Venture Funding Deals: BioNTech's Big Money Leads January Financings
Executive Summary
BioNTech's $270m Series A round was the biggest start-up financing in January, but sizeable rounds also were raised by Centrexion ($67m), Eureka ($60m) and Pandion ($58m).
Derived from Strategic Transactions, Informa’s premium source for tracking life sciences deal activity, the Venture Funding Deals column provides a comprehensive monthly review of emerging biopharmaceutical companies that have received venture funding. This month’s column covers deals announced in January.
BioNTech Gets $270m In Series A Round
BioNTech AG secured $270m in Series A funding from lead investor the Redmile Group, Janus Henderson Investors, Invus, Fidelity Management & Research and European family investors including the Struengmann Family Office. Struengmann and MIF Fond seeded BioNTech with $180m back in 2008 when the company was formed. (Also see "BioNTech Raises $270M Series A Round To Pursue FIPCO Model" - Scrip, 4 Jan, 2018.)
BioNTech’s drug development offerings include miRNA, cell and gene therapies, protein therapeutics and small molecules, as well as diagnostic and biomarker discovery, and GMP manufacturing services. The company plans to use the Series A proceeds to advance its pipeline of individualized mRNA and CART/TCR therapies for melanoma, head and neck cancer, breast, ovarian and pancreatic cancers, and other solid tumors.
Among BioNTech’s development partners are Eli Lilly & Co., Genentech Inc., Sanofi and Genmab AS. Including the current funding round, grants, upfront payments and near-term milestone fees paid to BioNTech through its collaborations, the company has about $950m in available cash.
Carmot Brings In $15m Via Series B
Carmot Therapeutics Inc. raised $15m through its Series B financing led by first-time backer Horizons Ventures and returning shareholder The Column Group, which each add board members and were joined by private investors.
Carmot will use the proceeds to move its dual GLP-1R/GIPR agonist for type 2 diabetes through early clinical proof-of-concept. It also has preclinical candidates for obesity and fatty liver disease. The company uses its Chemotype Evolution drug discovery technology to identify leads from chemically diverse libraries for validated targets. Carmot has drug discovery deals with Amgen Inc. and Genentech.
Celtaxsys Raises Series E Funds
Celtaxsys Inc. raised an undisclosed amount in Series E financing led by Invus, which adds a board member and was joined by Domain Associates, Lumira Capital, Masters Capital Management, RMI Partners and the Georgia Research Alliance Venture Fund. The company will use the funds for ongoing development of Phase II acebilustat for cystic fibrosis and to prep for manufacturing.
Centrexion Raises $67m In Series D Round
Pain-focused Centrexion Therapeutics Corp. raised $67m in a Series D financing led by New Enterprise Associates. New and returning investors, including Quan Capital, ArrowMark Partners, investment funds advised by Clough Capital Partners LP, InterWest Partners, 6 Dimensions Capital and Efung Capital also participated in the round. NEA and Quan added members to the company board.
Centrexion will use the proceeds to fund a Phase III trial in chronic pain due to knee osteoarthritis (OA) for lead candidate CNTX4975, which is based on STRATI (Synthetic TRans cApsaicin ulTra-pure Injection) technology, both licensed from Boehringer Ingelheim GMBH under a March 2016 deal.
Injected directly into the joint, CNTX4975 targets the capsaicin receptor (TRPV1), which selectively and rapidly inactivates just the nerve fibers that transmit pain signals to the brain (without interfering with other sensory neurons) to provide rapid onset with a high degree and long duration of relief. With a 23% likelihood of approval rating (6% above average) from Biomedtracker, following a recently completed Phase IIb trial that demonstrated positive results, Centrexion expects to begin a Phase III human OA program for CNTX4975 in the first quarter 2018.
The company's pipeline of non-opioid compounds to treat different types of chronic pain avoids the risks of toxicities, dependence or abuse associated with other available therapies. In addition to CNTX4975, it has in development two Phase I analgesic compounds (also acquired from BI in 2016: CNTX0290 for neuropathic, inflammatory and mixed pain, and CNTX6970 for inflammatory pain) as well as preclinical programs in neuropathic pain (CNTX6016) and severe pain (intrathecal platform).
Although its financing history is not clear, Centrexion (which was founded in 2013) has raised at least $125m to date, including this round.
Elstar Therapeutics Raises $39m Through Series A
Elstar Therapeutics Inc. raised $39m from founding investor Apple Tree Partners in its Series A round. The company was formed in 2015 and is developing antibody-based multi-functional therapies derived from its Universal Targeted Immunotherapy (UniTI) platform. Molecules generated with UniTI have up to four functional domains designed to regulate immunological activities to kill cancer cells while also limiting overall systemic toxicity. Elstar plans to move targeted therapies for both solid and blood cancers into clinical trials in the near future.
Eureka Therapeutics Closes $60m Series D Round
Eureka Therapeutics Inc., which is developing T-cell immunotherapies for solid tumors, raised $60m in its Series D round led by Acorn Pacific Ventures. GP Capital and all existing investors also participated. Funds will support continued development of lead project ET190L1-ARTEMIS for relapsed/refractory CD19-positive non-Hodgkin lymphoma and advancement of other hematological and solid tumor candidates in its immuno-oncology pipeline.
Expansion Therapeutics Raised $55.3m Via Series A
Expansion Therapeutics Inc., which is developing RNA-targeted small-molecule therapies, raised $55.3m in its Series A financing co-led by 5AM Ventures, Kleiner Perkins, Novartis Venture Fund and Sanofi Ventures, which were joined by RA Capital Management and Alexandria Venture Investments.
