Immunotherapy developer Abcuro received disappointing news this year as its lead drug candidate fell short in a clinical trial expected to support a regulatory submission in a rare muscle disorder with no FDA-approved therapies. But the company sees a path forward for its molecule, and some investors do too. Abcuro now has $66 million in financing for another clinical trial.
Newton, Massachusetts-based Abcuro is developing a drug for inclusion body myositis (IBM), part of a group of muscle diseases called idiopathic inflammatory myopathies. IBM develops as immune cells infiltrate muscle tissue and concentrate between muscle fibers. Patients experience progressively worsening muscle function.
Abcuro contends that IBM develops from pathogenic T cells that express a protein called killer cell lectin-like receptor G1 (KLRG1). The biotech’s drug, ulviprubart, is a monoclonal antibody designed to selectively target and deplete these pathogenic T cells, but spare other immune cells.
While Phase 2/3 results during presented in March during the Global Conference on Myositis were not statistically significant, Abcuro pointed to a trend showing a slowing of disease progression relative to placebo in the overall study population. There was also a 50% slowing of disease progression in a pre-defined analysis of less severe IBM patients. The study drug showed a favorable safety and tolerability profile.
Abcuro estimates that about 40,000 patients have been diagnosed with IBM in the U.S. The company also estimates that patients with less severe disease represent about half of the overall IBM population. The newly raised capital will support a clinical trial that Abcuro said could support a regulatory submission for ulviprubart in patients with less severe IBM. The company added that it has been in discussions with the FDA and plans to begin this study in the fourth quarter of this year.
Abcuro last raised money in early 2025, a $200 million Series C round led by New Enterprise Associated. The new financing is a Series D round was led by New Leaf Venture Partners. Other participants in the latest financing include funds managed by abrdn Inc., Bain Capital Life Sciences, Samsara BioCapital, Redmile Group, Mass General Brigham Ventures, RA Capital Management, Pontifax, Sanofi Ventures, Foresite Capital, NEA, Eurofarma Ventures, Kaitai Capital, Soleus Capital, Nancy Chang, Shang Bay, and Rock Springs Capital.
Here’s a recap of other recent biotech financings:
Inflammation & Immunology Financings
—Boulevard Bio emerged from stealth backed by $65 million from Deerfield Management, which formed the immunology startup. Boulevard’s scientific co-founder is Georg Schett, a German physician/scientist regarded as a pioneer in immune reset. The biotech’s lead program is in early clinical development for the rare kidney disease immunoglobulin A nephropathy.
—Infinimmune raised $75 million as it prepares to begin Phase 1 testing of two human-derived monoclonal antibodies for atopic dermatitis. These drug candidates come from a platform technology whose insight about antibody design comes from screening and analyzing human samples. Regeneron Ventures and Playground Global co-led Infinimmune’s Series A financing.
—Remepy closed $36 million that will support plans for a global Phase 3 test of Hybridopa, a drug in development for Parkinson’s disease. The startup develops “hybrid drugs” that combine prescription medicines with personalized, AI-driven therapeutic apps.
—Khartis Therapeutics added $50 million in funding to support a lead program in development for thyroid eye disease (TED). The Khartis drug is an oral small molecule inhibitor of the IGF-1, a receptor that plays a role in the inflammation that drives TED. Amgen’s Tepezza and Viridian Therapeutics’ recently approved Lumvoa already address that target, but are administered as intravenous infusions, so the pill formulation of Khartis’s drug would bring patients dosing convenience. Forge Life Science Partners led the Series B financing for Khartis, which incubated in Foresite Labs.
—Epicrispr Biotechnologies closed $90 million to support a pipeline led by EPI-321, a potential treatment for the rare disease for facioscapulohumeral muscular dystrophy (FSHD). This drug is part of a new class of programmable epigenetic medicines designed to durably regulate gene expression without permanently changing DNA. A Phase 1/2 test of EPI-321 is ongoing. Epicrispr’s Series C financing was co-led by Octagon Capital and Janus Henderson Investors.
—Vaderis Therapeutics secured $152 million for Phase 3 testing of engasterib, a drug in development for hereditary hemorrhagic telangiectasia, a rare blood vessel disorder with no FDA-approved treatments. The Vaderis drug is an oral small molecule inhibitor of AKT1 and AKT2, proteins that plays a role in the growth and proliferation of cells, including the abnormal cell growth underlying HHT. The Series B round was co-led by Life Sciences at Goldman Sachs Alternatives and TCGX. Vaderis said the capital will support the program through potential FDA approval of engasterib.
—LifeMine Therapeutics, a biotech that discovers drug by analyzing fungi, revealed $263 million to support lead program LIFE-001 for preventing organ transplant rejection. A Phase 1 study is ongoing; the financing will also support plans to start a Phase 2 kidney transplant study and a Phase 1 islet cell transplant study, both expected to begin early next year. The financing breaks down to a $75 million Series D round and a $188 million Series E round that bring in new investors Bezos Expeditions, Gates Frontier, and RA Capital Management. LifeMine, co-founded by serial biotech entrepreneur Greg Verdine, last disclosed raising money in 2022, a $175 million Series C financing.
