Israeli Biotech Leader Daphne Zohar Advances Depression Drug Market After Major Exit

In April, Seaport, a biotech company developing treatments for depression, anxiety, and PTSD, went public on NASDAQ with a valuation of $1.1 billion. The company’s success follows the major exit of Karuna Therapeutics, co-founded by Daphne Zohar, which developed a novel schizophrenia drug and was acquired by Bristol-Myers Squibb for $14 billion. Zohar, an Israeli-born entrepreneur based in Boston, is also the founder of PureTech, a venture capital fund that initiates and manages biotech companies.

Zohar’s entrepreneurial journey began in Israel and the US, influenced by her father, Prof. David Elmaleh, a serial biotech entrepreneur. She co-founded PureTech in 2005 with her husband, Prof. Bob Langer of MIT, and Dr. Eric Elkanow. PureTech’s model combines venture capital with active company management. One of its early ventures was Gelesis, which developed an anti-obesity pill. Karuna Therapeutics emerged from PureTech, achieving a breakthrough with its schizophrenia drug, which significantly increased the company’s valuation after successful clinical trials.

Seaport uses PureTech’s proprietary "Glyph" technology, which improves drug delivery to the brain by mimicking dietary fat molecules, reducing liver toxicity and enhancing efficacy. Their lead product targets a natural anti-anxiety compound, increasing its brain concentration ninefold to treat postpartum depression and other anxiety disorders. Seaport is also developing a non-hallucinogenic LSD-like drug to promote brain plasticity for PTSD and depression treatment.

Zohar emphasizes the complexity of drug development, advising transparency and reliability with investors. She advocates for stronger Israeli biotech integration, including clinical trials in Israeli hospitals, citing Israel’s excellent research infrastructure. Zohar and her husband are also active philanthropists supporting trauma-affected communities in Israel. She expresses concern over negative portrayals of Israel in American culture and the competitive threat from Chinese biotech innovation.

Currently, Seaport is conducting Phase IIb trials for major depressive disorder with anxiety, aiming to offer new effective treatments for millions worldwide. Zohar stepped down as PureTech CEO in 2024 to lead Seaport directly, continuing to influence both American and Israeli biotech sectors.