The class of cancer therapies called antibody-drug conjugates (ADCs) continues to be an area of strong investor interest, and Torl BioTherapeutics is the latest biotech company to capitalize on it. This week, Torl unveiled $158 million in funding, the same amount it raised when it launched last year.
Los Angeles-based Torl calls the new capital a Series B-2 financing. Proceeds will support further clinical development of its lead program TORL-1-23. This ADC targets tumors that express a protein called claudin 6 (CLDN 6). While this protein is overexpressed by many types of cancer cells, its expression in healthy tissue is limited, making it a promising drug target.
Torl said it plans to use the new capital to complete Phase 1 testing of TORL-1-23. The company then plans to move forward with a pivotal Phase 2 clinical trial evaluating CLDN 6-targeted therapy in platinum-resistant ovarian cancer in the second half of this year. Proceeds will also fund the early development of other programs addressing other cancer targets. Torl’s most recent funding was led by Deep Track Capital, which participated in the company’s 2023 Series B round. New investors include RA Capital Management, Perceptive Advisors and Avidity Partners.
Here is a summary of other recent biopharma industry financings:
– PureTech Health introduced Seaport Therapeutics, a clinical-stage startup developing neuropsychiatric drugs released via the body’s lymphatic system. Seaport is backed by $100 million in Series A financing.
– EnteroBiotix, a Glasgow, Scotland-based developer of microbiome therapies, raised £27 million (approximately $34 million). The company will use the capital to advance lead drug candidate EBX-102-02 through a Phase 2 clinical trial for the treatment of irritable bowel syndrome. Funding will also support the development of other liver cirrhosis and hepatic encephalopathy programs.
– Wellington Management led Obsidian Therapeutics’ $160.5 million Series C financing. The Cambridge, Massachusetts-based cell and gene therapy developer will support OBX-115, a tumor-infiltrating lymphocyte (TIL), in clinical development for melanoma and non-small cell lung cancer. Obsidian has partnerships with Vertex Pharmaceuticals and Bristol Myers Squibb.
–Alterome Therapeutics, a company that uses machine learning in drug discovery, has closed $132 million in financing. The San Diego-based biotech will use the new capital to advance several small molecules into clinical development, including a highly specific AKT1-E17K inhibitor and a selective KRAS inhibitor. Goldman Sachs Advisors led the Series B round.
– Neurosterix started with $63 million and a pipeline of preclinical drugs for neurological diseases. The small molecule drugs and the technology platform on which they were manufactured come from Addex Therapeutics. The money comes from Perceptive Xontogeny Venture Funds. Addex receives 5 million francs and a 20 percent equity stake in Neurosterix.
– Diagonal Therapeutics has emerged from obscurity with $128 million and a technology platform that uses artificial intelligence in the discovery and development of agonist antibody drugs. The Cambridge, Massachusetts-based startup’s lead program is in preclinical development for hereditary hemorrhagic telangiectasia, a rare bleeding disorder for which there are no FDA-approved therapies.
– Avenzo Therapeutics has closed $150 million in financing to support the clinical development of AVZO-021. This is a phase 1 development for HR-positive, HER2-negative breast cancer and other solid tumors. The San Diego-based biotech company claims its drug, a CDK2 inhibitor, could be best-in-class. New Enterprise Associates, Deep Track Capital, Sofinnova Investments and Sand Capital led what Avenzo called Series A-1 financing.
– Mirador Therapeutics launched with $400 million in seed funding and Series A funding to support the development of novel drugs targeting inflammation and immunology. Mirador’s disease targets remain unknown, but the biotech is led by the same management team that led inflammatory disease biotech Prometheus Biosciences to a $10.8 billion acquisition by Merck last year.
– Neuroscience company Engrail Therapeutics Raised $157 million to support a drug pipeline that includes anxiety, depression, post-traumatic stress disorder and rare neurodegenerative diseases. The most advanced program is ENX-102, which is in Phase 2 testing for the treatment of generalized anxiety disorder. Engrail’s Series B round was co-led by F-Prime Capital, Forbion and Norwest Venture Partners.
– Spin-off from Johns Hopkins University Buckle Therapeutics started developing T-cell engagers against cancer with $150 million This could offer safety and effectiveness advantages over drugs in the same drug class. Buckle’s Series A financing was led by Catalio Capital Management, Third Rock Ventures and Novo Holdings.
– Cell therapy developer Capstan Therapeutics has closed $175 million in financing. The startup uses messenger RNA to deliver instructions that reprogram a patient’s T cells to pursue a target. The lead program, CPTX2309, aims to destroy B cells that cause autoimmune diseases. RA Capital Management led the Series B financing. San Diego-based Capstan said it will support the lead cell therapy through a clinical proof of concept. Capstan, a spinout from the University of Pennsylvania, was founded in 2022.
– As cancer drug developer Tubulis prepares to enter the clinic this year, the Munich-based biotech company has raised €128 million (approximately $139 million) in Series B2 financing. In addition to supporting its ADC pipeline, the new capital will flow into a US subsidiary at a location to be determined.
Image: abluecup, Getty Images