
Israeli startup seeks to redefine PTSD treatment with novel brain mechanism
Kailo Pharma’s approach aims to weaken traumatic memories without affecting normal recall.
Medical startup Kailo Pharma has raised NIS 6.5 million (approximately $2.1 million) to advance a University of Haifa discovery toward what it says could become the first drug designed to directly treat post-traumatic stress disorder (PTSD), following research in which scientists were able to eliminate the effects of traumatic memories in mice.
The company is owned by the University of Haifa’s technology transfer company, Carmel, and the venture capital fund NGT Healthcare II. The funding round was led by NGT with support from the Israel Innovation Authority.
Current PTSD treatments focus primarily on managing symptoms through psychiatric medications and face-to-face psychological therapies. Researchers at the University of Haifa, Dr. Iris Reuveni and Prof. Edi Barkai, have identified a previously unknown brain mechanism responsible for the pathological “amplification” of fear memories. In collaboration with Prof. Chaim Gillon of the Hebrew University, the team is developing a peptide designed to neutralize this mechanism.
Peptides are short chains of amino acids, the building blocks of proteins. The proposed treatment would be administered as a nasal spray, allowing it to reach the central nervous system directly.
In the coming years, the company plans to conduct additional trials in mice to refine dosing and strengthen statistical validation. Human clinical trials are expected to begin within approximately three years, with commercialization potentially following within five to ten years, subject to successful results. The global PTSD population is estimated at around 300 million people.
Reuveni explained that, unlike normal memory, traumatic memory acts as an amplifier of neural activity, effectively doubling the strength of the memory signal. This process alters all synaptic connections of the affected neurons, rather than just some, as occurs in normal memory formation. This amplification is believed to underlie symptoms such as flashbacks and nightmares and helps explain the persistence of traumatic memories over time.
Crucially, the amplification mechanism appears to operate only in neurons associated with traumatic memories, and not in those responsible for normal memories. As a result, targeting this mechanism could reduce the pathological intensity of trauma without erasing the memory itself, potentially allowing patients to process the experience more effectively.
According to Reuveni, other approaches that attempt to erase memories carry risks, including unintended damage to non-traumatic memories or the creation of fragmented recall. In addition, such approaches typically require intervention shortly after the traumatic event, whereas targeting the amplification mechanism could remain effective long after the trauma has occurred.
Kailo Pharma CEO Dr. Osnat On said that “developing a specific peptide that can be administered as a spray is a significant advantage over competitors who offer treatment for symptoms only.”
Tamir Frank, CEO of Carmel, said the goal is “to translate the breakthrough into a solution that will change the lives of millions of sufferers around the world.” University of Haifa President Prof. Gur Alroey added that the company reflects the institution’s focus on turning academic research into practical applications.