Representatives from all backers except Alexandria Venture Investments have joined Expansion's board. The start-up is focused on creating therapeutics aimed at RNA-triggered diseases such as expansion repeat disorders for which there are no available options. In early-stage development Expansion has candidates for myotonic dystrophy Types 1 and 2. Myotonic dystrophy is an inherited condition that results in progressive muscle weakness and myotonia, central nervous system problems, cardiac issues and endocrine dysfunction. The company will use funds from the round for pipeline development.
NexImmune Raises $23m Through Series A Round
NexImmune Inc. raised $23m through its Series A round. New investor ArrowMark Partners and existing investor Barer & Son were the co-leads, and were joined by Piedmont Capital. (A syndicate of investors led by Barer & Son acquired NexImmune in early 2017.)
NexImmune is developing drugs based on its Artificial Immune Modulation (AIM) nanotechnology platform, and will use the Series A proceeds to advance its first adoptive cellular therapy (ACT) into Phase I/II trials for blood cancers. The company claims that its technology eventually could be applied to therapies for infectious diseases, but for now is focusing on solid and blood tumors.
Oculis Closes CHF20m Series B Round
Oculis raised CHF20m ($20.3m) through its Series B financing to new backers Bay City Capital, Novartis Venture Fund and Pivotal bioVenture Partners, and returning shareholders Brunnur Ventures and Silfurberg.
The company will use the funds for ongoing development of its lead compound OC118, which is in Phase IIb for diabetic macular edema. Proceeds also will be used to develop OC118 for other indications and for development of additional candidates that incorporate the firm's solubilizing nanoparticle (SNP) technology. Representatives from Bay City Capital, Novartis Venture Fund, Pivotal bioVenture and Brunnur Ventures will take board seats. (Also see "Oculis Raises CHF20M To Advance Topical DME Therapy And Turn Swiss" - Scrip, 5 Jan, 2018.)
Pandion Raises $58m In Series A Round
Pandion Therapeutics Inc., which is developing bispecific antibodies for inflammatory and autoimmune diseases, raised $58m through its Series A round. Seed investor Polaris Partners co-led the round, alongside Versant Ventures and Roche Venture Fund. BioInnovation Capital and SR One also took part.
Pandion’s approach aims to restore homeostasis directly at the disease site, using targeting fragments that bind to specific tissues together with effector molecules that modulate immune activity. The company’s antibodies avoid the potential negative side effects seen with systemic immunosuppression that occurs with traditional treatments. Pandion’s initial focus will be on inflammatory bowel disease, autoimmune liver disease, type 1 diabetes, kidney disease and autoimmune skin conditions.
At the end of 2017, Pandion announced a deal with Distributed Bio through which Pandion will license multiple antibodies discovered with Distributed Bio's SuperHuman antibody library platform, to be developed and commercialized as treatments for autoimmune, inflammatory and organ transplant indications.
Pherecydes Brings In €8.7m Via Series B
Pherecydes Pharma SA, which is developing bacteriophage-based anti-infectives, raised €8.7m ($10.3m) in its Series B financing led by Go Capital, which was joined by other new backers Omnes Capital, Fa Dièse and business angels, as well as returning shareholders ACE Management, Auriga Partners and Participations Besançon.
Pherecydes seeks to create phage therapies as an alternative and complement to antibiotics. The company will use the proceeds to move its Phosa and PneumoPhage programs into the clinic in 2018 and 2019, respectively. Phosa combines various bacteriophages against Staphylococcus aureus infections, while PneumoPhage aims to demonstrate the benefits of an inhaled phage therapy to treat acute respiratory tract infections caused by Pseudomonas aeruginosa.
Series A funds will also help establish a pharmaceutical production unit in Nantes, France, and to launch new programs in the next couple years. Representatives from Go Capital and Omnes will take seats on Pherecydes' supervisory board.
Scholar Rock Raises $47m Series C Round
Scholar Rock Inc., which is developing candidates that selectively modulate growth factor activation in various diseases, closed a $47m Series C round led by new investor Invus. Other new backer Redmile Group ad returning investors – including Polaris Partners, Timothy Springer, Arch Venture Partners, EcoR1 Capital, the Kraft Group, Fidelity Management & Research Co. and Cormorant Asset Management – also participated in the round.
The company will use the proceeds to progress into the clinic lead candidate SRK015, a preclinical TGF beta 1 inhibitor for spinal muscular atrophy (SMA). The Phase I trial, anticipated to begin in the first half of 2018, will evaluate the compound's ability to improve muscle strength and motor function in SMA patients. SRK015 also is in development for additional undisclosed neuromuscular disorders. Scholar Rock will also use the funds to advance pipeline candidates in other disease areas, including autoimmune, fibrosis, hematology and immuno-oncology.
Stoke Therapeutics Closes $40m Series A
Stoke Therapeutics Inc. raised $40m in its Series A financing from founding investor Apple Tree Partners. The start-up is using its TANGO (Targeted Augmentation of Nuclear Gene Output) platform to develop antisense oligonucleotide therapies that target RNA splicing to increase gene expression for the treatment of severe genetic diseases, such as those affecting the central nervous system, eye and liver. It seeks to create a new way to treat genetic diseases that cannot be treated using other methods including enzyme replacement and gene therapy. Stoke will use the proceeds to continue developing preclinical programs.
Themis Raises €10m In Series C Round
Themis Bioscience GMBH raised €10m ($12m) in its Series C financing led by Global Health Investment Fund, which adds a board member and was joined by returning shareholders aws Gruenderfonds, Omnes Capital, Ventech and Wellington Partners Life Sciences. The company will use the proceeds for ongoing development of vaccine candidates, including its lead program in Phase II for chikungunya virus.
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