Investors inject $370M+ into Ken Song's autoimmune biotech after RayzeBio triumph

Ken Song, an experienced biotech executive, has launched a new venture named Candid Therapeutics. The company made its public debut with over $370 million in funding and two clinical-stage T cell engagers, a class of drugs that have shown promise in oncology and may have potential in autoimmune diseases.

Song's most recent success was with RayzeBio, a radiopharma company that he sold to Bristol Myers Squibb for approximately $4.1 billion. He managed to take RayzeBio from its initial funding stages to an IPO in just three years, and subsequently to an acquisition in about three months. Following this deal, Song established Candid Therapeutics and began searching for clinical-stage drugs across various medical fields, including oncology, pain management, and autoimmune diseases. He explored nearly 50 opportunities before deciding to focus on T cell engagers.

The emerging data on cell therapies for autoimmune diseases caught Song’s attention. Companies like Caribou Biosciences and Nkarta have already begun exploring autoimmune indications, but Song believed T cell engagers could offer a more accessible and scalable solution compared to cell therapies. He emphasized that antibody-based approaches might be the right strategy for treating these conditions.

Song quickly secured investors willing to support his vision, ultimately raising more than $370 million. Candid Therapeutics then acquired two companies: Vignette Bio and TRC 2004. Vignette Bio was associated with Foresite Labs, while TRC 2004 came from Third Rock Ventures and Two River. Vignette Bio agreed to pay $60 million upfront for a BCMAxCD3 bispecific antibody from EpimAb Biotherapeutics, with potential milestone payments up to $575 million. TRC 2004 acquired a CD20xCD3 bispecific antibody from Genor Biopharma for a “double-digit million” upfront payment and up to $443 million in milestones.

Candid Therapeutics is also investing in the discovery of next-generation T cell engagers. The company has renamed its two acquired T cell engagers as CND106 and CND261. These drugs have already shown clinical data in over 130 cancer patients and are now being repurposed for autoimmune diseases. According to Song, Amgen has already paved the way in this field, with other drugmakers following suit.

Candid plans to commence clinical trials for these two antibodies early next year. While the specific lead indications for these trials have not been disclosed, the company intends to test them in similar or identical conditions, running the trials concurrently. Song believes that determining the best T cell target and therapeutic index is crucial and is open to comparing the efficacy of both molecules in the same indications.

Song is optimistic about the potential of Candid’s T cell engagers, suggesting they could surpass the clinical and commercial success of leading drugs like Humira and Rituxan. He highlighted the transformative and profound efficacy of T cell depletion observed in patients who are highly resistant to treatment.

The company has secured funding from notable investors such as Venrock, Fairmount Funds, TCGX, and venBio Partners, among others. The $370 million raised includes investments in Vignette and TRC 2004, with the majority being new funds assembled by Candid. Song expects this financing to sustain the company for several years.

Joining Song in Candid’s leadership team are Arvind Kush, the CFO who previously served at RayzeBio; Timothy Lu, the chief medical and scientific officer with experience leading IL-17 autoimmune drug development at Eli Lilly’s DICE Therapeutics; and Bernie Huyghe, the CTO who recently oversaw late-stage antibody trials at Viridian Therapeutics. Candid currently has around 18 employees.