More well thought out work can be found at — https://axial.substack.com/
Axial partners with great founders and inventors. We invest in early-stage life sciences companies often when they are no more than an idea. We are fanatical about helping the rare inventor who is compelled to build their own enduring business. If you or someone you know has a great idea or company in life sciences, Axial would be excited to get to know you and possibly invest in your vision and company . We are excited to be in business with you - email us at info@axialvc.com
Life Sciences Financings and Commentary #31 - October 24, 2020 - October 30, 2020
Financings
Number of deals: 19 & Total capital invested: $978M
- Apeel Sciences raised $30M from International Finance Corp, Temasek, and Astanor Ventures to develop biocompatible coatings to preserve fruits and food.
- Azura Ophthalmics raised $20M from OrbiMed, TPG Biotech among others to develop new medicines for Meibomian gland dysfunction (MGD) and related eye diseases - https://www.bioworld.com/articles/499342-azura-ophthalmics-raises-20m-series-c-for-registration-study-in-meibomian-gland-dysfunction?v=preview
- Benson Hill raised $150K from GV and Wheatsheaf Group to combine their gene editing technologies with their software platform to connect the seed to suppliers to the consumer. The business model seems pretty similar to Indigo.
- Curve Health raised $6M led by Lightspeed Venture Partners to build software connecting senior care facilities with hospital networks. Pretty important problem especially with COVID at-risk patients.
- Gauss raised $10M led by 4100 Group to develop their computer vision product to detect hemorrhages as well as a COVID-19 antigen test.
- Gracell Biotechnologies raised $100M from OrbiMed, Wellington, Vivo Capital, Temasek among others to develop CAR-T cell therapies focused in China.
- Homethrive raised $18M with 7wireVentures and Pitango HealthTech co-leading the round to build software for elder care and ensuring older adults can be messaged by providers.
- Honor raised $140M with Baillie Gifford and T. Rowe Price co-leading the round to scale the company’s elderly in-home network.
- Immuneonco raised $25M led by Lilly Asia Ventures to develop its pipeline of immunotherapies with a particular focus on CD47.
- LabGenius raised $15M led by Atomico to scale the company’s machine learning platform for biologics. Congrats James.
- LightDeck Diagnostics raised $11M from Incubic, Entrada, and Boulder Ventures to develop their PoC device for COVID-19 testing.
- Longboard Pharmaceuticals raised $56M from Farallon Capital, Cormorant Asset Management, HBM Healthcare Investments among others to spin out of Arena Pharmaceuticals and develop new medicines for CNS diseases - https://www.prnewswire.com/news-releases/arena-pharmaceuticals-announces-launch-of-longboard-pharmaceuticals-with-56m-financing-building-a-novel-neuroscience-drug-development-company-301161402.html
- One Health Company raised $10M from Polaris Partners and Borealis Ventures to develop the company’s FidoCure product to bring NGS-informed cancer treatments (similar to Foundation Medicines) to dogs. Congrats Christina - https://www.prnewswire.com/news-releases/one-health-company-secures-10m-to-expand-access-to-precision-cancer-treatment-for-dogs-301163307.html
- Primmune Therapeutics raised $27.4M with Polaris Partners and CAM Capital co-leading the round to develop small molecules targeting TLR7 in oncology and viral diseases.
- Q32 Bio raised $60M co-led by OrbiMed and Acorn Bioventures to develop biologics against IL-7R and complement to restore immune tolerance in patients.
- Scorpion Therapeutics raised $108M from Atlas Venture, Vida Ventures, and Omega Funds to develop targeted cancer therapies. Maybe similar to Blueprint or Loxo? - https://www.businesswire.com/news/home/20201026005156/en/Scorpion-Therapeutics-Launches-with-108-Million-to-Advance-Precision-Oncology-2.0
- SidekickHealth raised $20M led by Wellington and Asabys Partners to develop their gamified digital health product for chronic disease. Virta Health is tough to beat - https://techcrunch.com/2020/10/28/sidekick-health-scores-20m-for-its-gamified-digital-care-platform/
- Viridian Therapeutics was acquired by miRagen Therapeutics raising $91M led by Fairmont Funds in a transaction that seems like a reverse merger. Viridian’s lead asset is a clinical-stage anti-IGF-1R monoclonal antibody for thyroid eye disease (TED) - https://www.globenewswire.com/news-release/2020/10/28/2115807/0/en/miRagen-Therapeutics-Inc-Announces-Acquisition-of-Viridian-Therapeutics-Inc.html
- WHOOP raised $100M led by IVP to scale their subscription-based health monitoring watch. I remember meeting the founders when they were Bobo. Great work.
