AltruBio secures up to $225M after pivot to immune drug research

Biotechnology startup AltruBio recently secured a Series B funding round which could provide up to $225 million, continuing to benefit from a strategic shift made four years ago. Initially known as AbGenomics Holdings, the company focused on developing cancer treatments. However, in 2020, it revamped its strategy, changed its leadership, and rebranded as AltruBio. A year later, the company raised $63 million and initiated mid-stage testing for a drug aimed at treating ulcerative colitis.

The latest funding round was spearheaded by BVF Partners and included significant life sciences investors such as RA Capital Management and Cormorant Asset Management. This influx of investment occurs amid growing interest in immune disease drug development. Data from BioPharma Dive indicates that there have already been eight major acquisitions of immune drug developers this year, surpassing oncology mergers and acquisitions. Some of the largest deals include Roche's $7.1 billion acquisition of Telavant and Merck & Co.'s $10.8 billion purchase of Prometheus Biosciences.

This surge in interest has also benefited startups. Immune drug developers like Acelyrin, Apogee Therapeutics, and Kyverna Therapeutics have conducted three of the largest initial public offerings since the start of 2023. Furthermore, companies like Mirador Therapeutics, Capstan Therapeutics, and Lycia Therapeutics have each raised more than $100 million in the first half of 2024.

AltruBio has been a significant beneficiary of this investment boom. Since its rebranding and the appointment of former Bayer and Pfizer executive Judy Chou as CEO, the company has secured nearly $300 million in funding. The startup also enhanced its leadership team with the addition of Jesse Hall, a former Amgen executive, and Jeroen Grasman, who has over a decade of experience at Roche.

According to Chou, the transition from oncology to immunology has been a strategic and promising move for AltruBio. Despite the challenging capital markets of recent years, having a drug in mid-stage testing has given the company a competitive edge. The drug, codenamed ALTB-268, is a new version of a previously tested medicine that showed early promise in treating autoimmune conditions. Unlike cancer drugs that activate the immune system, ALTB-268 works by slowing down a specific type of immune cell, aiming to restore balance to the immune system in diseases like ulcerative colitis without broadly suppressing the body's defenses.

The increased interest and substantial funding in the sector highlight the urgent demand for innovative solutions to address the unmet medical needs of patients, said Jake Simson, a partner at RA Capital. AltruBio's Phase 2a study for ulcerative colitis should yield results in the first half of the coming year. The company also plans to initiate a Phase 2b trial with anticipated data readout in 2026.

The strategic shift and rebranding of AltruBio have positioned it well within the burgeoning field of immune disease drug development, attracting substantial investments and promising advancements in treatments for conditions like ulcerative colitis.