Connect Biopharma Secures $115 Million Series C Financing to Advance Clinical Development of Novel Therapies for Autoimmune Diseases

VCBeat has learned that on August 24, 2020, Connect Biopharma (“Connect”) announced the completion of a $115 million Series C financing round. The round was led by RA Capital Management, with participation from Lilly Asia Ventures, Boxer Capital, and HBM Healthcare Investments, while existing investor Qiming Venture Partners continued to participate as a co-investor. With the closing of this financing round, Dr. Derek DiRocco, Executive Director at RA Capital Management, will join Connect’s Board of Directors as a new board member.

The proceeds from this financing round will be primarily used to advance the clinical development of multiple products, mainly includingCBP-201、CBP-307andCBP-174Three Major Innovative Drugs Under Development.

Regarding these innovative drugs under development, Connect Biopharma achieved several important milestones in the first half of 2020: investigational new drugsCBP-201Exciting efficacy data were achieved in the Phase 1b clinical study of moderate-to-severe atopic dermatitis (AD), and despite the challenges posed by the COVID-19 pandemic, the global Phase 2b clinical trial for this product’s AD indication was successfully initiated; another investigational new drug from the company with broad market potential in autoimmune diseases,CBP-307global intellectual property protection has been strengthened; in addition, the company also plans to in the fourth quarter of this yearCBP-174This small-molecule drug for the treatment of pruritus has advanced to Phase I clinical trials.

The funds from this round of financing will be used to focus on advancingCBP-201Phase 2 clinical trials for the treatment of AD, andCBP-307Phase 2 clinical trials for the treatment of ulcerative colitis (UC) and clinical development for the treatment of moderate-to-severe Crohn’s disease (CD); it will also be used to expandCBP-201Clinical development of new indications, andCBP-201andCBP-307Production of samples for the future Phase 3 clinical trials of two new drug candidates. Additionally, a portion of the funds from this financing round will be used to advance other new products into clinical-stage research, including advancingCBP-174, a first-in-human (Phase I) clinical study of a globally first-in-class small-molecule drug for the treatment of pruritus.

“Connect Biopharma is dedicated to developing best-in-class innovative medicines for the treatment of autoimmune diseases, with the aim of benefiting patients worldwide. The successful completion of this financing round has attracted investment from multiple top-tier international institutions across the United States, Europe, and Asia, reflecting strong confidence from the investment community in Connect Biopharma’s novel drug pipeline, R&D technology platform, and development strategy!”Dr. Wei Zheng, Co-Founder and CEO of Connect Biopharma“Believing that by leveraging Connect Biopharma’s continuously expanding proprietary product pipeline, unique technology platforms, and expertise, alongside the strong capital support from world-class investors, we will more effectively achieve the company’s near-term goals and remain steadfast in our vision to improve the quality of life for patients with inflammatory and autoimmune diseases.”

Dr. Derek DiRocco, Executive Director at RA Capital Management and former faculty member at Harvard Medical School“He stated, ‘There is a substantial unmet medical need globally for inflammatory and autoimmune diseases. Connect Biopharma not only effectively achieves its established goals but also boasts an exciting pipeline of novel drug candidates. We are delighted to partner with such an outstanding company. Connect Biopharma’s proprietary autoimmune disease technology platform can significantly enhance the development efficiency of new therapeutics for various severe inflammatory and autoimmune conditions. We are deeply impressed by the speed with which the company has advanced the CBP-201 program into Phase II clinical trials, as well as the high-quality clinical data obtained to date. We believe that Connect Biopharma’s pipeline holds the potential to yield more blockbusters in the future. I look forward to collaborating with Connect Biopharma’s experienced management team and Board of Directors to support the development of next-generation immunomodulators, working together to realize our shared vision of continuously improving the quality of life for patients worldwide.’”

Dr. Pan Wubin, Co-founder, Chairman, and President of Connect Biopharma“He stated: ‘The continued support from our existing investor, Qiming Venture Partners, along with the endorsement from top-tier international investment institutions in the biopharmaceutical industry, not only demonstrates their high recognition of our ability to achieve milestones but also reflects the industry’s strong expectations for the immense potential of new drug products derived from Connect Biopharma’s unique R&D platform. RA Capital Management is a premier international fund dedicated to investing in companies developing innovative products, including new drugs, medical devices, and diagnostics. We believe that Dr. Derek will make substantial contributions to Connect Biopharma in terms of corporate strategic planning and implementation, particularly in improving patients’ quality of life, enhancing the healthcare system, and increasing investor value. I warmly welcome him and look forward to his joining our Board of Directors.’”

CBP-201 is a highly potent anti-IL-4Rα monoclonal antibody. In Th2 cell-mediated inflammatory diseases, IL-4 and IL-13 are two key pro-inflammatory cytokines with significantly overlapping biological functions, both of which rely on cell-surface IL-4Rα for inflammatory signal transduction. CBP-201 is an innovative antibody-based drug independently developed by Connect Biopharma through its proprietary immune modulation technology platform. It is currently in clinical development for the treatment of moderate-to-severe atopic dermatitis and other Th2-type inflammatory diseases with unmet clinical needs.

