GlycoEra Secures $130M Amid Protein Degrader Interest

A biotechnology startup, GlycoEra, is making strides in the field of drug development with a novel approach to tackling autoimmune diseases. The company recently secured $130 million in Series B funding to initiate its first clinical trial for its leading drug candidate, GE8820. This new drug is designed to eliminate troublesome proteins located outside of cells. GlycoEra's CEO, Ganesh Kaundinya, emphasized the potential of GE8820 to serve as a versatile solution, possibly acting as a single-product pipeline due to its broad applications.

GE8820 specifically targets IgG4, a circulating antibody known for its protective role against allergies. However, IgG4 can malfunction and attack the body's tissues in various autoimmune conditions, including pemphigus, a skin disorder, and primary membranous nephropathy, a kidney condition. The drug employs a dual-acting mechanism to prompt the body to destroy the defective antibody. One part of the drug binds to IgG4 and transports it to the liver, while the other part attaches to a receptor that draws the antibody into cells, where it is broken down by the cell's internal protein-disposal system.

Preclinical testing has highlighted GE8820’s precision in removing malfunctioning IgG4 antibodies, a level of accuracy not achieved by other methods. This specificity may prevent the broadly immunosuppressive effects typically associated with other autoimmune medications, offering a potential advantage in patient care. Kaundinya noted that patients treated for autoimmune diseases often experience relapses after initial recovery. GlycoEra’s approach could improve patients' quality of life and contribute to more efficient healthcare economics by reducing these relapse rates.

While GE8820 is GlycoEra's flagship program, the company has identified three additional projects, although specific disease targets for these have not been disclosed. GlycoEra may seek approval to begin trials for a second drug by 2026. The success of the Series B funding round was led by Novo Holdings, with participation from the venture arms of major pharmaceutical companies Roche and Bristol Myers Squibb, as well as Sofinnova Partners and other firms. Max Klement, a partner at Novo Holdings, remarked on the limited competition and significant medical need in the autoimmune space, noting GlycoEra's strong biological rationale as a standout factor.

GlycoEra derives its name from glycosylation, the process involving the attachment of sugar chains to proteins. Headquartered in Wädenswil, Switzerland, the company also has a presence in Newton, Massachusetts. It originated as a spin-off from Swiss biotech LimmaTech Biologics in January 2021 and raised approximately $49 million in its Series A funding later that year.

The latest funding round underscores the growing interest in protein degraders, which offer innovative solutions for targeting proteins that traditional drug-making methods cannot effectively reach. Since the early 2000s, research into protein degradation has expanded, leading to the emergence of various companies employing diverse strategies to eliminate harmful proteins. While many focus on intracellular targets, GlycoEra sets its sights on extracellular proteins located outside cells or on their membranes. Other startups like EpiBiologics and Lycia Therapeutics are also exploring this promising avenue in the biotech landscape.