Character Biosciences raises $93M for genetics-based ophthalmology

Character Biosciences, a New Jersey-based biotechnology firm, is stepping into clinical trials with two experimental drugs aimed at treating age-related macular degeneration (AMD), a leading cause of vision loss among the elderly. The company has gathered valuable genetic and imaging data from an extensive observational study involving over 6,500 participants, which has helped shape their approach towards combating this prevalent eye condition.

To advance its drug candidates to Phase 1 trials within the year, Character Biosciences has successfully secured $93 million in Series B funding, building on previous financial rounds, including an $18 million Series A in 2022. This latest investment is expected to support the company through Phase 2 testing for both of its intravitreal drug candidates. According to Cheng Zhang, the CEO and co-founder of Character Biosciences, the funds will be instrumental in pushing the development forward.

The company's investors include prominent names such as aMoon, Luma Group, Bausch + Lomb, Jefferson Life Sciences, Innovation Endeavors, Catalio Capital Management, S32, and KdT Ventures. Character's announcement came on the same day as Hillstar Bio's debut funding round, marking a unique instance in the current economic climate, where venture capital rounds in biotech have seen a noticeable decline.

Character Biosciences has strategically selected drug targets based on extensive patient data from their observational study, believing that this wealth of information will significantly increase the likelihood of clinical success. By focusing on the patients most likely to benefit from treatment, the company aims to improve outcomes. The study was conducted across more than 150 ophthalmology centers, many of which will be used for the upcoming clinical trials.

The company is exploring CTX114, a treatment designed to slow the progression of geographic atrophy in advanced dry AMD. This condition has become increasingly popular among drug developers, as seen with recent FDA approvals for therapies from Astellas and Apellis Pharmaceuticals. However, both companies have faced regulatory challenges in Europe, highlighting the complexity of bringing such treatments to market.

Character's approach with CTX114 involves targeting a different genetically supported aspect of the complement pathway, a method used by other approved drugs like Astellas' Izervay and Apellis' Syfovre. CTX114 is an engineered version of factor H-like protein 1, a negative regulator of complement activation. The company hopes to offer a less frequent dosing schedule compared to the existing treatments, which require monthly or bi-monthly administration.

In preparation for their investment, aMoon investors consulted with ophthalmologists about the geographic atrophy treatment landscape. They received feedback indicating that while current treatments may not be ideal, there is significant demand for alternatives with similar efficacy but improved safety profiles.

Additionally, Character is developing CTX203, an apolipoprotein A1 mimetic peptide, to prevent the progression to advanced AMD by stabilizing ABCA1 expression. This drug forms part of the company's broader strategy to address AMD with innovative solutions.

Character Biosciences has also partnered with Bausch + Lomb to develop new treatments for AMD, although this collaboration does not involve the CTX114 or CTX203 candidates. The partnership aims to move from incidence-driven drug development to a model focused on identifying specific patient populations likely to respond to treatment, thereby enhancing the precision of therapeutic interventions.

Furthermore, Character holds valuable datasets in glaucoma, which could potentially lead to future partnerships and expand their impact in the ophthalmology field. The firm remains committed to leveraging its extensive data resources to pioneer new treatments and improve patient outcomes in eye health.