RayzeBio Secures $160 Million Series D Financing to Advance Targeted Radiopharmaceuticals for Oncology

RayzeBio Announces $160 Million Series D Financing and Clinical Development of Targeted Radiopharmaceutical RYZ-101Recently, U.S. biotechnology company RayzeBio announced the completion of a $160 million Series D financing round. The round was co-led by Viking Global Investors, Sofinnova Investments, and Wellington Management, with participation from Ally Bridge Group, Sands Capital, Laurion Capital Management, Soleus Capital, and others. Concurrently, RayzeBio disclosed that its targeted radiopharmaceutical, RYZ-101, has entered the clinical development stage.

Since commencing operations in August 2020, RayzeBio has been dedicated to advancing the development of radiopharmaceuticals.。On October 14, 2020, RayzeBio raised $45 million in its Series A financing round, allocating the funds to develop drugs targeting clinically validated cancer targets. On December 8, 2020, the company announced a $105 million financing round to support clinical programs and expand its San Diego headquarters. On June 15, 2021, RayzeBio announced a $108 million Series C financing round, enabling the company to fully dedicate itself to its R&D pipeline and distinguish itself in the radiopharmaceutical sector.

With this latest funding round, RayzeBio has raised a total of $418 million in the two-plus years since its inception.

RayzeBio Funding History

Image source: VCBeat

How did this startup successfully evolve into a comprehensive radiopharmaceutical company within just two years, achieving several major value inflection points in both clinical development and operations?

Since its founding in 2020, RayzeBio has focused on research into targeted radioisotopes, aiming to improve cancer treatment outcomes.RayzeBio is developing novel drug conjugates targeting clinically validated solid tumor targets, thereby delivering therapeutic radioisotopes such as the alpha emitter Actinium-225 (Ac-225).

Compared with existing beta-particle therapies, Ac-225 offers superior efficacy. However, innovation also brings greater challenges.

As a pioneer, RayzeBio is goal-oriented and has established its R&D pathway from three aspects:

Select clinically validated solid tumor targets.Many tumor targets have been clinically validated but have not yet been investigated as radiopharmaceuticals. RayzeBio systematically evaluates and identifies biologically relevant, tumor-specific targets suitable for targeted radiotherapy.

Establish stringent criteria for selecting adhesives.First, molecular binders with extremely high affinity and specificity are required for the delivery of radioisotopes to minimize off-target effects as much as possible. Meanwhile, the binders should be small and flexible to achieve deep tumor penetration. Additionally, to exert therapeutic efficacy during blood clearance, the binders must also possess tunability.

Finally, RayzeBio believes that multiple therapeutic radioisotopes may serve as effective therapeutic agents.As an alpha-emitting radionuclide, Actinium-225 possesses high energy density and can exert its effects within a range of only a few cell widths. Over such short distances, radiotherapy can selectively target critical cancer cells, thereby minimizing adverse effects on adjacent healthy tissues.

Ken Song, President and CEO of RayzeBio, possesses a profound academic background.He completed his internal medicine training and earned his M.D. at the University of California, San Francisco, and subsequently specialized in gastroenterology and hepatology at the University of Washington.

Founder, President & CEO Ken Song

Image source: RayzeBio official website

In addition,Ken has accumulated extensive experience in product development, global commercialization, and venture capital.From 2010 to 2016, Ken, as a co-founder of Ariosa Diagnostics (acquired by Roche), drove the commercialization of the “Harmony Non-Invasive Prenatal Test” in over 100 countries worldwide.

From 2016 to 2020, he served as President and CEO of Metacrine, where he led the team through preclinical research to mid-stage clinical development and spearheaded the company’s initial public offering. Prior to becoming an operator and entrepreneur, Ken held positions at Venrock and McKinsey & Company, working in venture capital and consulting, respectively.

Certainly, while individual competence is one of the qualities required of an excellent leader, the ability to identify and effectively leverage talent is the key to building a high-performing team.

RayzeBio attracts top talent from various industries with its sincere and inclusive work environment and a team culture driven by a strong sense of mission., including Chief Medical Officer Susan Moran, who formerly taught at Harvard Medical School; Arvind Kush, former Managing Director of the Healthcare Investment Banking Team at BofA Securities; Kimberly Ma, who participated in the development of Pfizer’s oncology drugs; Aubrey Haddach, J.D. from the University of San Diego School of Law; and Gary G. Li, Ph.D. in Biomedical Sciences from the University of Pennsylvania. Each of them holds significant influence in fields such as biomedical research, oncology product development, clinical operations, intellectual property, strategy, and financing.

To this day, the team continues to recruit top talent. On April 25, 2022, RayzeBio appointed Dr. Angie You, former CEO of Amunix Pharmaceuticals, to its Board of Directors, whose professional expertise and valuable experience will inject new vitality into RayzeBio.

