According to data sourced from Crunchbase, the funding for Biotech companies represents a 161 percent upsurge compared to the USD 1.1 billion raised by the largest funding rounds which involved healthcare-focused biotech companies in the first quarter of 2023. Here, we are going to talk about 10 companies in detail and another 10 companies which indicate that investors are confident in betting the market viability of promising healthcare biotechnology firms. Having said that, investors increasingly prefer companies with clinical-stage assets. funding for pre-clinical platform biotechs has been made more strict than before.
Biopharma investors have also become more selective in the wake of the pandemic-era boom. If we look back to 2023, Biopharma investors invested USD 29.9 billion across 920 deals, with deal activity declining in the second half of the year according to a report from Pitchbook. So, VC funding for biotech startups was in the ballpark of USD 23 billion across 613 deals. Furthermore, according to research from HSBC, there is quite a noticeable dip of 21 percent from 2022 and 42 percent from the peak in 2021 if we look at it from an overall perspective.
The following summaries of top healthcare biotech funding recipients in Q1 2024 highlight companies across a range of promising focus areas, including precision oncology, AI-driven drug discovery, cell and gene therapies and novel approaches to treating autoimmune disorders. A table summarizing the core funding details follows the descriptions.
Now let’s look at this 10 companies who has raised quite the noticeable amount of funding:
1. Alumis raises USD 529 Million in Cumulative Funding, including USD 259 Million in Series C
Formerly known as Esker Therapeutics, Alumis, is a South San Francisco-based precision immunology company. The company was funded in the year 2021, wherein, it specializes in developing targeted treatments for immune-mediated diseases with a niche focus on autoimmune conditions.
Furthermore, Alumis aims to replace broad immunosuppression treatments with therapeutics addressing the specific causes of multiple autoimmune diseases. Using a precision analytics platform developed by Foresite Labs, its lead compound, ESK-001, is a highly selective TYK2 inhibitor in development for the treatment of psoriasis. Also, Phase 3 trials are planned for the second half of 2024, wherein, the company is set to use the latest funding to support two ongoing phase 2 trials of ESK-001 in systemic lupus erythematosus (SLE) and noninfectious uveitis.
2. Freenome Secures USD 1.35 Billion in Complete Funding, including USD 254 Million in Series E
Another South San Francisco-based biotech, Freenome, was founded in 2014. This establishment’s mission statement was to detect cancer in its earliest and most treatable stages. If we speak of the company, it applies molecular biology, computational techniques and machine learning to analyze blood samples. These are carried out to detect cancer in its early detection.
Dedicated to mitigating the danger related to world’s second deadliest cancer responsible for over 50,000 annual deaths in the U.S, Freenome’s first blood test targets early detection of colorectal cancer. The company has also been devising a blood test for early lung cancer detection.
3. Sionna Therapeutics Bagged USD 292 Million, with USD 182 Million Series C
Sionna Therapeutics has secured over USD 333 million in investment, including USD 182 million in the March 2024 Series C round. The company's investors include Enavate Sciences, Viking Global Investors, Perceptive Advisors, RA Capital, OrbiMed, TPG's The Rise Fund, and the Cystic Fibrosis Foundation.
Sionna Therapeutics is a Massachusetts-based life sciences business that develops cystic fibrosis therapies. Since its inception in 2019, the firm has conducted considerable research on genetic alterations related with cystic fibrosis in order to develop breakthrough small-molecule medicines.
Sionna's medicines target the most prevalent CF-causing genetic mutation, with the goal of normalizing the function of the cystic fibrosis transmembrane conductance regulator (CFTR) protein. And, with four molecules set to enter clinical trials by the end of 2024, the company's main drug, SION-638, is now in Phase 1 studies.
4. Capstan Therapeutics attracts $175 million Series B
On our fourth position is a San Diego-based biotech company named Capstan Therapeutics. The company has secured USD 340 million in funding which also includes an oversubscribed USD 175 million Series B round in the month of March this year. If we speak of the company, it focuses on developing precision in vivo cell engineering technologies. Addinto it, Capstan, in stealth mode, is developing off-the-shelf immunotherapies for oncology, fibrosis, inflammatory diseases and blood monogenic disorders. Moreover, the Series B proceeds will help advance CPTX2309 which demonstrates Capstan’s lead in vivo CAR-T candidate.
Haig Aghajanian, co-founder and VP of Research at Capstan, is affiliated with the University of Pennsylvania. According to a credible January 2022 study by Aghajanian and Penn Medicine colleagues, it demonstrated an experimental immunotherapy using mRNA to temporarily reprogram immune cells. This innovative technology is said to have the potential applications in treating fibrosis, which has contributed to numerous serious disorders in the past.
