What started out as a research project at University of Texas Southwestern Medical Center, is now a new startup landing the one of the largest funding round of the year so far for any North Texas company.
Dallas-based ReCode Therapeutics, a biotech startup focused on precision medicine for pulmonary diseases, closed on an $80 million Series A round co-led by OrbiMed Advisors and Colt Ventures. The round was joined by MPM Capital, Vida Ventures, Osage University Partners and Dallas-based early stage investor Hunt Technology Ventures.
This newest funding round is a large leap from the $2 million seed round it raised last year.
As part of the deal, ReCode will combine with California-based TranscripTx, a mRNA therapies developer. While retaining the name ReCode Therapeutics, the new company will be led by TranscripTx CEO David Lockhart, who will be based out of Menlo Park, Calif. ReCode co-founder Michael Torres will serve as the new VP of research and development.
“Our preclinical studies demonstrate that our targeted RNA therapies have great potential for the treatment of life-threatening pulmonary diseases,” Lockhart said in a prepared statement.
The move comes after Lockhart was helping OrbiMed and MPM evaluate ReCode. Though focusing on different diseases, both startups were looking at using RNA, the acid that encodes proteins. After realizing ReCode’s delivery system could be used for both companies, the companies were merged, and the Series A was raised within five months.
The new ReCode plans to use the round to continue preclinical trials of its programs. The company will largely focus on treating primary ciliary dyskinesia, a respiratory disorder and cystic fibrosis with an inhalant RNA drug therapy that targets specific organs. ReCode aims to file an investigational new drug application with the FDA by the end of next year. The funding will also carry the company through 2023.
“ReCode has an exceptional opportunity to… address the critical needs of patients living with devastating genetic respiratory diseases,” said Peter Thompson, a partner at OrbiMed, in a prepared statement.