For decades, scientists have been researching targeted radiation therapy, but progress has been hindered by various failures. Ken identified new opportunities in this nearly abandoned field and decided to develop targeted cancer therapies using radioactive isotopes, building a platform capable of producing many related drugs.

On September 13, 2022, concurrently with securing its Series D financing, RayzeBio announced significant progress in the clinical development of its flagship product, RYZ-101.RYZ-101 is a targeted radiopharmaceutical that enables the application of Actinium-225 in clinical trials for multiple solid tumor indications.

Actinium-225 is a highly efficient radioactive isotope with a half-life of 10 days, suitable for targeted alpha therapy. Clinical trials have demonstrated that radiopharmaceuticals containing Actinium-225 can be used to treat various types of cancer, such as leukemia, prostate cancer, and primary tumors.

Currently, clinical trials of RYZ-101 for the treatment of certain tumor patients—specifically, patients with SSTR-positive gastroenteropancreatic neuroendocrine tumors (GEP-NETs) previously treated with Lu-177-based somatostatin analog therapy, as well as patients with extensive-stage small cell lung cancer—are under evaluation. Its efficacy will be compared against the standard of care for patients with unresectable, advanced, SSTR-positive, well-differentiated GEP-NETs.

The Phase 1b clinical trial of RYZ-101 is currently enrolling patients with neuroendocrine tumors. If the drug demonstrates favorable safety, tolerability, and pharmacodynamic profiles in Phase I trials, it may proceed directly to Phase III. The Phase III study could commence as early as 2023.

If all goes well, RYZ-101 is poised to become the first approved Ac-225 radiopharmaceutical therapy in the industry.

Multi-level collaboration has always been indispensable on the path to progress and expansion.

To obtain comprehensive technical support,RayzeBio has established strong collaborations with numerous clinical and scientific advisors., including Dr. Carolyn Bertozzi, Professor of Chemistry and Systems Biology and of Radiology at Stanford University and Investigator at the Howard Hughes Medical Institute; Dr. Thomas Hope, Associate Clinical Professor in the Department of Radiology and Biomedical Imaging and Director of Molecular Therapeutics at the University of California, San Francisco; Dr. George Sgouros, Professor and Director of the Division of Radiation Physics in the Department of Radiology at Johns Hopkins University; and Dr. Wolfgang Weber, Professor and Chair of the Department of Nuclear Medicine at the Technical University of Munich in Germany.

Meanwhile, RayzeBio is actively pursuing collaborations in the commercialization sector to achieve complementary resource advantages.

On August 4, 2020, RayzeBio entered into a strategic partnership with PeptiDream. PeptiDream is a biopharmaceutical company dedicated to the discovery and development of non-standard peptide therapeutics. The two companies agreed to pursue multiple programs targeting shared objectives to discover and develop peptide radioisotope conjugates for use as therapeutic agents.

On June 28, 2021, RayzeBio announced a collaboration with Nimble Therapeutics. Nimble Therapeutics integrates leading peptide synthesis, bioinformatics and cheminformatics tools, custom screening and validation assays, and accelerated medicinal chemistry. Under the agreement, RayzeBio holds exclusive rights to develop and commercialize peptides discovered through the collaboration.

On July 12, 2021, RayzeBio announced a strategic research collaboration with 48Hour Discovery to discover and develop novel peptide-based radiopharmaceuticals for the treatment of cancer. 48Hour Discovery (48HD) is a Canadian biotechnology company whose gene-encoded platform technology and cloud-based discovery management enable the rapid identification of drug candidates within billion-scale macrocyclic therapeutic spaces. Under this collaboration, 48Hour Discovery will identify potent ligands for a series of targets selected by RayzeBio.

With such a comprehensive strategic layout, RayzeBio faces the future with clarity and confidence.To further expand their industry influence, they have now formulated a clear plan:

• Invest in and guarantee the commercial-scale manufacturing of radioisotope supplies

• Constructing a 28,000-square-foot advanced R&D facility in San Diego to enhance end-to-end capabilities for radiopharmaceutical discovery

• Completed over 200 in vivo studies, identifying novel drug candidates capable of delivering therapeutic radioisotopes to tumor-associated antigens.

• Signed a licensing agreement with Ablaze Pharmaceuticals, a biotechnology company focused on the development and commercialization of radiopharmaceuticals in China

  
  

Breakthrough technologies, a highly efficient team, and meticulous planning have enabled RayzeBio to make steady strides in the field of radiopharmaceuticals, earning the trust of investors and partners. In the near future, its flagship drug, RYZ-101, may become a significant therapeutic option for cancer treatment. With both strength and ambition, RayzeBio is poised to benefit more patients.