ArsenalBio raises $325M for early solid tumor trials

Arsenal Biosciences, a startup specializing in CAR-T cell therapy, has successfully secured $325 million in a Series C financing round as it advances its early-stage trials aimed at addressing solid tumors. Despite achieving one of the largest private biotech financing rounds in 2024, the company is also setting clear priorities for its research and development pipeline. The company's lead program, AB-1015, which targets ovarian cancer, will remain in Phase 1 trials.

CEO Ken Drazan highlighted the significance of AB-1015, noting that it was the first program introduced into clinical trials. The insights gained from this initial program have informed the development of second- and third-generation therapies. The recent funding round, which follows a $220 million raise two years ago, will allow ArsenalBio to focus on its second clinical-stage autologous cell therapy, AB-2100, aimed at treating kidney cancers. This therapy entered clinical trials earlier this year, and Drazan expects an update on clinical progress by the end of the year. Additionally, the company aims to introduce a third cell therapy for prostate cancer by late 2025 or early 2026.

ArsenalBio's approach involves in-house manufacturing of its cell therapies, utilizing synthetic biology, computational methods, and other technologies to genetically modify a patient's own T cells to target solid tumors. While cell therapies have revolutionized the treatment of blood cancers, their application to solid tumors presents more substantial challenges.

The latest funding round attracted several new investors, including ARCH Venture Partners, Milky Way Investments Group, Regeneron Ventures, Nvidia’s venture capital arm, T. Rowe Price, and Rock Springs Capital. Existing investors also participated, such as Bristol Myers Squibb, Westlake Village BioPartners, SoftBank Vision Fund 2, and the Parker Institute for Cancer Immunotherapy. Drazan emphasized the diversity of the investor group, which includes traditional specialists, firms interested in crossovers or IPOs, and strategic investors with specific interests. He hinted at potential upcoming news related to these varied investor interests.

Drazan co-founded ArsenalBio in January 2019, following his tenure as president of Grail. The leadership team boasts notable experts in cell therapy development and manufacturing, including Chief Medical Officer Susie Jun, formerly the chief development officer at Allogene, and Tim Sirichoke, head of technical operations, who has experience at Kite Pharma, Novartis, and Genentech.

ArsenalBio has grown to employ 265 staff across its locations in South San Francisco and Hayward, California. The company is actively working on two solid tumor CAR-T cell therapies in collaboration with Bristol Myers Squibb and conducting research in undisclosed areas with Genentech, which is scaling back certain cancer immunology efforts.

As cell therapies are increasingly being explored for autoimmune conditions, ArsenalBio's focus remains on solid tumors. However, the company's technology platform holds potential to support autoimmune drug developers. Drazan indicated that the company might engage in business development to provide this capability, with possible announcements expected later this year.