2021 University of Nevada, Las Vegas anal- ysis of more than 1,000 Alzheimer's clinical trials found a 95% failure rate among drug candidates, including 36 late-stage failures. That same study found that just five drugs had received U.S. Food and Drug Administration approval to treat symptoms of Alzheimer's disease since 1995. Even if the upcoming trial succeeds, Allyx is unlikely to commercialize the drug on its own. Bloch said the company would likely seek a partnership with a major pharma- ceutical company, pursue an initial public offering or explore other strategic options to fund larger, later-stage trials. Bringing ALX-001 through final clinical testing and regulatory approval could require roughly $1 billion in additional capital, he said. "I always kind of joke about it," Bloch said. A startup "can be like lighting money on fire, because you know you're so far away from profits and you have to be very comfortable with the ambiguity and the risk." Despite that, he says the risks are outweighed by the potential rewards that have nothing to do with money. "Thirty-five percent of people over the age of 80 have some form of dementia, namely Alzheimer's," Bloch said. "We do it because we love the industry and the people around it, … and it's very satisfying to see a drug come to market or get approved and be able to help people." Got an eye on business expansion? At Ion Bank, we see your dreams, your realities, your day-to-day, your future, and every big decision along the way. We are always looking out for you! Cash Management • SBA Loans • Real Estate & Expansion • Equipment Financing Visit a branch or call us at 203.729.4442 today! Member FDIC Equal Housing Lender MEET THE FOUNDERS Dr. Stephen Bloch A serial entrepreneur, venture capitalist and former physician, Bloch spent 18 years as a general partner at Canaan Partners, investing in healthcare startups. Before that, he founded several companies, including Radiology Management Sciences, a radiology benefits management company, where he served as CEO. Timothy Siegert, Ph.D. A chemical biologist and entrepreneur, Siegert has led Allyx's business development and research efforts. Before joining Allyx, he helped launch biotechnology startups from Yale innovations through the Yale Blavatnik Fellowship for Entrepreneurship and worked as a scientist at Ra Pharmaceuticals. Dr. Stephen Strittmatter One of Yale's leading Alzheimer's researchers, Stritt- matter serves as director of the Yale Alzheimer's Disease Research Center. The research behind Allyx was developed in his laboratory over the past decade. He is also founder of ReNetX Bio, a biotech company focused on spinal cord injury therapies.