Phase 1b clinical study results of CBP-201 in adult patients with moderate-to-severe atopic dermatitis demonstrate that the drug has a favorable safety profile and exhibits superior efficacy after four weeks of treatment compared to current standard-of-care data for atopic dermatitis. Notably, 42.9% and 50.0% of patients receiving CBP-201 at doses of 300 mg and 150 mg, respectively, achieved “clear/almost clear” skin lesions at week 4, a finding that is particularly striking when compared with the efficacy of existing standard therapies. Furthermore, the study confirmed that improvements in affected skin lesions were observed as early as one week post-dosing, accompanied by rapid reductions in both itch intensity and itch frequency. With its highly specific efficacy profile, faster onset of action, and the potential for once-every-four-weeks dosing, CBP-201 holds distinct advantages over other approved biologics requiring once-every-two-weeks administration, which are poised to drive its clinical and commercial success.

CBP-307 is a novel second-generation agonist of sphingosine-1-phosphate receptor 1 (S1P1), a G protein-coupled receptor (GPCR) that plays a central role in regulating T cell trafficking. Discovered using Connect Biopharma’s proprietary T cell screening platform, CBP-307 is the most potent S1P1 agonist reported to date in clinical development, with excellent physicochemical properties. In two completed Phase 1 randomized, double-blind, placebo-controlled studies, CBP-307 demonstrated an outstanding safety profile, potent T cell modulatory activity, and favorable pharmacokinetic and pharmacodynamic characteristics, highlighting its best-in-class potential. CBP-307 is currently being evaluated in two Phase 2 studies to assess its efficacy and safety in patients with moderate-to-severe ulcerative colitis and moderate-to-severe Crohn’s disease.

Connect Biopharma is a biopharmaceutical company with clinical-stage products, operating in both the United States and China. The company focuses on the development of novel therapies for autoimmune diseases and inflammatory conditions, committed to providing patients in China and worldwide with new drugs that offer enhanced efficacy and fewer side effects. Connect Biopharma has established a high-throughput drug screening platform based on T-cell immunomodulatory functions. Compared with traditional methods, this platform enables rapid and efficient identification and screening of disease-modifying molecules targeting relevant therapeutic targets.

In addition to CBP-201 and CBP-307, the Company is concurrently advancing three preclinical programs, including two small-molecule drug candidates (CBP-174 and CBP-312) and an anti-IL-33 antibody (CBP-233), for the treatment of various severe inflammatory diseases. Connect Biopharma retains global rights to all products in its novel drug pipeline.

For more information about Connect Biopharma, please visit www.connectbiopharm.com.

RA Capital Management is a premier global investment fund focused on healthcare and life sciences. Performance-driven, it invests in both private and public companies in the pharmaceutical, medical device, and diagnostics sectors, providing them with capital and strategic support. Its flexible strategy enables the firm to provide seed funding to startups, lead private investments and IPOs, and offer follow-on financing to portfolio companies, thereby driving value creation from concept through commercialization. For more information about RA Capital Management, please visit www.racap.com.

Lilly Asia Ventures (LAV), established in 2008, is a leading venture capital fund focused on investments in the life sciences and healthcare sectors, with offices in Shanghai, Hong Kong, and Silicon Valley. LAV is committed to being a trusted partner for outstanding entrepreneurs seeking smart capital, co-creating great companies that develop breakthrough products to combat diseases and improve human health. For more information about Lilly Asia Ventures, please visit www.lillyasiaventures.com.

Boxer Capital, founded in 2005 by the Healthcare team of Tavistock Group, a renowned international investment firm, is a fund focused on investing in the biotechnology sector and is based in San Diego, California. The fund creates value by investing in innovative therapies for various disease indications to help improve patient care and treatment outcomes. It invests in both private and publicly listed innovative pharmaceutical companies, covering the entire spectrum of new drug development from early preclinical research and late-stage clinical development to commercialization. For more information about Boxer Capital, please visit www.boxercap.com.

HBM Healthcare Investments is a globally diversified investment fund established in Switzerland and listed on the SIX Swiss Exchange (ticker symbol: HBMN). The fund focuses on investing in promising companies within the healthcare sector, with its portfolio covering human medicine, biotechnology, medical technology, novel diagnostics, and related fields. For more information about HBM Healthcare Investments, please visit www.hbmhealthcare.com/en.

Qiming Venture Partners was established in 2006 and has successively set up offices in Shanghai, Beijing, Suzhou, Shenzhen, Hong Kong, Seattle, Boston, and the San Francisco Bay Area. Currently, Qiming Venture Partners manages nine U.S. dollar funds and five RMB funds, with total assets under management exceeding US$5.3 billion. Since its inception, the firm has focused on investing in outstanding early- and growth-stage companies in sectors such as TMT and Healthcare. To date, Qiming Venture Partners has invested in more than 350 high-growth innovative enterprises, among which over 110 have achieved exits through listings on exchanges including the New York Stock Exchange (NYSE), NASDAQ, Hong Kong Stock Exchange (HKEX), Taipei Exchange (TPEx), Shanghai Stock Exchange (SSE), and Shenzhen Stock Exchange (SZSE), as well as through mergers and acquisitions. More than 30 of these portfolio companies have become industry-recognized unicorns and super unicorns. For more information about Qiming Venture Partners, please visit www.qimingvc.com.