USA—Biotechnology startup Third Arc Bio, founded two years ago and led by former J&J executives, has successfully raised US$165 million in a Series A funding round to advance its development of multifunctional antibodies to treat cancer and immune diseases.
The Series A funding round for Third Arc Bio attracted more investor interest than anticipated. Vida Ventures led the financing round, which also saw Cormorant Asset Management and Hillhouse Investment participation.
Omega Funds, which initially seeded Third Arc in 2022, and several other venture funds also invested.
The company plans to advance multiple programs into clinical testing next year. The company’s drugs are designed to work by engaging T cells and immune cells involved in cancer and autoimmune diseases.
Over the past two years, the company has quietly conducted research that has drawn significant investment as drugmakers increasingly explore ways to harness the immune system to treat diseases.
While Third Arc has not disclosed many details about its specific plans, it is known that its focus is on developing antibodies that can engage T cells.
This approach is promising for cancer treatment, where aiding T cells in locating and destroying tumor cells can be a powerful strategy.
Similarly, in autoimmune conditions, where the immune system attacks the body, T cells can be redirected to deplete the harmful immune cells.
Commenting on this development, Peter Lebowitz, MD, PhD, Chief Executive Officer of Third Arc Bio, noted that with a robust discovery engine and a stellar development team, the company is well-positioned to deliver best-in-class therapies and regimens.
He expressed gratitude for the strong support from Omega Funds and their investor syndicate, who believe in the value of their precise and targeted approach to modulating the immune response with advanced biologics.
In a statement, Francesco Draetta, managing partner at Omega Funds, highlighted that in less than three years, they have helped realize the scientific vision of Third Arc Bio’s founding team by pairing the latest innovation in antibody development with the pursuit of high-impact targets in oncology and autoimmunity.
Arjun Goyal, MD, Co-Founder and Managing Director of Vida Ventures, added that the Third Arc Bio team has an outstanding track record of developing impactful medicines, including multiple approved drugs that have redefined the standard of care in oncology and immunology.
Goyal further remarked on Third Arc’s leading portfolio of biologics, its plans to file multiple Investigational New Drug (IND) applications with the FDA next year, and its extraordinary team of drug developers.
He is confident that the company is set to create innovative new treatments leveraging T-cell biology for patients worldwide.
Peter Lebowitz leads the company, having previously headed J&J’s oncology research and development for many years. He stepped down from his role to join Third Arc as CEO in January.
Sanjaya Singh, co-inventor of the immune disease drug Skyrizi and former global head of J&J’s Janssen Biotherapeutics unit, complements the leadership team as the startup’s chief scientific officer. Another former J&J executive, Joe Erhardt, is the company’s chief operating officer.
With this Series A funding, Third Arc Bio joins the ranks of biotech companies that have secured substantial investment in T cell engagement research.
Other companies, such as Santa Ana Therapeutics, which raised US$168 million in June, and Clasp Therapeutics, which secured US$150 million in March, are also exploring similar approaches.
Additionally, drugmakers are exploring the potential of CAR-T cell therapies, which are already established for cancer treatment and autoimmune diseases such as lupus.
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