Four VC rounds raise almost $400M for immunology, oncology, and obesity programs

Four biotech companies collectively amassed $389.3 million in venture capital funding on Thursday. This substantial financial influx highlights a more supportive venture capital (VC) atmosphere this year, with investors showing readiness to back substantial funding rounds. Notably, Thursday's fundraising included two "megarounds" constituting half of the total amount raised. During the first quarter, at least 18 companies secured $100 million or more in VC funds, compared to 13 companies in the same period last year.

Bluejay Therapeutics spearheaded the fundraising efforts with an impressive $182 million series C round. The financing was co-led by Frazier Life Sciences and an institutional investment firm focused on life sciences. Other participants included RA Capital Management, T. Rowe Price, Wellington Management, Novo Holdings, RiverVest Venture Partners, Octagon Capital, Arkin Bio Ventures, HBM Healthcare Investments, and Unicorn Capital. Bluejay is advancing BJT-778, an antibody targeting the hepatitis B surface antigen to treat chronic hepatitis D (HDV). This investigational therapy, currently in Phase I/II trials, holds PRIME designation from the European Medicines Agency. Last year, Bluejay shared positive results from a Phase Ia study, which demonstrated that BJT-778 was safe and well-tolerated with no dose-limiting toxicities. Previously, Bluejay had raised a $41 million series B round in 2022.

Attovia Therapeutics garnered the second-largest round of the day, raising $105 million in a series B round to advance its biologics into clinical trials. This new round brings Attovia’s total funding to $165 million since its inception last year. Goldman Sachs Alternatives led the series B round, with new investors Cormorant Asset Management, Nextech Ventures, Redmile Group, EcoR1 Capital, Marshall Wace, and Logos Capital joining the round. Existing investors Frazier Life Sciences, venBio, and Illumina Ventures also contributed. Attovia is focused on developing ATTOBODIES, biparatopic biologics that leverage spatial positioning technology for high binding affinity. The company's lead candidate, ATTO-1310, is an anti-IL31 biologic with a long half-life, which is set to begin clinical trials for atopic dermatitis by the end of the year. Attovia also plans to file an IND for its second program, ATTO-002, next year. This bispecific biologic targets IL31 and IL13 and aims to treat various immune-mediated diseases.

Aardvark Therapeutics raised $85 million in a series C round led by Decheng Capital. The funds will support the company's lead candidate, ARD-101, an oral TAS2R pan-agonist that stimulates enteroendocrine cells to release gut-peptide hormones, mediating hunger through gut-brain signaling. Aardvark targets hyperphagia, a severe hunger symptom experienced by patients with Prader-Willi Syndrome (PWS), for which there is no approved treatment. Last year, Aardvark reported Phase II trial results showing that ARD-101 reduced hunger in patients with PWS and obesity. The recent funding will enable Aardvark to complete its clinical program for ARD-101 in hyperphagia and demonstrate its complementary mechanism to GLP-1s in treating obesity. New investors in the series C round included Cormorant Asset Management, Surveyor Capital, SymBiosis, Tetragon Financial Group, Walleye Capital, Laurion Capital Management, LG Technology Ventures, Cantor Ventures, Silver Arc Private Capital, and the Prader-Willi Syndrome Association. Previous investors, such as the Foundation for Prader-Willi Research and Vickers Venture Partners, also participated.

Danish biotech company Commit Biologics received €16 million ($17.3 million) in seed funding to develop its Bispecific Complement Engaging (BiCE) platform, which integrates single-domain antibodies targeting C1q with antibodies that bind to cellular targets. This platform aims to enhance the complement system's role in immune defense, improving the efficacy of T-cell directed therapies by broadening their therapeutic index and reducing toxicities. Backed by Bioqube Ventures and Novo Holdings, Commit aims to advance therapies for cancer and autoimmune diseases through this innovative approach.