Cyllene Therapeutics secures US$37.8 M to advance gene therapy for severe neurogenic bladder disorders

FRANCE—Cyllene Therapeutics has raised €33 million (US$37.75 million) in a Series C funding round to accelerate clinical development of its lead gene therapy candidate, EG110A, and to expand its broader pipeline of DNA medicines for neurological diseases.

The funding comes as investor confidence in the gene therapy sector continues to recover after several challenging years.

The financing round was co-led by M Ventures, the venture capital arm of Merck KGaA, and GordonMD Global Investments.

Existing investors, including Bpifrance Investissement through its InnoBio 3 Fund, Andera Partners, and Lamond Ventures, also participated.

The company said the proceeds will support the continued development of EG110A while strengthening its proprietary HERMES platform for targeted DNA delivery.

Company adopts new identity

Alongside the financing, the Paris-based biotechnology company announced its rebranding from EG 427 to Cyllene Therapeutics.

The new name is inspired by Mount Cyllene, the mythical birthplace of the Greek god Hermes, reflecting the company’s HERMES technology platform.

According to Cyllene, the rebranding marks its transition into a late-stage clinical biotechnology company with a growing international presence.

The HERMES platform uses a modified, non-replicating herpes simplex virus type 1 (HSV-1) to deliver therapeutic DNA directly to target cells.

Although the natural virus causes herpes infections, the engineered version cannot replicate and is designed to safely transport genetic medicines to affected tissues.

Lead programme moves toward late-stage trials

Cyllene’s most advanced candidate, EG110A, targets neurogenic detrusor overactivity, a condition that causes involuntary bladder contractions in people with neurological disorders such as spinal cord injury and multiple sclerosis.

The therapy has been engineered to produce a fragment of botulinum toxin within bladder sensory neurons while preserving normal muscle and motor nerve function.

Early findings from the ongoing Phase Ib/IIa clinical trial (NCT06596291) showed that the treatment reduced urinary incontinence episodes by more than 88%.

The company plans to begin a Phase IIb/III trial in 2027 and expand the programme into overactive bladder and other neurological conditions.

Chief Executive Officer Philippe Chambon said the new financing will help advance EG110A into later-stage clinical testing while broadening the HERMES pipeline.

He added that the early clinical data reinforce the company’s belief that localized DNA medicines can deliver durable benefits with a favourable safety profile in chronic neurological diseases.

Beyond EG110A, the company’s website indicates that programmes targeting overactive bladder and interstitial cystitis are progressing through investigational new drug-enabling studies.

Additional research is also underway for undisclosed neuromuscular, sensory, and neurodegenerative disorders.

Gene therapy investment regains momentum

The fundraising reflects renewed investor interest in gene therapy after the sector experienced slower investment because of manufacturing, reimbursement, and commercialisation challenges.

Several pharmaceutical companies previously reduced their exposure to gene therapy, but funding activity has strengthened in 2026.

Earlier this year, Eli Lilly acquired hearing-loss gene therapy developer Seamless Therapeutics for US$1.12 billion.

Meanwhile, Scribe Therapeutics is preparing for an initial public offering.

On the same day that Cyllene announced its financing, MeiraGTx also secured an investment package worth up to US$400 million from Oberland Capital to support the development and commercialization of its late-stage gene therapy programmes for inherited retinal disease and radiation-induced dry mouth.