Surface Oncology Secures $25 Million Debt Financing to Advance Next-Generation Immuno-Oncology Therapies

On November 29, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that biotechnology company Surface Oncology announced the completion of a $25 million debt financing round. The investor in this round was K2 HealthVentures. Surface Oncology has currently received an upfront payment of $7.5 million and will receive the remaining $17.5 million upon completion of its tumor immunotherapy development program.

Surface Oncology, founded in 2014 and headquartered in Cambridge, Massachusetts, USA, is a clinical-stage biotechnology and pharmaceutical company. The company focuses on the field of immuno-oncology, primarily developing next-generation immunotherapies targeting the tumor microenvironment. Currently, Surface Oncology is collaborating with leading scientific founders to advance multiple preclinical programs, providing innovative therapies for cancer patients. The company went public on the NASDAQ Stock Exchange in April 2018, under the stock ticker symbol SURF.

The Surface Oncology team primarily focuses on researching the tumor microenvironment and possesses unique insights into cancer immunobiology. The company is developing multiple antibody-based immunotherapy candidates designed to enhance both innate and adaptive immunity, thereby improving prognoses for cancer patients. Surface Oncology’s portfolio of immunomodulators targets four key mechanisms of action: activating macrophages, activating natural killer (NK) cells, inhibiting or depleting regulatory T cells, and blocking inhibitory cellular signaling molecules such as cytokines and metabolites.

Surface Oncology has been exploring new immunotherapy targets and has developed candidate drugs targeting CD73, CD39, IL-27, and CD112R. Clinical trials have demonstrated that the company’s novel cancer immunotherapies elicit robust anti-tumor responses and can be administered either as monotherapy or in combination with other treatments. Surface Oncology is committed to advancing the frontiers of immuno-oncology research to deliver transformative therapies for cancer patients.

To achieve breakthrough scientific research outcomes, Surface Oncology has entered into strategic collaborations with multiple companies in the life sciences industry. In January 2016, Surface Oncology partnered with Novartis to advance the development of next-generation cancer immunotherapies. Under the collaboration agreement, Novartis obtained exclusive global licensing rights to SRF373, Surface Oncology’s fully humanized CD73 antibody, while Surface Oncology received a $70 million upfront payment from Novartis.

Jeff Goater, CEO of Surface Oncology, stated: “This financing is highly beneficial to our financial position; it enhances the company’s financial flexibility and will support the clinical development of our tumor immunotherapy.”

K2 HealthVentures, established in 2018 and headquartered in Boston, Massachusetts, USA, is a venture capital firm. The company focuses on the life sciences and healthcare industries, primarily providing flexible, long-term, and adaptable financing solutions to innovative private and public companies. K2 HealthVentures’ investment team comprises professionals with expertise in finance, operations, and medicine, possessing deep technical accumulation across various healthcare subsectors. By driving the development of innovative enterprises, the company aims to improve patients’ lives.

(Compiled by Xu Xiaoxue)