Startup Exit Awards: Winner - Top equity funding transactions
In July 2021, Wugen announced it raised $172 million in a Series B funding round to advance clinical development of its cancer-fighting therapies. Based in the Cortex innovation district, Wugen in March said it dosed the first patient in the initial phase of a clinical trial for its drug WU-CART-007. The trial is focused on studying the drug's treatment of relapsed or refractory (R/R) T-cell acute lymphoblastic leukemia (T-ALL)/lymphoblastic lymphoma (LBL). Founded in 2018, Wugen is developing “off the shelf” cell therapies to treat various cancers. The startup was created via technology licensed from Washington University and is developing so-called natural killer (NK) and T-cell therapies.
Dan Kemp, Wugen's president and CEO, shared how the company has used its funding to expand:
What made last year the right time for Wugen to raise its Series B financing? Founding CEO John McKearn positioned Wugen well prior to the financing, advancing our lead CAR-T cell therapy program and in-licensing our foundational memory NK technology from Washington University in St. Louis.
Last year, we reached a critical juncture where we needed additional funding to vault us into our next phase of growth. We needed the capital to execute on our ambitions and were outgrowing our shared incubator space. We were also able to opportunistically tap into the inflow of capital into the biotech industry. The $172M Series B financing came at a key time in our company development and supported timely advancement of our programs across the board. We have since progressed our innovative CAR-T program into its first clinical trial while building out our cutting-edge memory natural killer cell therapy platform.
What makes the investors in the Series B financing the right investors for Wugen? Our Series B investors have a long history of investing in innovative, high-growth biotechnology companies like Wugen. We greatly appreciate the strong support from our Series B syndicate; their wealth of industry expertise and robust partnership has contributed directly to Wugen’s sustained success.
How has the company used its Series B financing? We have used our Series B financing to support further clinical development of Wugen’s best-in-class memory NK cell platform and advance our products into clinical trials for patients with severe acute myelogenous leukemia (AML) and other oncology indications, including solid tumors. Wugen has also applied these proceeds to advance its broader pipeline of next-generation products into the clinic, including its allogeneic CD7-targeted CAR-T cell therapy to treat T-cell leukemia and lymphoma.
Since the financing, we have achieved many significant milestones: presenting foundational scientific data on our memory NK platform at multiple leading medical and scientific meetings, dosing the first patient in our Phase 1/2 clinical trial of WU-CART-007 for patients with relapsed or refractory (R/R) T-cell acute lymphoblastic leukemia (T-ALL) or lymphoblastic lymphoma (LBL), and, most recently, expanding from our original incubator space into our new headquarters at the Cortex innovation district. We have also been able to grow our team substantially, and now have over 75 full-time employees.
What’s the timeline for completion of current clinical trial? We are excited to have dosed our first patient in Phase 1/2 Trial of WU-CART-007 for the treatment of patients with R/R T-ALL/LBL. We expect to be able to share initial data within the next several months.
How is being located in St. Louis a competitive advantage for Wugen? Our founding city of St. Louis is a premier location that has and continues to foster our growth. We are proud to be part of St. Louis’ vibrant biotech community, where we have been able to grow while maintaining proximity to our world-class scientific co-founders at Washington University and building on our existing partnerships with the area’s premier scientific institutions. The St. Louis community not only offers great exposure and support but is also home to a robust scientific talent pool that has been critical to our company’s expansion.
Is Wugen currently hiring? If so, for what roles? We are growing into a brand new research headquarters within the Cortex Innovation District and are excited to continue expanding our team. We are currently hiring for roles within the clinical, chemistry & manufacturing control, and research & development teams.
More about the deal
Stage: Series B
Amount raised: $172 million
Investors: London-based life sciences investment firm Abingworth and Asia-based investor Tybourne Capital Management led the round. New Wugen investors in the deal included Fidelity Management & Research Co., Intermediate Capital Group, Sands Capital, Aisling Capital Management, Alexandria Venture Investments, Velosity Capital and Falcon Edge Capital. Existing investors, including St. Louis-based RiverVest Venture Partners, LYZZ Capital and Lightchain Capital, were part of the round too.
Startup Exit Awards: Finalists - Top equity funding transactions
EmpowerMe Wellness
What it does: Founded in 2017, EmpowerMe Wellness is a tech-enabled, multi-service health care provider for senior living facilities, providing integrated therapy, diagnostic, pharmacy and primary care services for their residents. It says it services are used by more than 450 senior living communities in more than 20 states.
Funding round: EmpowerMe Wellness in January said it closed on more than $100 million in funding from investors. The lead investor is St. Louis-based holding company Hermann Cos., owned by the Hermann family. Another key investor is prominent St. Louis entrepreneur Jim McKelvey, who is the founder of data startup Invisibly and co-founder of financial services company Block (NYSE: SQ).
How the funding was used: EmpowerMe Wellness plans to add 500 jobs at its corporate headquarters in St. Louis, 1335 Strassner Drive in Brentwood, in the next three years. It plans to hire therapists, nurse practitioners, pharmacists, phlebotomists and laboratory scientists for roles in St. Louis and beyond the region and expand its services into more senior living facilities.
Arcadian Infracom
What it does: Founded in 2018, Arcadian develops and operates long-haul fiber networks for use by technology companies and carriers. Arcadian's key focus is serving rural and tribal lands in an effort to boost broadband access in underserved areas.
Funding round: New York-based financial services firm TIAA is making an equity investment that involves providing Arcadian up to $140 million in financing.
How the funding was used: Arcadian’s funding has been used to pursue the start of construction on its first fiber routes. Initial routes being targeted by the startup would run from Salt Lake City to Phoenix and Phoenix to Denver and from Los Angeles to Dallas.
Geneoscopy
What it does: Geneoscopy is developing diagnostic tools for gastrointestinal health. Its first product being developed is an at-home test for colorectal cancer.
Funding round: Geneoscopy in November raised $105 million in funding, which includes a mix of equity and debt financing. Lightchain Capital, the family office of Scottrade Financial Services Inc. founder Rodger Riney, and angel investor group NT Investments led the Series B funding round. Others in the deal included St. Louis-based investors Cultivation Capital and BioGenerator as well as Morningside Ventures, Labcorp (NYSE: LH) and Innovatus Capital Partners.
How the funding was used: The startup used the funding to advance a clinical trial for its preventive screening test for colorectal cancer and to target R&D efforts for new products.
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