Our quarterly biopharma therapeutics and platforms venture and IPOs review showcases substantial activity and notable investments, underscoring the sector’s growth and innovation through some prominent deals. Hercules CM NewCo secured a $400 million investment in May 2024 from Bain Capital Life Sciences, RTW Investments, Atlas Venture, and Lyra Capital. The funds will support the development of three weight loss drugs, with HRS-7535 in phase 2 trials for Type 2 diabetes and obesity and HRS-9531 and HRS-4729 in various stages of development. AltruBio raised $225 million in a series B in May 2024 to advance its focus on immune disease drugs, specifically a mid-stage candidate for ulcerative colitis. Zenas BioPharma closed a $200 million series C financing in the same month to further its inflammation and immunology therapies, with its lead candidate obexelimab in advanced clinical trials for multiple conditions. On the IPO front, Alumis raised $210 million in June 2024 despite falling short of its target, with plans to develop ESK-001, a TYK2 inhibitor for immunological conditions. Rapport Therapeutics, supported by Johnson & Johnson’s venture capital arm, raised $154 million in its May 2024 IPO to advance small-molecule medicines for central nervous system disorders, including RAP-219 for focal epilepsy, peripheral neuropathic pain, and bipolar disorder.
Biopharma Therapeutics and Platforms Venture Funding
During H1 2024, the biopharma therapeutics and platforms saw dynamic venture activity, with 215 funding rounds totaling $14.1 billion. Q2 alone had 111 rounds, raising $7.6 billion, compared to Q1’s 104 rounds and $6.5 billion. This is a quarter-over-quarter increase of 7 rounds and $1.1 billion.
Biopharma Therapeutics and Platforms Venture Totals by Series
During H1 2024, biopharma therapeutics and platforms venture funding emerged strong. Q2 had 111 rounds, raising $7.6 billion from Q1’s 104 rounds and $6.5 billion. By series, Q2 saw $300 million in seed, $2.5 billion in series A, $2.1 billion in series B, $1.2 billion in series C, $500 million in series D and beyond, and $1.1 billion in unspecified private rounds.
Q1 had $200 million in seed, $2.1 billion in series A, $1.6 billion in series B, $1.1 billion in series C, $700 million in series D and beyond, and $700 million in unspecified private rounds. Combined, H1 2024 saw 215 rounds totaling $14.1 billion.
Â
Top Biopharma Therapeutics Areas for Venture – 2023-2024 YTD
From 2023 to Q2 2024, venture funding in therapeutic areas was robust. Cancer led with 247 funding rounds, raising $13.8 billion. Neurologic followed with 86 rounds totaling $4 billion. Endocrine and metabolic secured $2.9 billion from 38 rounds, while autoimmune saw 41 rounds, raising $2.8 billion. Pulmonary conditions attracted $2.1 billion from 19 rounds, and ophthalmic had 34 rounds, raising $1.9 billion. Dermatologic conditions raised $1.8 billion through 15 rounds, and inflammation garnered $1.6 billion from 25 rounds. Other areas, including infectious, cardiovascular, musculoskeletal, renal, hematologic, gastrointestinal, hepatic, and genitourinary conditions, collectively raised $7.5 billion through 147 rounds.
Top Biopharma Technologies for Venture – 2023-2024 YTD
From 2023 to Q2 2024, venture funding in biopharma therapeutic technologies remained strong. Small molecules led with 205 rounds, raising $11.2 billion. Biologics, antibodies, DNA, RNA, and proteins followed with 200 rounds, securing $10.8 billion. Immunotherapy saw 38 rounds, amounting to $2.4 billion, and cell therapy had 56 rounds, raising $2.4 billion. Gene therapy and vectors attracted $1.7 billion from 25 rounds, while gene editing/CRISPR raised $710 million through 10 rounds. In total, 534 funding rounds raised $29.1 billion.
Top Biopharma Therapeutics and Platforms Ventures – Q2 2024
Hercules CM NewCo – $400M Investment – May 2024
Hercules CM NewCo secured $400 million from Bain Capital Life Sciences, RTW Investments, Atlas Venture, and Lyra Capital. The company licensed three weight loss drugs from Jiangsu Hengrui Pharmaceuticals for $110 million and a 20% equity stake, with potential milestone payments up to $5.9 billion. The lead drug, HRS-7535, is in phase 2 trials for Type 2 diabetes and obesity. HRS-9531 is in mid-stage studies targeting GLP-1 and GIP hormones, while HRS-4729 is in preclinical development.
AltruBio – Series B – $225M – May 2024
AltruBio raised $225 million in a series B led by BVF Partners, with RA Capital Management and Cormorant Asset Management participating. Initially focused on cancer drugs under the name AbGenomics Holdings, AltruBio rebranded in 2020 to concentrate on immune disease drugs. The company raised $63 million in 2021 and now has a mid-stage drug candidate for ulcerative colitis.
Zenas BioPharma – Series C – $200M – May 2024
Zenas BioPharma, focused on inflammation and immunology therapies, closed a $200 million series C led by SR One, NEA, Norwest Venture Partners, and Delos Capital, with contributions from Enavate Sciences, Longitude Capital, Federated Hermes Kaufmann Funds, and Arrowmark Partners. The funds will support the clinical development of its lead candidate, obexelimab, a bifunctional monoclonal antibody targeting CD19 and FcγRIIb. Obexelimab is currently in a phase 3 trial for IGg4-related disease, with additional phase 2 trials planned for Multiple Sclerosis and Systemic Lupus Erythematosus and an ongoing phase 2 trial for Warm Autoimmune Hemolytic Anemia.
Biopharma Therapeutics and Platforms IPO Activity – Global Listings
During Q2 2024, IPO activity in biopharma therapeutics and platforms decreased. Q2 had 3 IPOs raising $500 million, compared to Q1’s 8 IPOs, which raised $3.9 billion. Overall, 11 IPOs in H1 2024 raised $4.4 billion.
Â
Biopharma Therapeutics and Platforms IPOs, Follow-on, and PIPE Issuances
In Q2 2024, there were 70 financings totaling $11 billion, including 3 IPOs ($500 million), 28 follow-ons, and 39 PIPEs. This contrasts with Q1’s higher activity of 115 financings, which included 8 IPOs ($3.9 billion), 50 follow-ons, and 57 PIPEs, totaling $20.2 billion. While Q1 had more IPOs and overall financing, Q2 saw a decline in IPOs but an increase in follow-ons and PIPEs.
Top Biopharma Therapeutics and Platforms IPOs – Q2 2024
Alumis – IPO – $210M – June 2024
Alumis raised $210 million in one of the largest IPOs of the year despite missing its $283 million target. The company sold approximately 13 million shares at the lower end of its $16-$18 range, with an additional $40 million from a private stock sale to AyurMaya Capital Management. The company is developing ESK-001, a TYK2 inhibitor for immunological conditions, which is claimed to be more potent and selective than Bristol Myers Squibb’s FDA-approved Sotyktu. Alumis faces competition from Takeda, Sudo Biosciences, and Priovant Therapeutics, who are also developing next-generation TYK2 inhibitors.
Rapport Therapeutics – IPO – $154M – May 2024
Rapport Therapeutics raised $154 million in its U.S. IPO at a valuation of approximately $601 million, selling 8 million shares at $17 each. Johnson & Johnson’s venture capital arm supports Rapport in developing small-molecule medicines for central nervous system disorders. The proceeds will advance RAP-219 into proof-of-concept trials for focal epilepsy, peripheral neuropathic pain, and bipolar disorder. The TARPg8 AMPAR program has completed two phase 1 trials.
