Kailera launches with $400M Series A and Chinese obesity drugs

Kailera Therapeutics has entered the burgeoning obesity treatment field with a substantial $400 million in series A funding and a portfolio of assets acquired from China. The biotech firm, located in Massachusetts and California, is under the leadership of former Cerevel Therapeutics CEO Ron Renaud. Although Kailera is making its public debut now, the company had already secured the rights to four GLP-1 drugs outside of China from Jiangsu Hengrui Pharmaceuticals in May.

The company's most advanced asset is HRS9531, now renamed KAI-9531, an injectable GLP-1/GIP receptor dual agonist. According to Kailera, this drug has shown “compelling results” in phase 2 trials for obesity and Type 2 diabetes in China. Additionally, their portfolio includes another clinical-stage asset: an oral small molecule GLP-1 receptor agonist. Following this is a once-daily oral GLP-1/GIP receptor dual agonist and an injectable GLP-1/GIP/glucagon receptor tri-agonist.

Kailera is entering a market already filled with big pharmaceutical companies and smaller biotech firms vying for a share in the lucrative obesity treatment space. Currently, Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound dominate this market. Despite the crowded field, investors have shown confidence in Kailera's newly acquired assets. The $400 million series A funding round was co-led by Atlas Venture, Bain Capital Life Sciences, and RTW Investments, with additional participation from Lyra Capital.

In a statement on October 1, Kailera CEO Ron Renaud expressed optimism about the company's future: “In this period of rapid innovation in the metabolic space, I believe that Kailera is poised to make an impact beyond the current market leaders. With a clinically-advanced, differentiated pipeline, a talented and experienced team with a track record for building companies with lasting impact, and the support of a world-class investor syndicate, we are uniquely positioned to advance innovative therapies that have the potential to meaningfully impact both quality of life and overall health for many people.”

Renaud brings significant experience to Kailera. He managed neuroscience biotech Cerevel in the months leading up to its acquisition by AbbVie and also served as a senior adviser at Bain Capital. He is joined at Kailera by fellow Cerevel alumni Paul Burgess, who serves as chief operating and chief business officer. Additionally, Scott Wasserman, M.D., former CEO of Latigo Biotherapeutics, has been appointed as chief medical officer. The board of directors is chaired by John Milligan, Ph.D., who previously served as CEO of Gilead Sciences.

By combining seasoned leadership with a promising drug portfolio, Kailera Therapeutics aims to become a significant player in the metabolic and obesity treatment market. The company plans to leverage its innovative therapies to improve the quality of life and overall health for many individuals. With substantial backing from top-tier investors and a strong management team, Kailera is well-positioned to make notable advancements in its field.

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