Ayala Pharmaceuticals Secures $30 Million Series B Financing Led by Novartis to Advance Targeted Therapies for Hereditary Cancers

VCBeat (WeChat Official Account: vcbeat) has learned that on May 28, biopharmaceutical company Ayala Pharmaceuticals announced the completion of a $30 million Series B financing round. The round was led by Novartis, with participation from the SBI Japan-Israel Innovation Fund and existing investors Israel Biotech Fund, aMoon Fund, and Harel Insurance & Finance Group.

Ayala Pharmaceuticals is a clinical-stage biopharmaceutical company founded in 2017 in Rehovot, Israel, dedicated to the research and development of γ-secretase inhibitors (GSIs) for the treatment of patients with hereditary cancers driven by aberrant activation of the Notch signaling pathway.

Under the leadership of Dr. Roni Mamluk, Chief Executive Officer, Ayala Pharmaceuticals is conducting separate studies on its drug candidates AL101 and AL102 for the treatment of solid tumors and hematologic malignancies.

AL101 is a Notch gene mutation inhibitor for oncology indications, specifically targeting γ-secretase inhibition. The Notch signaling pathway plays a critical role in the tumorigenesis of various solid and hematologic malignancies. Following ligand binding to Notch receptors, an essential step in Notch receptor activation is cleavage by γ-secretase, which releases the intracellular domain of Notch (NICD). AL101 is currently in Phase 2 clinical studies in patients with adenoid cystic carcinoma (ACC) harboring activating mutations in Notch genes.

In December 2018, Ayala and Novartis entered into a licensing agreement for AL102 for the treatment of multiple myeloma. Under the agreement, Ayala received a $10 million equity investment from Novartis, while Novartis obtained rights to develop, conduct clinical trials, secure regulatory approvals, and commercialize AL102, as well as tiered royalties on net sales of AL102. Ayala retained global licensing rights for all other indications and is evaluating AL102 as an inhibitor of the Notch pathway in other hematologic cancers.

Novartis was founded in Switzerland in 1996 and is one of the world's top three pharmaceutical companies, engaged in the global research, development, manufacturing, and sales of a wide range of pharmaceutical products.

The SBI Japan-Israel Innovation Fund is a venture capital firm focused on the biopharmaceutical sector. Established in early 2017 through a collaboration between Japan’s SBI Holdings and Vertex, the fund leverages the strengths of its parent entities. SBI Holdings is a leading Japanese financial services group, while Vertex is a global venture capital firm managing $700 million in assets.

Israel Biotech Fund, headquartered in Israel, primarily invests in biotechnology companies developing drugs at the clinical stage or approaching it. The firm comprises 25 prominent industry leaders and professionals.

aMoon Fund, established in Israel in 2016, is a leading venture capital fund focused on health tech and life sciences.

Harel Insurance Investments & Financial Services, established in Tel Aviv, Israel in 1982, is the largest insurance and financial group in Israel.

(Compiled by: Li Chengping)