Alcolase secures £1.3m to tackle alcohol intolerance in East Asia

Danish biotech startup Alcolase has locked in €1.5million (£1.3m) of funding to create an enzyme-based treatment for ALDH2 deficiency – an alcoholic intolerance condition that affects around 540 million people in East Asia.

ALDH2 deficiency is a condition that impacts millions of people across East Asia, and makes it difficult for the body to break down acetaldehyde – a toxic byproduct of alcohol metabolism – resulting in symptoms like nausea, flushing, discomfort and heightened risks of esophageal cancer.

In a bid to help an underserved population, Alcolase is working on producing liposomal encapsulation technology, which aims to break down alcohol in the body before it is absorbed by the bloodstream, reducing systems associated with the condition.

The company plans to initially enter the market in Singapore and South Korea after securing £1.3m investment from Ada Ventures, Deliphinus Venture Capital, Antler, Manigoff Invest and a group of angel investors.

Backstory behind the business

The idea for Alcolsae was first sparked in the Covid pandemic in a student dorm. Mikkel Precht and his co-founders wanted to use knowledge of biotechnology to solve a real-world problem, and after meeting people living with alcohol intolerance, Precht decided it was the issue he wanted to focus on.

The firm was officially founded in 2020 by Precht, along with Jeppe Malthe Mikkelsen and Mads Emil Mikkelsen, and is supported by Ib Christensen and Henrik Almdal.

“When you speak to people with alcohol intolerance, you realise this is not about wanting to drink more. It is about not being shut out of dinners, work events and family gatherings because of a genetic difference. We want to give people a real choice they are currently denied,” he said.

“What drives me is the idea that biotechnology can solve problems that affect people’s everyday lives. If we succeed, we can create a healthier alternative for a very large number of people.”

What will the new funding go towards?

When most people drink, the liver metabolises alcohol by first converting it into a toxic compound called acetaldehyde, before rapidly converting it into acetate, which is harmless. However, for those with ALDH2 deficiency, the second step is severely impaired or non-existent, leading to a build up of acetaldehyde. 

US-headquartered companies, including ZBiotics and Cheers, are also aiming to tackle ALDH2 deficiency. However, these companies target acetaldehyde after alcohol has entered the bloodstream, in contrast to Alcolase, which is the first company to employ an enzyme-based system in the stomach.

The new funding will support Alcolase’s first in vivo study, and will also strengthen the company’s patent portfolio, while supporting initial commercial steps towards partnerships in key markets.

‘ALDH2 deficiency has been hiding in plain sight’

The Copenhagen-based company has set up a UK subsidiary, supported by Ada Ventures, to bolster the development of its delivery platform for therapeutic use-cases.

Speaking of the partnership, Alasdair Thong, venture partner at Ada Ventures, said: “Alcolase is exactly the kind of company we look for: a science-led team tackling a problem that affects hundreds of millions of people. ALDH2 deficiency has been hiding in plain sight. It’s a genetic reality for around 540 million people in East Asia, yet barely addressed by mainstream health innovation. 

“The team is using biotechnology to give people a real choice in how they participate in social and cultural life, without compromising their health.”

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