These 22 Biotechs Collectively Raised $3.3 Billion in Q1 2024. What Do They Have to Offer?
The biotech industry is experiencing a big wave of investment, similar to the high levels seen between 2020 and 2021.
In just the last three months, there's been a rush of big money deals, with companies like Engrail Tx, Clasp Tx, Capstan Tx, and Mirador Tx announcing large funding amounts of $157 million, $150 million, $175 million, and $400 million, respectively.
Since the beginning of the year, 22 biotech startups have raised over $100 million each (see table below).
Investors are showing interest in companies that are close to or in the middle of clinical trials, which means they're testing their treatments on people. For instance, out of the 22 biotech startups with significant rounds in 2024, only 6 are in the preclinical stage.
Another quite expected insight seen from the table is that the majority of them, 10 companies, are focused on oncology as the key area.
This shift towards funding more mature companies suggests investors are looking for safer bets, learning from past investments in very early-stage projects that didn’t pan out.
In any case, the current biotech investment climate is great news for companies working on cutting-edge science, especially those working on new treatments that need a lot of money to start up, like cell and gene therapies.
Now, let’s have a look at some of the companies on the list, focusing mostly on those with tech platforms or AI-driven approach:
Alumis
Alumis focuses on developing oral therapies for immune-mediated diseases, using a precision approach to target immune dysfunction. Their pipeline includes therapies designed to optimize clinical outcomes through careful selection of targets, molecules, indications, and patient groups.
Recently, Alumis announced a $259M Series C financing to advance its clinical-stage pipeline, including ESK-001, an oral allosteric TYK2 inhibitor for plaque psoriasis, which showed positive data in a Phase 2 trial.
This March, Alumis announced positive results from a Phase 2 trial of ESK-001 for plaque psoriasis at the AAD Meeting, showing high efficacy and safety, with Phase 3 trials planned for 2H 2024.
Capstan Therapeutics
Capstan Therapeutics is a biotechnology company founded in 2021, based in California, USA. It is dedicated to advancing in vivo cell reprogramming through targeted lipid nanoparticles, focusing on developing therapeutics for a broad spectrum of diseases.
Capstan's core platform technology specializes in expanding the therapeutic potential of in vivo RNA-based therapies through proprietary targeted delivery systems.
Recently, the company announced a $175 million oversubscribed Series B financing, highlighting its mission to multiply therapeutic possibilities for patients by developing targeted in vivo RNA technologies. Capstan Therapeutics is actively developing medicines that reprogram cells inside the body, positioning itself at the forefront of in vivo cell therapy innovation.
BioAge Labs
BioAge Labs, a clinical-stage biotechnology company focused on developing treatments for obesity and metabolic diseases by harnessing the biology of aging, recently announced the completion of a $170 million oversubscribed Series D financing round.
BioAge Labs' AI-driven discovery platform systematically analyzes biomarkers from longitudinal aging data to uncover key molecular pathways that influence human longevity. This approach enables the identification of potential therapeutic targets and the development of novel treatments for metabolic diseases, with a specific focus on mechanisms that have been validated to extend healthy lifespan in humans.
The funding is earmarked for Phase 2 clinical development of BioAge’s lead compound, azelaprag, an oral apelin receptor agonist, in combination with Lilly’s Zepbound (tirzepatide) and other incretins for the treatment of obesity. This collaboration with Eli Lilly’s Chorus organization aims to initiate studies by mid-2024.
Azelaprag has shown promise in a Phase 1b trial, promoting muscle metabolism, increasing energy expenditure, and preventing muscle atrophy in healthy older volunteers at bedrest.
Preclinical studies also indicated that azelaprag could double the weight loss achieved with incretin drugs, with improvements in body composition and muscle function.
Tubulis
Tubulis is a biotechnology company dedicated to reimagining antibody-drug conjugates (ADCs) for the treatment of solid and hematologic tumors.
Tubulis employs a comprehensive suite of proprietary technologies, including the P5/Tubutecan platform, to create uniquely matched ADCs, offering innovative solutions for overcoming historical challenges associated with ADC development and expanding their applicability in oncology.
Tubulis also utilizes proprietary TUB-TAG technology, to generate uniquely matched antibody-drug conjugates. The TUB-TAG platform is a chemical conjugation approach that enables the precise and stable attachment of drugs to antibodies, aiming to improve the therapeutic index and effectiveness of ADCs across a range of indications.
The company recently closed an upsized €128 million Series B2 financing round to accelerate the clinical development of its ADC pipeline focused on solid tumors.
Engrail Therapeutics
Engrail Therapeutics, a clinical-stage biopharmaceutical company founded in 2019, specializes in developing transformative medicines for neurologic, neuropsychiatric, and neurodevelopmental disorders.
Engrail's research includes modulation of GABA and dopamine pathways, aiming for enhanced therapeutic effects with minimal side effects compared to traditional treatments.
Their lead clinical compounds, such as ENX-102, target GABAA receptors for disorders like generalized anxiety, while also exploring treatments in dopamine modulation for depression and copper transport mechanisms for diseases like Menkes disease. Engrail's approach represents a promising advancement in precision neuroscience.
Engrail Therapeutics recently closed an oversubscribed $157 million Series B financing round raising the company's total to over $220 million since its 2019 inception.
Neurona Therapeutics
Neurona Therapeutics is a clinical-stage biotherapeutics company dedicated to developing regenerative cell therapies aimed at repairing the nervous system. By focusing on the targeted repair of dysfunctional neural circuits underlying chronic diseases, Neurona leverages the potential of neural cell therapies to provide long-lasting disease amelioration. Their innovative approach involves the development of allogeneic, off-the-shelf neural cell therapies for various chronic neurological disorders, including a leading candidate, NRTX-1001, a first-in-class inhibitory neuron therapy for epilepsy. This approach promises curative outcomes from a single, one-time dose by permanently integrating into neural circuits, replacing affected cells, and rebalancing dysregulated electrical activity.
Neurona raised $120 million in February 2024 to further advance its innovative pipeline of regenerative cell therapy candidates for chronic neurological disorders.
Clasp Therapeutics
Clasp Therapeutics is focused on revitalizing the promise of immuno-oncology through next-generation T cell engagers (TCEs) designed for precision medicine. The company aims to expand the reach of immuno-oncology with innovative therapies that allow the immune system to specifically identify and destroy hard-to-treat tumors bearing common driver mutations. By targeting mutated protein fragments displayed by specialized HLA molecules on cancer cells, Clasp seeks to target the majority of cancer-driving proteins that are not accessible to traditional antibody-like drugs. Their approach promises enhanced tumor specificity and the potential for creating precision treatments across a wide spectrum of driver mutations in various cancer types, representing a significant advancement in the treatment of neuropsychiatric and neurologic disorders.
Clasp Therapeutics recently launched with a $150 million Series A financing, co-led by notable investors including Novo Holdings, Third Rock, and Catalio.
Fogpharma
FogPharma is at the forefront of developing a novel class of precision medicines known as Helicons™, aiming to transcend the limitations of current precision therapies and achieve universal druggability.
As a clinical-stage entity, FogPharma uses an innovative discovery engine to enable the creation of Helicon therapeutics against challenging targets across various disease areas.
Helicons uniquely combine the targeting capability and specificity of antibodies with the extensive tissue distribution and intracellular engagement typical of small molecules.
FogPharma's flagship program, FOG-001, is a pioneering TCF-blocking β-catenin inhibitor undergoing Phase 1/2 clinical trials, marking a significant step toward addressing previously intractable cancer drivers.
FogPharma recently announced a significant $145 million financing round on March 1, 2024.