—Expedition Therapeutics secured $115 million for Phase 2 tests of lead program EXPD-101 in chronic obstructive pulmonary disease (COPD). The oral small molecule was licensed from Fosun Pharma last year. It’s designed to inhibit DPP1, an enzyme that activates neutrophils, a type of white blood cell that can drive inflammation. General Atlantic led Expedition’s Series B financing, which comes less than a year after the startup launched with $165 million in Series A financing.
—Crystalys Therapeutics raised $130 million to support Phase 3 tests of dotinurad, a URAT1 inhibtor for gout. The Series B round came less than a year after the startup launched with its in-licensed drug and $205 million in Series A financing. Frazier Life Sciences led Crystalys’s latest financing.
—Drug Farm raised $55 million to support DF-003, which is entering Phase 3 development for ROSAH syndrome, a rare genetic autoinflammatory disorder caused by mutations to the ALPK1 gene. DF-003 is a small molecule ALPK1 inhibitor. Drug Farm described the financing as the first close of a Series D round. It was co-led by Shanghai Pudong Leading Area Investment Center and Shanghai Puxing Collaborative Private Equity Fund Partnership Enterprise.
Cash for Cancer Drugs
—InduPro landed $77 million for Phase 1 testing of its lead program in advanced squamous non-small cell lung cancer and other solid tumors. The drug, IDP-001, is a bispecific antibody designed to target EGFR and a novel tumor-associated proximity antigen called TAPA-E1. The biotech says hitting both targets enhances tumor selectivity, target internalization, and antitumor efficacy without sacrificing tolerability. The Column Group led InduPro’s Series B round.
—Radiopharmaceuticals developer AdvanCell raised $315 million to support Phase 3 testing of ADVC001 in metastatic prostate cancer. This therapeutic candidate targets the protein PSMA, delivering to prostate cancer cells a payload of Lead-212. AllyBridge Group led AdvanCell’s Series D round.
—In other radiopharmaceuticals financing news, Ratio Therapeutics raised $70 million to support its pipeline, including lead program, [Ac-225]RTX-2358. This FAP-targeted therapy is in Phase 1/2 in advanced sarcomas. The capital, a Series C financing, will also go toward advancing additional programs to the clinic. The new round of funding included participation from earlier investors Duquesne Family Office and Bristol Myers Squibb, along with new investors Catalio Capital Management, Eli Lilly, and Wasatch Group.
Neuroscience Financings
—Novartis Venture Fund led a new €40 million (about $46.7 million) investment in Kynexis. The brain disease-focused biotech will apply the capital to KYN-5356, closing out the Phase 2 study in cognitive impairment associated with schizophrenia and preparing for Phase 3 testing. Preliminary Phase 2 results are expected by the end of this year. Netherlands based Kynexis said the latest financing extends its Series A round to €97 million (about $110 million).
—Draig Therapeutics secured $65 million to support its pipeline, including lead program DT-101, an AMPA receptor potentiator in Phase 2 testing for major depressive disorder. Deep Track Capital led Draig’s Series B round.
AI Biotech Financings
—Network Bio launched with $50 million to expand its platform technology, which it says develops disease-specific AI models trained on large-scale tissue, blood, molecular, and clinical datasets. Through collaborations with academic medical centers, the company has created a research network of large biobanks. Bringing together biobanks from institutions and industry partner is intended to create a research resource reflecting diverse patient populations.
—AI startup Aureka Biotechnologies closed $100 million in funding for research and training of its next-generation biological foundation models for drug discovery. The company said Granite Asia funded the first tranche of the Series B financing and an unnamed strategic investor led a subsequent second tranche. To date, Aureka said it has raised nearly $200 million total.
—MindRank AI, which has an end to end platform technology for drug R&D, raised $52 million to support a pipeline led by MDR-001, an oral small molecule GLP-1 agonist in Phase 3 testing in China, where the company is based. The Series B financing was led by a group of unnamed institutional and healthcare funds.
More Biotech Financings
—Vedanta Biosciences unveiled $60 million to fund Phase 3 testing of VE303, a microbiome therapy for C. difficile infection. The financing breaks down as $40 million from AMR Action Fund and BNP Paribas Asset Management Alts and $20 million under an existing contract with the Biomedical Advanced Research and Development Authority. Preliminary trial data are expected in the first half of next year.
—Claris Biotherapeutics closed $118 million in funding to advance to pivotal testing next year with CSB-001, a potential treatment for limbal stem cell deficiency, a vision disorder with no approved therapies. Samsara Biocapital and Catalio Capital Management led Claris’s Series B financing.
—Mighty Therapeutics, parent company to Stealth Biotherapeutics, secured $25 million in funding from founding investor Morningside. Mighty described this financing as the first close of a Series B round. The company also has a credit facility of up to $125 million. The capital will support Mighty’s drug elamipretide. Last year, the FDA awarded the peptide accelerated FDA approval for treating the ultra-rare mitochondrial disorder Barth syndrome. Mighty continues to evaluate this drug in other indications.
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