ElevateBio Secures $150 Million Series A Financing to Support Cell and Gene Therapy Startups with Integrated R&D and cGMP Manufacturing Platform

VCBeat (WeChat ID: vcbeat) has learned that on May 13, 2019, biotechnology company ElevateBio completed a $150 million Series A financing round. The round was led by MPM Capital and the UBS Oncology Impact Fund, with participation from EcoR1 Capital, Redmile Group, and Samsara BioCapital.

Headquartered in Cambridge, Massachusetts, ElevateBio focuses on immunotherapy, regenerative medicine, and gene therapy. The company has built a fully integrated business model designed to provide funding, R&D infrastructure, and expertise in drug development and commercialization to companies developing gene and cell therapies.

Biotechnology companies face two options when conducting clinical trials: producing drugs in-house or hiring contract manufacturers for production. For gene and cell therapy companies, in-house drug development is extremely costly, so these companies often rely on contract manufacturers to develop their products. Now, ElevateBio offers these companies another option. The company is establishing a cGMP subsidiary aimed at providing gene and cell therapy laboratories to multiple startups and will help them grow by investing in these companies.

Mitchell Finer, former Chief Scientific Officer of Bluebird Bio and current Chief Scientific Officer of ElevateBio, believes that the lack of in-house R&D facilities is a bottleneck for the development of gene and cell therapy companies. He stated, “Most startups do not have the capacity to build their own R&D facilities; for instance, it took Bluebird Bio eight to nine years to establish its own. Moreover, contract manufacturing organizations (CMOs) are prohibitively expensive for most gene and cell therapy startups. Gene and cell therapy products involve viral vectors, requiring researchers to extract cells from patients, modify them ex vivo, and then reinfuse them into the body. This process is complex, costly, and often takes several weeks.”

ElevateBio is constructing a 100,000-square-foot cGMP subsidiary named BaseCamp in Waltham, Massachusetts. The facility is expected to become fully operational in the second half of 2020 and will house cGMP manufacturing suites, analytical and QC laboratories, as well as laboratories for protein engineering, virology, and immunology. Meanwhile, the personnel at the subsidiary possess world-class expertise in developing immunotherapies, regenerative medicine products, in vivo viral therapies, and other gene and cell therapies. They provide specialized R&D space and guidance to ElevateBio’s portfolio companies, helping them accelerate product development.

It is understood that as research related to gene and cell therapies continues to achieve breakthroughs, with multiple such therapies approved in the United States and Europe, many biopharmaceutical companies have begun to vigorously develop gene and cell therapies. Leading companies such as Roche, Pfizer, and Johnson & Johnson all acquired gene therapy assets in 2019. In addition, two contract development and manufacturing organizations (CDMOs) specializing in gene and cell therapies—Paragon Bioservices and Brammer Bio—were both acquired in March 2019. The market size for gene and cell therapies is estimated to reach $40 billion.

David Hallal, CEO of ElevateBio, stated, “We are not a contract manufacturer; our goal is to become a significant shareholder in portfolio companies and help them develop products.” It is reported that ElevateBio will announce its first batch of portfolio companies and strategic partners in the coming weeks.

MPM Capital, founded in 1996 and headquartered in Massachusetts, is a venture capital firm focused on investing in startups within the healthcare sector.

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.

EcoR1 Capital, founded in 2012 and headquartered in California, USA, is a venture capital firm focused on investing in biotechnology companies.

Redmile Group, founded in 2007, is a private equity and venture capital firm dedicated to venture capital, growth equity, and cross-border investments in the healthcare sector.

Samsara BioCapital, headquartered in California, USA, is a venture capital firm.

(Compiled by Jiao Yanli)