AvenCell Secures $112M for Switchable CAR-T Blood Cancer Therapies

AvenCell Therapeutics announced on Tuesday that it has secured $112 million to continue the clinical studies of two experimental CAR-T cell therapies for acute myeloid leukemia (AML). This Series B funding comes despite a general cooling of investor interest in cancer cell therapies recently. AvenCell CEO, Andrew Schiermeier, acknowledged the current investor sentiment, stating that many investors in cell therapy have not been satisfied with previous outcomes. He emphasized that strong scientific and clinical data can still attract investor interest.

The funding round was led by Novo Holdings and included contributions from F-Prime Capital, Eight Roads Ventures Japan, Piper Heartland Healthcare Capital, and NYBC Ventures. AvenCell’s founding investor, Blackstone Life Sciences, also participated in the round. The company originated from gene editing technology developed by Intellia Therapeutics, funding from Blackstone, and the acquisition of the German biotech firm GEMoaB. AvenCell is focused on developing switchable CAR-T therapies, which can be turned on and off using a protein to potentially reduce the serious toxicities associated with these treatments.

AvenCell's approach is currently being tested in AML, a field where no CAR-T therapies have succeeded to date. Schiermeier pointed out that the lack of success is mainly due to the toxicity linked to targeting CD123 in AML. He explained that aggressively targeting CD123 results in unacceptable toxicity, making it a suitable initial indication for their switchable CAR concept.

Michael Bauer, a partner at Novo Holdings who is joining AvenCell’s board, noted that the investment bar for AML cell therapy is lower compared to therapies for other blood cancers like multiple myeloma or B cell lymphomas, where CAR-T therapies have already been approved. Bauer mentioned that Novo Holdings had previously evaluated GEMoaB but did not invest at that time due to its stake in Arcellx, which had a similar approach. After exiting Arcellx, which is now a public company, and seeing AvenCell produce clinical data, Novo Holdings found AvenCell's valuation more reasonable.

Last year, AvenCell shared data from an early-stage study involving its first 19 patients, showing an overall response rate of 53%. Schiermeier reported that the company now has data from 26 patients in the dose escalation phase and has also included “the first handful” of patients in the dose expansion phase. He highlighted that a few patients have experienced long-term complete responses lasting beyond six months.

In addition to its primary AML therapy, AvenCell is developing a second therapy that also targets CD123 using gene editing technology. This second CAR-T cell therapy is allogeneic, meaning it does not require patients' own cells. In February, the company announced that it had dosed its first patient with the allogeneic CAR-T cell therapy.

AvenCell is also exploring opportunities in the autoimmune space, a growing area of interest for many cell therapy companies. Schiermeier hinted that the company might start working in this space soon, though he did not provide a specific timeline.