Pheon raises $120m in Series B, leveraging ADC trend

Pheon Therapeutics, a biotechnology company based in the UK, has successfully raised $120 million in a Series B funding round. The funds will be utilized to advance the company's oncology pipeline, which focuses on antibody-drug conjugates (ADCs). ADCs are an innovative class of targeted cancer therapies that link an antibody to a biologically active drug, enhancing the delivery of the drug directly to cancer cells.

Pheon plans to use the newly acquired funds to progress three ADC candidates to clinical proof of concept. These candidates target a novel, undisclosed marker that is significantly overexpressed in various solid tumors. The company's initial Phase I trial for its lead ADC candidate is scheduled to begin by the end of this year. Pheon aims for a swift progression to dose expansion stages following the initial trial phase. The lead ADC employs a DAR8 topoisomerase 1 inhibitor linker payload, although detailed information about its mechanism remains sparse.

The Series B funding round saw participation from a diverse group of investors. These included U.S.-based venture capital firms such as Atlas Venture, BVF Partners, and Perceptive Advisors. Australian investment firm Brandon Capital, European venture capital group Forbion, Canadian Lightspeed Venture Partners, and Research Corporation Technologies also contributed to the round.

The field of ADCs has garnered substantial interest and investment recently. For instance, in January, Roche entered a global partnership and licensing agreement with Medilink Therapeutics for its ADC, YL211, targeting solid tumors. This collaboration is valued at potentially over $1 billion in milestone payments.

Other pharmaceutical giants have also made significant investments in ADC technology. In December 2023, Johnson & Johnson's Innovative Medicine division acquired development and commercialization rights to LegoChem Biosciences' ADC candidate LCB84. This deal could be worth up to $1.7 billion in upfront and milestone payments. In November 2023, AbbVie made headlines by purchasing the ADC specialist company ImmunoGen for $10.1 billion. ImmunoGen's leading ADC, Elahere (mirvetuximab soravtansine-gynx), reported $64 million in sales in the first quarter of this year.

Additionally, in October 2023, MSD signed a substantial development and commercialization agreement with Daiichi Sankyo. The partnership, worth up to $22 billion, involves three of Daiichi Sankyo's DXd ADCs. These transactions highlight the growing importance and potential of ADCs in modern oncology treatments.

Beyond these significant deals, companies specializing in ADC drug discovery have also seen remarkable success. AbCellera, for example, has established multiple ADC drug discovery partnership agreements with firms like Regeneron, Prelude Therapeutics, and Confo Therapeutics.

With the Series B funding, Pheon Therapeutics is well-positioned to make significant strides in its ADC development efforts. The company's focus on targeting a novel and highly overexpressed marker in solid tumors could potentially lead to breakthrough treatments in the oncology space. The upcoming Phase I trial will be a critical step in demonstrating the efficacy and safety of its lead ADC candidate, setting the stage for future advancements in cancer therapy.