Oncorus Secures $79.5 Million Series B Financing to Advance Next-Generation Oncolytic Virus Therapies

On August 22, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that immuno-oncology company Oncorus announced the completion of a $79.5 million Series B financing round. The round was co-led by Cowen Healthcare Investments and Perceptive Advisors. Several investors from its Series A round, including MPM Capital and the UBS Oncology Impact Fund, along with six other investment firms, participated as follow-on investors. Additionally, seven new institutional investors also joined this financing round.

The proceeds from this financing round will be used to advance the company’s next-generation oncolytic virus therapy for intratumoral and intravenous administration across multiple solid tumor indications. Dr. Robert L. Kirkman and Mr. Spencer Nam will join the board of directors of Oncorus. Dr. Kirkman currently serves as Executive Chairman of Trillium Therapeutics and will assume the role of President and Chief Executive Officer of Oncothyreon upon closing of the financing. Mr. Nam is an Executive Partner at KSV Global and previously served as a Senior Fellow at the Christensen Institute.

Oncorus, founded on April 1, 2015, and headquartered in Massachusetts, USA, is an immuno-oncology company focused on the development of oncolytic virus-based cancer immunotherapies. Oncorus treats cancer by developing next-generation immune platforms. Its oncolytic virus immunotherapy platform engineers viruses to enter tumor cells, replicate within them, and cause tumor cell lysis, while simultaneously activating the immune system to destroy any residual cancer cells. The company is currently developing an oncolytic herpes simplex virus, primarily targeting highly malignant and aggressive tumors such as glioblastoma (GBM).

Oncorus plans to advance its lead candidate, ONCR-177, into clinical trials in early 2020. ONCR-177 is an intratumoral viral clinical candidate for multiple solid tumor indications. It is built on the company’s next-generation oncolytic herpes simplex virus (oHSV) platform, which leverages advanced oncolytic virotherapy technology. The herpes simplex virus (HSV) vector itself exhibits high infectivity and rapid amplification; genetically engineered HSV selectively infects tumors and synergizes with chemotherapy or radiotherapy to kill cancer cells, thereby triggering anti-tumor immune responses. Oncorus also intends to advance its innovative synthetic oncolytic virus platform.

“Oncolytic virus therapy has the potential to change the prognosis for cancer patients,” said Theodore Ashburn, M.D., President and Chief Executive Officer of Oncorus. “We intend to use the proceeds from this financing to advance our proprietary intratumoral and intravenous delivery platforms, with the aim of addressing significant unmet medical needs in oncology. We are delighted to have the support of Cowen Healthcare Investments, Perceptive Advisors, and other new investors, and we thank our existing investors for their continued support.”

Cowen Healthcare Investments is a boutique investment bank specializing in the healthcare sector, investing in promising healthcare technology companies by leveraging global resources. Cowen’s healthcare team focuses on providing financing and financial advisory services to companies in life sciences, medical technology, and healthcare services. The firm is headquartered in New York, USA.

Perceptive Advisors was founded in 1999 and is headquartered in New York, USA. The firm specializes in the biopharmaceutical industry, investing capital and other resources into the most promising startups in modern healthcare. Perceptive Advisors manages approximately $4 billion in assets and has invested in more than 60 companies to date.

MPM Capital, founded in 1996 and headquartered in Massachusetts, USA, is a venture capital firm primarily investing in the healthcare industry. It seeks to treat serious diseases by translating scientific innovations into positive clinical outcomes. MPM invests in innovative therapeutic areas, with a focus on oncology. Leveraging its experienced team of investment professionals, executive partners, entrepreneurs, and members of its Scientific Advisory Board, MPM is driving medical innovations that transform patients’ lives.

The UBS Oncology Impact Fund is a venture capital firm managed by F2 Ventures, focusing on investing in startups within the field of cancer treatment.

(Compiled by Cheng Tao)