Exits
Number of exits: 7 & Total exit value: Over $8B
- AskBio was acquired by Bayer for $2B upfront and another $2B in milestones to bring on board AskBio’s fully-integrated AAV gene therapy platform. I wouldn’t have thought that AskBio would ever be acquired; maybe they spin out down the line? - https://www.bioworld.com/articles/499369-bayer-expands-into-gene-therapy-buying-asklepios-for-up-to-4b
- Base Genomics was acquired by Exact Sciences in a deal worth $410M to acquired Base’s DNA methylation detection technology - http://www.pharmatimes.com/news/oxford_start-up_base_genomics_acquired_by_exact_sciences_1355244
- Simcere raised ~$460M in an IPO on the Hong Kong Stock Exchange to build a fully-integrated drug company in China and develop a pipeline focused on oncology, CNS diseases, and autoimmune diseases - https://www.bioworld.com/articles/499472-simcere-launches-460m-ipo-in-hong-kong-shares-drops-24
- Sotera Health filed for a $100M IPO to scale their 3 pronged business around lab testing, Cobalt-60, and healthcare sterilization - https://www.sec.gov/Archives/edgar/data/1822479/000119312520275568/d93452ds1.htm
- Synteract was acquired by Syneos Health to further bolster that CRO business - https://www.fiercebiotech.com/cro/syneos-health-snaps-up-late-stage-cro-synteract-aims-to-drive-growth-among-emerging-biopharmas
- Thrive Earlier Detection was also acquired by Exact Sciences (probably in response to Illumina internalizing GRAIL) for $2.15B in cash and stock to take on Thrive’s liquid biopsy product, CancerSEEK. Congrats Zavain - https://www.biospace.com/article/releases/exact-sciences-to-acquire-thrive-earlier-detection-becoming-a-leader-in-blood-based-multi-cancer-screening/
- Vedere Bio was acquired by Norvartis for $150M up front and $130M in milestones to gain access to Vedere’s optogenetic technology and preclinical pipeline focused on vision loss - https://www.fiercebiotech.com/biotech/novartis-drops-150m-stealthy-gene-therapy-startup
Deals
Number of deals: 5 & Total deal value: Over $3B
- Apellis announced a deal with Sobi AB in a deal worth up to $1.25B to develop systemic pegcetacoplan, a C3 therapy for treating several rare diseases in hematology, nephrology and neurology - https://www.bioworld.com/articles/499480-apellis-and-sobi-strike-a-125b-deal-in-rare-disease-collaboration
- Cogstate sold global rights of their cognitive function tests to Eisai for $45M - https://www.fiercebiotech.com/medtech/eisai-doubles-down-cogstate-digital-cognitive-tool-pact
- Cstone Pharmaceuticals entered into a deal with EQRx to out-license two anti-PD-L1 antibodies, sugemalimab and CS-1003, outside China for $150M upfront and $1.15M in milestones. Cstone could also receive tiered royalties if the products reach market. More biologics will come from China to the US and more cell/gene therapies will come from the US to China in similar deals - https://www.fiercebiotech.com/biotech/eqrx-grabs-2-late-stage-checkpoint-inhibitors-from-cstone-150m-deal
- Solid Biosciences announced a deal with Ultragenyx to develop and commercialize new gene therapies for Duchenne muscular dystrophy with Ultragentx investing $40M into Solid - https://www.bioworld.com/articles/499358-ultragenyx-and-solid-firm-up-duchenne-collaboration?v=preview
- Springworks Therapeutics sold global rights to their fatty acid amide hydrolase (FAAH) inhibitor to treat PTSD to Jazz Pharmaceuticals for an upfront payment of $35M and milestones up to $375M - https://www.prnewswire.com/news-releases/jazz-pharmaceuticals-acquires-springworks-therapeutics-faah-inhibitor-program-301159303.html
I used to play football a long time ago - I had some decent success mainly because of my teammates with some of them playing in the NFL. Every practice, every game was an existential fight. I’m not that athletic so every year some 6’4 monster would show up trying to take my spot. Similarly, all of these companies are fighting for their right to exist whether they raised $1M or $100M. Building a great business requires passion and focus. A really powerful and useful framework to lead groups of people and win was developed by Bill Walsh -