In what could prove to be 2019's largest funding round in Central Virginia, a Blacksburg pharmaceutical startup has raised $60 million.
The capital infusion is headed to Landos Biopharma, which is developing autoimmune disease medications.
This round is one of the largest for any startup in the region in recent history, eclipsing the $45 million haul from Roanoke County’s PixelOptics in 2011.
The fresh funding came from previous investor Perceptive Advisors, which led the 2017 round, and new investors including RTW Investments, Osage University Partners and PBM Capital.
The deal adds to a $10 million round in 2017 for Landos, right before it began clinical trials of its lead drug candidate, BT-11.
BT-11 is an oral treatment for ulcerative colitis and Crohn’s disease. The previous $10 million raise went to Phase 1 clinical trials of the drug, and this new round is primarily earmarked for Phase 2 trials.
The results have so far been promising. CEO Josep Bassaganya-Riera told the Roanoke Times that the drug has tested safe for humans and showed lower fecal calprotectin levels – a key indication for effectiveness.
The first study will include 195 patients with ulcerative colitis in the U.S. and Europe, and similar studies for Crohn’s disease will follow. The funds will also push Landos’ next drug, NX-13, closer to clinical trials.
“We believe there is tremendous commercial potential for an oral compound for IBD and BT-11 is the most promising candidate we’ve seen at this stage of development,” Perceptive Advisors portfolio manager Chris Garabedian said in a statement. “We are impressed with the productivity and efficiency of the Landos team in completing a comprehensive preclinical program, securing two open INDs, and successfully generating Phase 1 clinical results in less than two years."
Landos was the first biotech startup to come out of accelerator Xontogeny, a Boston-based accelerator led by the former CEO of Sarepta Therapeutics, two years ago. It employs about 20 people between its Blacksburg headquarters and Northern Virginia office.
Bassaganya-Riera told the Roanoke Times it will add more workers, including clinical project managers and scientific researchers, in an effort to double its headcount in the next couple years.
If Phase 2 trials are successful, he added, Landos would consider an acquisition or IPO to fund the final phase.
