Isomorphic Labs, a young company whose artificial intelligence technology for drug research has already landed partnerships with big pharmaceutical companies, unveiled $600 million in new financing this week as it looks to advance its own drug pipeline.
London-based Isomorphic is an autonomous subsidiary of Alphabet. It came from DeepMind, a different Alphabet subsidiary that uses machine learning to solve problems. Isomorphic was formed in 2021 to build on the success of DeepMind’s AlphaFold, a technology that successfully predicted how a protein would fold based on its amino acid sequence. The company is led by founder and CEO Demis Hassabis, who also co-founded and leads DeepMind.
Early last year, Isomorphic revealed two partners: Eli Lilly and Novartis. Both alliances, which span the discovery of small molecules for multiple undisclosed targets, came with upfront cash and the potential for milestone payments.
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Isomorphic says its AI drug design engine has foundational AI models capable of working across multiple therapeutic areas and drug modalities. The company is not yet disclosing the targets or therapeutic areas of its internal research. But as an example of its capabilities, Isomorphic points to AlphaFold 3, which was released by the company and DeepMind last year. This technology can predict the structure and interactions of all of life’s molecules.
Isomorphic said the new financing, its first external round, was led by Thrive Capital and included participation from GV and follow-on capital from earlier investor Alphabet. In addition to supporting its AI drug design engine, the capital will also help Isomorphic advance internal programs to the clinic.
Isomorphic’s large financing comes amid investment headwinds. Capital raised by biotech companies in the first quarter of this year comes out to about $13 billion, analysts at William Blair said in a research note. That’s well below the $25.7 billion raised in the first quarter of 2024 and it’s also below the $18.8 billion quarterly average last year. Though 2024 started strong, the firm notes that biotech funding has declined sequentially for four consecutive quarters.
Here’s a recap of other recent financings as the first quarter came to a close:
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—AIRNA raised $155 million to advance to Phase 1/2 testing with AIR-001, a potential treatment for alpha-1 antitrypsin deficiency. Venrock Healthcare Capital Partners led the Series B round, which was co-led by Forbion Growth. Here’s more about AIRNA’s RNA-editing therapy for AATD, which puts it in competition with Korro Bio and Wave Life Sciences, both in early clinical development with RNA-editing therapies for the rare liver protein deficiency.
—Character Biosciences pulled in $93 million to reach the clinic with two internally discovered complement inhibitors, each in development for different stages of the dry form of age-related macular degeneration. The Series B financing was co-led by aMoon and Luma Group, both new investors in the startup. Character, a spinout of Clover Health, closed an $18 million Series A financing in 2022.
—Epicrispr Biotechnologies raised $68 million as it prepares for Phase 1 testing of EPI-321, an epigenetic therapy that addresses the underlying cause of facioscapulohumeral muscular dystrophy (FSHD). The South San Francisco-based biotech’s therapies come from Gene Expression Modulation System, a technology that enables precise and durable control of gene expression. Epicrispr presented preclinical data for the FSHD therapy last fall during the European Society of Cell and Gene Therapy annual meeting.
—Tempero Bio closed $70 million in funding to support TMP-301 for substance use disorders. The Oakland based company plans to advance the drug candidate two Phase 2 tests, one in alcohol use disorder and the other in cocaine use. 8VC led Tempero’s Series B financing.
—Hillstar Bio launched with $67 million to support the development of immunotherapies for autoimmune diseases. The Boston-based startup says its therapies selectively deplete pathogenic cells while preserving healthy ones. The company’s lead program targets TRBV9-positive T cells; a clinical trial is planned for 2026 with an initial focus on axial spondyloarthritis and potentially other immune and inflammatory disorders.
—Flagship Pioneering revealed its latest AI startup, Lila Sciences. While Lila’s technology allows it to process large amounts of data and make predictions, and the company says its technology also helps scientists design and conduct new experiments, generating hypotheses and testing them in real-world environments.
Lila isn’t developing its own drugs. Rather, it’s looking to strike up partnerships with other companies aiming to leverage the technology for applications ranging from drug R&D, carbon capture, and sustainable agriculture. While Flagship startups typically launch with $50 million from the startup creator, Lila is backed by $200 million in committed seed financing from a syndicate that includes General Catalyst, March Capital, and a subsidiary of the Abu Dhabi Investment Authority, among others.
—Augustine Therapeutics closed €78 million (about $85 million) for drugs that block the enzyme HDAC6 to treat neuromuscular, neurodegenerative, and cardio-metabolic diseases. The Leuven, Belgium-based company will apply the new capital to Phase 1/2 testing of lead program AGT-100216, an experimental treatment for rare neuromuscular disorder Charcot-Marie Tooth disease. Novo Holdings and Jeito Capital co-led Augustine’s Series A financing.
—Osivax raised €10 million to continue development of OVX836, a broad-spectrum influenza vaccine candidate that has reached Phase 2b testing. The financing, which Lyon, France-based Osivax described as the first close of a Series B financing, added new investor Meiji Seika Pharma Co.
—Montara Therapeutics’ expanded its seed round by $20 million as the company advances its lead epilepsy program to the preclinical research that could support an investigational new drug application (IND). San Francisco-based Montara develops “BrainOnly” drugs, therapies that selectively target the central nervous system while blocking harmful peripheral effects. With the expanded financing, the round now totals $28 million.
