Eliem Therapeutics Closes Tenet Medicines Acquisition and $120M Private Placement

Eliem Therapeutics, Inc., a company specializing in autoimmune-driven inflammatory diseases, has announced the completion of its acquisition of Tenet Medicines. The acquisition, finalized on June 27, 2024, marks a significant milestone for Eliem as it intensifies efforts to develop therapeutics for autoimmune diseases. The company’s primary focus will be advancing TNT119, an anti-CD19 antibody, which is intended to treat a wide array of autoimmune conditions such as systemic lupus erythematosus, immune thrombocytopenia, and membranous nephropathy.

Alongside the acquisition, Eliem completed a $120 million private placement of its common stock. This financing round included participation from various institutional life science investors such as RA Capital Management, Deep Track Capital, Boxer Capital, Janus Henderson Investors, Pontifax, and Samsara Biocapital. The combined company's cash reserves now total approximately $220 million, projected to sustain operations through 2027. These funds will support the progression of TNT119 through crucial clinical and development milestones.

Andrew Levin, Executive Chairman of Eliem, emphasized the transformative nature of this milestone for the company, noting that the robust financial backing positions Eliem to advance TNT119 through various stages of development. The company plans to initiate Phase 2 clinical trials for TNT119 later in the year, targeting multiple autoimmune disorders.

In addition to the acquisition and funding announcements, Eliem has fortified its leadership team. Dr. Aoife Brennan has been appointed as President, Chief Executive Officer, and Director, while Dr. Jan Hillson joins as Senior Clinical Advisor. Dr. Stephen Thomas, the former CEO of Tenet, has also been appointed to Eliem’s Board of Directors. According to Levin, the search for new leadership was extensive, and both Brennan and Hillson were identified as ideal candidates due to their extensive experience and exemplary track records.

Dr. Brennan expressed her enthusiasm about joining Eliem at this pivotal juncture. She highlighted the successful acquisition of Tenet Medicines and the strengthened financial position as key enablers for realizing the potential of TNT119. Brennan is optimistic about making significant progress in advancing the company’s clinical and development goals, ultimately aiming to improve the lives of patients with autoimmune diseases.

TNT119 targets CD19, a protein found on the surface of B cells that are involved in the pathogenesis of autoimmune diseases like systemic lupus erythematosus. By depleting these CD19-expressing B cells, TNT119 aims to reduce the production of autoantibodies responsible for inflammation and tissue damage. Eliem’s strategy involves developing TNT119 for multiple autoimmune conditions where CD19-targeted approaches have a strong biological rationale and potential for clinical success.

Dr. Brennan brings over 20 years of experience in drug development, having previously served as President and CEO of Synlogic. Her background includes leading organizations through various stages of growth and achieving significant clinical milestones. Dr. Hillson, a rheumatologist and clinical immunologist, has over 15 years of experience in the biotech industry, focusing on immunology and therapeutic development.

The acquisition and new appointments are expected to steer Eliem towards its goal of becoming a leading company in immunology and inflammation, focusing on novel treatments for autoimmune diseases. With a dedicated team and solid financial support, Eliem is well-positioned for continued growth and innovation in the field of autoimmune therapeutics.