Arkuda Therapeutics Secures $44M Series A Financing Led by Pfizer and Atlas Venture to Advance Novel Therapies for Neurodegenerative Diseases

On November 11, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that biotechnology company Arkuda Therapeutics (“Arkuda”) announced the completion of a $44 million Series A financing round. The round was led by Pfizer Venture Investments and Atlas Venture, with participation from Tekla Capital Management and BioInnovation Capital.

Arkuda Therapeutics, a biotechnology company founded in 2018 by Atlas Venture and other institutions, is headquartered in Cambridge, Massachusetts, USA. The company is dedicated to research in precision neuroscience and lysosomal biology, leveraging findings on progranulin (PGRN) to develop novel therapies aimed at improving the quality of life for patients with neurodegenerative diseases.

Arkuda’s initial therapeutic focus is on GRN-related frontotemporal dementia (FTD-GRN). This condition typically manifests in middle-aged and older adults and is characterized by progressive loss of neurons in the frontal and temporal lobes of the brain, thereby affecting patients’ personality, behavior, language, memory, and motor function. The life expectancy after diagnosis is 6 to 7 years. Research has shown that the GRN gene primarily encodes progranulin (PGRN), which plays a crucial role in lysosomal function and innate immunity in the brain. Mutations in the GRN gene lead to PGRN deficiency, causing lysosomal dysfunction and subsequently triggering neurodegenerative diseases such as FTD-GRN.

Currently, the Arkuda team is exploring the mechanisms by which PGRN maintains normal lysosomal function and identifying small molecules to improve lysosomal function and neuronal health. The company’s drug candidates increase levels of PGRN and its functional subunits in the central nervous system, treating PGRN deficiency and lysosomal dysfunction, and fundamentally halting the progression of FTD-GRN. Arkuda is committed to leveraging biomarkers to accurately identify carriers of GRN gene mutations, thereby enabling early intervention for patients with FTD-GRN.

Gerhard Koenig, Founder and CEO of Arkuda, stated, “We believe a major challenge in treating neurodegenerative diseases lies in studying disease pathology, rather than merely addressing lysosomal dysfunction and PGRN deficiency. Arkuda will continue to develop innovative biologics to treat neurodegenerative diseases such as FTD-GRN.”

“Arkuda has been dedicated for many years to researching substances associated with the pathology of neurodegenerative diseases, such as the GRN gene and the tau protein gene,” said DPhil Bruce Booth, Chairman of Arkuda’s Board of Directors and Partner at Athil Venture. “Research indicates that lysosomes are crucial for maintaining neuronal health and offer a therapeutic avenue for neurodegenerative diseases. Building on this research, Arkuda will provide innovative therapies for patients with frontotemporal dementia (FTD), Alzheimer’s disease, and Parkinson’s disease.”

Pfizer Ventures was established in 2004 and is headquartered in New York, USA. It is the venture capital arm of Pfizer, a biopharmaceutical giant. The firm has always been at the forefront of life sciences development, seeking out and investing in emerging companies that are developing transformative drugs and technologies. Pfizer believes these companies have the potential to expand its product portfolio and shape the future of the life sciences industry.

Atlas Venture, founded in 1980 and headquartered in Cambridge, Massachusetts, USA, is a leading venture capital firm. The company primarily focuses on industries such as biotechnology, pharmaceuticals, and healthcare, providing seed and early-stage investments to startups. Atlas Venture collaborates with distinguished scientists and entrepreneurs to translate the latest scientific research findings into novel therapeutics, thereby creating value for the market.

Headquartered in Boston, Massachusetts, USA, Tekla Capital Management is a venture capital and asset management firm. The company primarily invests in the healthcare and life sciences sectors and currently serves as the investment advisor for the closed-end equity funds H & Q Healthcare Investors and H & Q Life Sciences Investors.

BioInnovation Capital, headquartered in Cambridge, Massachusetts, USA, is a venture capital firm. The company collaborates with other investors, inventors, business strategists, and entrepreneurs to invest in and establish dozens of early-stage life sciences companies.

(Compiled by Xu Xiaoxue)