—Ampersand Biomedicines revealed $65 million in financing to bring programs in immuno-oncology and immuno-inflammation into IND-enabling studies. The Flagship Pioneering-founded startup develops biologic drugs from a platform technology that identifies “addresses,” markers found on disease-driving targets but not on healthy cells. Eli Lilly joined Flagship in Ampersand’s Series B round, which comes two years after the drug discovery biotech’s launch.
—Arbor Biotechnologies raised $73.9 million to finance Phase 1/2 testing of its gene therapy for primary hyperoxaluria type 1, a rare enzyme deficiency. In vivo editing by the Arbor gene therapy, ABO-101, is intended to knock down expression of the HAO1 gene that drives the disease. Arch Venture Partners and TCGX led the Series C round for Cambridge-based Arbor, whose last financing was a $215 million Series B round in 2021.
—RegCell announced its relocation from Japan to Emeryville, California, as it progresses toward the clinic with an experimental regulatory T cell (Treg) treatment for autoimmune disease. The technology of RegCell generates epigenetically reprogrammed, antigen specific Tregs intended to restore immune tolerance. The company is financially backed by $8.5 million in seed financing and up to $37.3 million in non-dilutive funding from The Japan Agency for Medical Research and Development.
—Cambridge, U.K.-based Maxion Therapeutics revealed £58 million (about $72 million) in financing to reach human testing with MAX001, a potential treatment for a spectrum of inflammatory diseases such as atopic dermatitis and inflammatory bowel disease. The company’s drugs combine knottins, a type of protein, with antibodies. These “KnotBodies” are intended to modulate ion channels and G protein-coupled receptors. General Catalyst led Maxion’s Series A financing.
—Latigo Biotherapeutics closed $150 million in financing for its non-opioid pain drug pipeline. Latigo is in Phase 2 testing with lead program LTG-001, a blocker of a sodium channel called NaV1.8. That’s the same target as Vertex Pharmaceuticals’ recently approved non-opioid pain drug, Journavx. Blue Owl Capital led Latigo’s Series B round.
—Curevo Vaccine closed $110 million to continue clinical development of amezosvatein, an experimental shingles vaccine. In addition to extending the Phase 2 program to an additional 640 participants, the company aims to finalize dose selection for the planned Phase 3 study. Seattle-based Curevo also said Moncef Slaoui, the former GSK vaccine executive and chief scientific advisor to Operation Warp Speed, has been named chair of the company’s board of directors. Medixci led Curevo’s Series B financing.
—Insilico Medicine, a company that employs generative AI to drug discovery and development, raised $110 million for its pipeline and technology. Its most advanced drug candidate is rentosertib (formerly ISM001-055), a small molecule in mid-stage clinical development for idiopathic pulmonary fibrosis. A private equity fund of Value Partners Group led Insilico’s Series E financing.
—Vivace Therapeutics raised $35 million to advance a potentially first-in-class drug that addresses the Hippo pathway. Lead Vivace drug VT3989 blocks TEAD proteins in this pathway, which contribute to cancer when dysregulated. VT3989 is being readied for Phase 3 testing in mesothelioma. RA Capital Management led the San Mateo, California-based biotech’s Series D financing.
—Callio Therapeutics emerged with $187 million for its new twist on antibody drug conjugates (ADC) for cancer. Currently available ADCs carry a single drug payload. Callio, which splits its operations between Seattle and Singapore, is developing multi-payload ADCs. Frazier Life Sciences led Callio’s Series A financing, which it will use to achieve clinical proof of concept for a dual payload ADC targeting the cancer protein HER2. The target of a second Callio program is undisclosed.
—Garuda Therapeutics raised $50 million to support its R&D of off-the-shelf hematopoietic stem cell therapies for potential applications in a range of blood disorders. Investors in the Series A-1 round include OribiMed, Northpond Ventures, Cormorant Asset Management, and Japanese pharma company Kyowa Kirin.
—Cancer biotech Eikon Therapeutics closed $350 million in financing to support a pipeline that includes lead program EIK1001, which is in Phase 3 testing in advanced melanoma. This drug is a small molecule that activates TLR7/8 receptors to spark an immune response against cancer.
—Bambusa Therapeutics, startup developing bispecific antibodies applications in immunology and inflammation, said its Series A financing raised about $90 million. Lead program BBT001 is being readied for Phase 1 testing in dermatological conditions. New investor RA Capital Management led the Boston-based biotech’s financing.
—Abcuro raised $200 million to support ulviprubart, a drug in Phase 2/3 testing for inclusion body myositis, an autoimmune disease in which T cells chronically attack muscle tissue. The drug is an antibody that blocks a target called KLRG1. New Enterprise Associates led the Newton, Massachusetts-based biotech’s Series C financing.
—Newleos Therapeutics unveiled clinical-stage neuropsychiatric drug candidates licensed from Roche and backed by $93.5 million in funding. Lead Newleos program NTX-1955 target the GABA A receptor subunit gamma 1 as a potential treatment for anxiety. Newleos plans to advance this small molecule to proof-of-concept clinical testing in generalized anxiety disorder. Goldman Sachs Alternatives led Newleos’s Series A financing.
