Tune Secures $175M for Hepatitis B and Epigenetic Research

Tune Therapeutics, a genetic medicine startup, has secured $175 million in Series B funding to advance its innovative approach to treating diseases by modulating gene activity rather than editing genes directly. This funding announcement comes as the J.P. Morgan Healthcare Conference kicks off, a significant event for the biotechnology and pharmaceutical industries. This investment is part of a larger trend, with nearly $2 billion in private funding being announced within the biotech sector over the past week, as reported by BioPharma Dive.

The company's flagship treatment, Tune-401, is being developed to address chronic hepatitis B by targeting the viral DNA integrated into the host's cells as well as the DNA circulating within the cell. Chronic hepatitis B affects over 250 million individuals globally and is associated with serious health issues such as liver failure and cancer. Unlike traditional treatments that combat the virus directly, Tune-401 aims to inhibit the virus by altering gene expression through epigenetic editing. Akira Matsuno, a co-founder of Tune Therapeutics and its current Chief Financial Officer, likens this approach to fixing a leak by turning off the faucet. The company has initiated a Phase 1 clinical trial for Tune-401 in both New Zealand and Hong Kong.

Epigenetic editing is viewed by scientists as a more precise and less invasive alternative to existing DNA-editing technologies like CRISPR. This method offers the ability to turn genes on or off without causing DNA damage. Matsuno highlights the potential of these targeted therapies to open new avenues for medical applications over time. Tune Therapeutics builds on the pioneering work of Charles Gersbach from Duke University and Fyodor Urnov from the University of California, Berkeley.

The Series B funding round for Tune Therapeutics was co-led by New Enterprise Associates, Yosemite, Regeneron Ventures, and Hevolution Foundation. Previously, the company raised $40 million in a Series A round upon its launch in 2021. The need for innovative approaches to chronic diseases, which are increasing in prevalence and severity, is underscored by William Greene, Chief Investment Officer at Hevolution Foundation. Greene believes that epigenetic editing could be a transformative tool in developing regenerative medicine.

Tune Therapeutics is not alone in exploring the potential of epigenetic editing in medicine. Other companies in the field include nChroma Bio, which emerged from the merger of Chroma Bio and Nvelop Therapeutics late last year. NChroma Bio is also working on a hepatitis B treatment but has yet to begin human trials. Epicrispr Therapeutics, previously known as Epic Bio, is conducting research on treatments for conditions such as muscular dystrophy and alpha-1 antitrypsin deficiency.

Despite the promise of these technologies, the broader field of genetic medicine is experiencing a slowdown in investment. Funding for cell and gene therapy developers has decreased in 2024 compared to the previous two years, as noted by BioPharma Dive. This trend suggests that while specific areas like epigenetic editing are gaining traction, overall investment in the genetic medicine sector is facing challenges.