Fusion Pharmaceuticals Secures $105 Million Series B Financing to Expand Clinical Trials of Targeted Alpha Therapies

VCBeat (WeChat ID: vcbeat) has learned that on April 2, 2018, Canadian biopharmaceutical company Fusion Pharmaceuticals announced the completion of a $105 million Series B financing round. The round was led by Varian and OrbiMed, with participation from Perceptive Advisors, Pivotal bioVenture Partners, and Rock Springs Capital.

Since its establishment in 2014, Fusion Pharmaceuticals has cumulatively raised over $150 million, having previously completed its Series A and Series A+ financing rounds in February 2017 and September 2017, respectively. The proceeds from this financing round will be used to expand the scope of clinical trials for targeted alpha-particle therapy and to accelerate the pipeline development of new radiopharmaceuticals and combination therapies.

Financing History (Source: Crunchbase, VCBeat)

Radioimmunotherapy (RIT) is a conventional approach to targeted cancer radiotherapy. It works by conjugating radioactive isotopes to monoclonal antibodies that specifically target tumors, thereby selectively killing tumor cells while minimizing damage to healthy tissues. Although RIT has achieved breakthroughs in treating hematologic malignancies such as non-Hodgkin lymphoma (NHL), β-emission-based RIT has shown limited efficacy against solid tumors. This is likely because the energy released by β-decay, which generates free electrons, typically travels over relatively long distances (up to several millimeters). As a result, it fails to deliver concentrated radiation to the tumor mass and instead causes collateral damage to surrounding healthy tissues.

In contrast, the targeted alpha therapy developed by Fusion Pharmaceuticals offers distinct advantages. Alpha particles (helium-4 nuclei) possess significantly greater linear energy transfer than free electrons, resulting in DNA damage to cancer cells that is more difficult to repair. More importantly, due to their relatively low penetrating power, alpha particles deposit their energy within a limited range of 70–100 micrometers, thereby delivering a concentrated cytotoxic effect to solid tumors.

Fusion Pharmaceuticals has established its Fast-Clear™ technology platform, which binds targeted drugs with alpha particles to precisely deliver them to tumor sites. The company is currently conducting a Phase I clinical trial involving 30 patients with advanced-stage cancer using this technology. Meanwhile, the company is exploring the application of this platform to various classes of therapeutics, including antibodies and small molecules.

Schematic Diagram of Fast-Clear™ (Source: Company Website)

“This financing reflects the strong support from investors for our people and technology,” said Dr. John Valliant, CEO of Fusion Pharmaceuticals. “This investment enables us to advance our clinical trials around Fast-Clear™ and expand our team.”

Varian’s Chief Marketing Officer, Deepak Khuntia, stated, “We are drawn to its superior technology, broad patient applicability, and promising future applications. Targeted alpha-particle therapy has the potential to eradicate the most resistant cancers.”

“Fusion Pharmaceuticals is an industry leader in targeted alpha-particle therapy. The company holds a unique advantage in early-stage clinical trials, with the potential to improve the lives of cancer patients,” said Chau, Partner at OrbiMed.

Varian is a U.S.-based medical device manufacturer, primarily producing X-ray-related medical equipment. The company operates more than 70 offices worldwide and employs 6,500 people.

OrbiMed is an investment firm focused on the healthcare industry. Founded in 1989, it has grown from an early-stage private company into a large multinational corporation. The firm’s team comprises more than 80 scientists, physicians, investors, and other professionals, and it currently manages approximately $13 billion in assets.

Reference Link:

https://fusionpharma.com/fusion-pharmaceuticals-raises-105-million-in-oversubscribed-series-b-financing/

https://www.businesswire.com/news/home/20190402005385/en/Fusion-Pharmaceuticals-Raises-105-Million-Oversubscribed-Series

(Compiled by Yang Shaobo)