VC Firm Manages NGM Bio's $122M Series A 3 Months Post-Privatization

Three months after The Column Group privatized NGM Bio, the venture capital firm has facilitated a $122 million fundraising round to support the clinical trials of NGM’s two key drug candidates. Column acquired NGM Bio in February, following a challenging 2023 for the biotech company, which included significant layoffs and a declining share price due to a phase 2 trial failure for an age-related macular degeneration treatment.

Since April, NGM Bio has operated as a private entity under Column's ownership. Column is now investing in NGM’s pipeline, with part of the $122 million Series A funding—led by a select group of investors including Column—allocated to aldafermin. Aldafermin, an engineered FGF19 analog, previously failed in trials for primary sclerosing cholangitis and metabolic dysfunction-associated steatohepatitis (MASH). Despite some subsequent positive data for MASH, NGM is now focusing on aldafermin for primary sclerosing cholangitis, for which it has received an orphan drug designation from the FDA. The new funds will support a registrational trial for aldafermin in this indication.

The remaining funds will be used to complete the phase 2 trial of NGM120, a GDF15/GFRAL antagonist being evaluated for hyperemesis gravidarum, a condition characterized by severe vomiting and nausea during pregnancy. Both trials are expected to commence in the fourth quarter of 2024, according to a July 17 release from NGM.

David Woodhouse, Ph.D., CEO of NGM, expressed gratitude towards Column and the new investors for their support, stating, “Having just completed a take-private transaction in April to bolster our efficiency and flexibility as a company, we’re grateful to [Column] and our new investors for their support of these important programs, and we look forward to sharing more details on both trials in the coming months.”

While not mentioned in the latest release, NGM has another clinical-stage asset, NGM707. In January, NGM reported promising responses from a phase 1 trial of NGM707, a dual ILT2/ILT4 antagonist, in combination with Merck & Co.'s Keytruda for multiple solid tumor indications.

Prior to acquiring NGM, Column already held nearly 27% of the company’s outstanding stock, making it the largest shareholder. In the same month that Column announced the acquisition, it also co-launched a $400 million fund aimed at supporting the progression of innovative ideas from the research stage to clinical proof of concept.

NGM Bio's strategic focus is now on advancing its clinical trials for aldafermin in primary sclerosing cholangitis and NGM120 for hyperemesis gravidarum. The financial backing from Column and other investors is expected to provide the necessary resources to move these programs forward, with significant developments anticipated in the near future.