AdvanCell secures $112M Series C for radiopharmaceuticals

AdvanCell, a biotech company specializing in radiopharmaceuticals, has successfully secured $112 million in Series C funding. This substantial investment comes roughly two years after the company raised $12 million in a Series B round in 2022. The radiopharmaceutical market has seen significant growth since then, attracting considerable interest and investment from both large pharmaceutical companies and emerging biotech startups. Major players in the pharmaceutical industry, including Novartis, Eli Lilly, Bristol Myers Squibb, and AstraZeneca, have invested billions to acquire companies in this burgeoning field. Additionally, several radiopharmaceutical startups have entered into partnerships or secured licensing deals.

AdvanCell, based in Sydney, has entered into a collaboration with Indianapolis-based Point Biopharma in 2023, under undisclosed terms. In a significant development, Eli Lilly acquired Point Biopharma for over $1 billion in October 2023. AdvanCell's business model is built around its proprietary manufacturing process, which currently supports a Phase 1/2 clinical trial at several locations in Australia. The company announced that the new funding will be used to expand the study of its radionuclide therapy and to initiate human trials for other candidates in its pipeline.

The Series C funding round was co-led by SV Health Investors, Sanofi Ventures, Abingworth, and SymBiosis. Existing investor Morningside participated, along with new investors such as Tenmile and Brandon Capital. The company is led by founder and CEO Andrew Adamovich, who has assembled a team of former executives from Point Biopharma and RayzeBio to guide AdvanCell's therapies through clinical trials. Currently employing 60 people, AdvanCell is focusing on developing alpha radiotherapies.

In the radiopharmaceuticals sector, there is ongoing debate about whether to use an alpha or beta approach. Beta emitters can travel further but cause only single-strand DNA damage, suggesting a lower efficacy in killing cancer cells compared to alpha emitters, which can induce double-stranded breaks in DNA. Although alpha emitters do not travel as far, their ability to create these breaks is believed to be more effective in eliminating cancer cells. Actinium is a leading contender among alpha emitters, with BMS' RayzeBio expected to reach a Phase 3 readout next year and potential market launch by 2027. However, supply challenges and concerns over toxicity due to "dirty decay" are prompting companies to explore alternative methods.

AdvanCell is adopting a lead-based approach, which may present fewer side effects due to lead's shorter half-life compared to actinium. Jamil Beg, a partner at SV Health Investors and now an AdvanCell board member, noted that although logistical challenges exist in delivering this product, thorough evaluation during due diligence has confirmed its feasibility. He pointed out that other companies have successfully conducted clinical studies using lead-based approaches.

AdvanCell's technology focuses on alpha decay, which can be particularly lethal to cells and effective against cancerous cells. Established in 2019, AdvanCell operates a 40,000-square-foot manufacturing facility near Brisbane, Australia, which began contributing to the clinical supply for its Phase 1/2 trial in October. The company is currently testing ADVC001, a lead-based PSMA program targeting prostate cancer. With the newly acquired funds, AdvanCell aims to expand its manufacturing capabilities into the United States.

The company's website mentions six additional pipeline programs targeting a range of cancers, including metastatic melanoma, ovarian, breast, lung, colorectal, and others. Although the Series C funding will not support all seven candidates entering clinical trials, it will advance the development of several. Pharmaceutical companies have expressed interest in some of AdvanCell's programs, according to Jamil Beg.