5. BioAge Labs secures $294 million in funding, adds $170 million Series D
BioAge Labs, a Richmond, California-based clinical-stage biotechnology company, has raised approximately $294 million in funding, including a $170 million Series D round in February 2024. The company researches therapies for obesity and metabolic diseases, focusing on the mechanisms of aging.
Their lead compound, azelaprag, is an oral apelin receptor agonist with promising early trial results. BioAge plans to use the funding for Phase 2 trials of azelaprag combined with Eli Lilly’s Zepbound (tirzepatide) for obesity treatment. The studies with Zepbound are expected to begin in mid-2024, in collaboration with Lilly.
Founded in 2015 and led by CEO Kristen Fortney, BioAge Labs has developed an AI-driven platform to analyze biological pathways and identify drug targets with potential impacts on longevity.
6. Jixing Pharmaceuticals raised $162 million in Series D
In January 2024, Jixing Pharmaceuticals, a Chinese company, raised a total of $162 million via a Series D transaction. The biopharma firm creates innovative treatments for eye and cardiovascular conditions. The investment was made by RTW Investments and Bayer, which contributed €116 million ($127 million) and €32 million ($35 million), respectively. The R&D pipeline of Jixing and the advancement of treatments via clinical trials will be expedited by this investment. The funding demonstrates increased interest in Chinese pharmaceutical businesses meeting global health demands and conveys investor confidence in Jixing's potential.
7. Obsidian Therapeutics raises $325 million, includes $160.5 million Series C.
Obsidian Therapeutics, a clinical-stage biotechnology firm situated in Cambridge, Massachusetts, has received about $325 million, with $160.5 million coming from an April 2024 Series C investment. The business creates cell and gene therapies for cancer therapy, leveraging its cytoDRiVE technology to precisely regulate protein expression.
OBX-115 is Obsidian's flagship program which is currently undergoing clinical trials for metastatic melanoma and non-small cell lung cancer. If we speak of the investors, it includes Wellington Management, Foresite Capital, Janus Henderson Investors, Novo Holdings A/S, RTW Investments, T. Rowe Price, and Woodline Partners LP.
8. Clasp Therapeutics secures $150 million in Series A investment
Clasp Therapeutics, based in Cambridge, raised $150 million in a January 2024 Series A investment, which is the company's total funding to date. The company develops precise immuno-oncology drugs for difficult-to-treat malignancies. Clasp Therapeutics' approach focuses on assisting the immune system in fighting otherwise difficult-to-treat malignancies. This substantial initial funding reflects investor confidence in the company's vision and ability to address significant unmet needs in cancer therapy.
9. FogPharma secures $530 million, including $145 million in Series E
Clinical-stage biotechnology startup FogPharma which is stationed out of Cambridge, Massachusetts, has garnered USD 530 million in investment so far, with a USD 145 million Series E round which took place in March 2024. Cell-penetrating miniproteins (CPMPs), the main technology of FogPharma, are intended to specifically target and eliminate proteins within cells that cause cancer. This strategy broadens the pool of possible therapeutic targets beyond what can be achieved with traditional treatments.
10. Tubulis raises €128 million ($140 million) in Series B
Tubulis, a German biotechnology startup that specializes in antibody-drug conjugates (ADCs), has raised almost $218 million in total investment. Their March 2024 Series B round raised €128 million ($140 million). The business creates ADCs for the treatment of solid tumors and hematological cancers.
Tubulis has a unique ADC development platform that focuses on increasing efficacy while lowering toxicity. This considerable financing demonstrates great investor trust in the company's ADC technology and its ability to provide new treatment choices for difficult malignancies.
Furthermore, adding up the aforementioned company, Crunchbase data show that the 10 aaditional healthcare-focused biotech businesses raised a total of $2.9 billion in the first quarter of 2024.
Here's the other 10 funding worth mentioning are as follows:
11. Alterome has Obtained USD 231 million which includes USD 132 Million Series B
12. Diagonal Therapeutics Brought in USD 128 million fund in Series A funding
13. Neurona Therapeutics Raised USD 120 million in Series E financing
14. Rakuten Medical secures USD 119 million in Series E which make the total accumulating to USD 737.6 million in funding
15. ProfoundBio secured USD 112 million Series B with a focus on advancing antibody-based cancer therapeutics
16. Zephyr AI was garnered USD 111 Million Series A with a drive towards developing AI-driven precision medicine in the field of oncology and cardiometabolic diseases
17. Cour Attracted USD 105 million Series A to develop nanoparticle-based autoimmune disease therapies
18. Alamar Biosciences secures USD 100 million Series C so as to transform early cancer detection
19. OnCusp Therapeutics has Raised USD 100 million Series A to translate oncology research into novel therapies
20. BlossomHill Therapeutics Raised USD 100 million Series B with Total ammounting to USD 173 Million in Total
