Candid Therapeutics launches with $370m for T-cell targeting

Candid Therapeutics, a biotechnology startup specializing in T cell engager (TCE) antibodies, has launched with an impressive $370 million in initial funding. The company aims to develop innovative antibody drugs targeting inflammatory diseases, including rheumatoid arthritis. Leveraging its substantial financial backing, Candid plans to create T cell engager antibodies that selectively focus on and eliminate specific B lymphocyte populations implicated in autoimmune disorders. This targeted depletion has demonstrated clinical effectiveness in managing conditions such as rheumatoid arthritis and myasthenia gravis.

Based in San Diego, California, Candid's Series A funding round was co-led by several notable investment firms, including Venrock Healthcare Capital Partners, Fairmount, TCGX, and venBio Partners. Additional participants in the funding round included Foresite Capital and Third Rock Ventures, among others.

As part of its initial portfolio, Candid has acquired two advanced bispecific antibodies: CND106, a BCMAxCD3 antibody from Vignette, and CD20xCD3 from TRC 2004. Both of these candidates have already undergone Phase I clinical trials involving over 130 oncology patients and exhibit potential as treatments for autoimmune diseases.

Ken Song, the newly appointed CEO of Candid Therapeutics, emphasized the promise of TCE antibodies. According to Song, these antibodies show significant potential to become scalable and patient-friendly options for depleting B cells in the treatment of multiple autoimmune conditions. Song's experience includes his previous role as CEO of RayzeBio, which was acquired by Bristol Myers Squibb in December 2023.

The debut of Candid Therapeutics aligns with a growing interest in T cell engager technologies within the biopharmaceutical industry. For instance, in January 2024, MSD acquired Harpoon in a $680 million deal that included Harpoon’s T cell engagers. One of Harpoon’s candidates, HPN328, is currently in a Phase I/II trial for certain types of lung cancer and neuroendocrine tumors, developed using the TriTAC platform.

Additionally, in April, Roche shared promising data from a trial of its bispecific T cell engager, Columvi (glofitamab). This drug, which targets CD3 on T cells and CD20 on B cells, demonstrated improved survival rates in a Phase III lymphoma trial. The trial involved 270 participants who received either Columvi or Rituxan (rituximab) along with a chemotherapy regimen consisting of gemcitabine and oxaliplatin.

In the announcement of Candid's launch, CEO Ken Song expressed optimism that the company's drugs could surpass the clinical and commercial success of established autoimmune treatments like Humira and Rituxan. AbbVie’s Humira (adalimumab) and Biogen and Genentech’s Rituxan (rituximab) are well-known blockbuster drugs in the autoimmune sector, generating revenues of $14.5 billion and $1.8 billion respectively, according to their latest financial reports.

Candid Therapeutics enters a competitive field with a robust financial foundation and a clear strategy aimed at advancing the treatment of autoimmune diseases through innovative T cell engager antibody therapies. The company’s focus on selective targeting and depletion of B lymphocytes marks a significant step forward in the development of next-generation treatments for inflammatory conditions.