The top 20 healthcare-focused biotech companies collectively raised $2.9 billion in the first quarter of 2024, according to data sourced from Crunchbase.
That represents a 161% increase compared to the $1.1 billion raised by the 20 largest funding rounds involving healthcare-focused biotech companies in Q1 2023, indicating more confident bets on the market viability of promising healthcare biotechnology firms. Funding for pre-clinical platform biotechs, however, has tightened as investors increasingly prefer companies with clinical-stage assets.
Biopharma investors have also become more selective in the wake of the pandemic-era boom. In 2023, they invested $29.9 billion was invested across 920 deals, with deal activity declining in the second half of the year, according to a report from Pitchbook. Overall in 2023, VC funding for biotech startups was in the ballpark of $23 billion across 613 deals, a dip of 21% from 2022 and 42% from the peak in 2021, according to research from HSBC.
The following summaries of top healthcare biotech funding recipients in Q1 2024 highlight the companies highlight a range of promising focus areas, including precision oncology, AI-driven drug discovery, cell and gene therapies and novel approaches to treating autoimmune disorders. A table summarizing the core funding details follows the descriptions.
For a deeper dive into recent biotech companies winning funding, including an interactive map showing their funding totals, check out Global biotech VC trends in Q1 2024.
1. Alumis raises $529M in cumulative funding, including $259M in Series C
Alumis, formerly known as Esker Therapeutics, is a South San Francisco-based precision immunology company. Founded in 2021, the company specializes in developing targeted treatments for immune-mediated diseases, especially autoimmune conditions.
Using a precision analytics platform developed by Foresite Labs, Alumis aims to replace broad immunosuppression treatments with therapeutics addressing the specific causes of multiple autoimmune diseases. Its lead compound, ESK-001, is a highly selective TYK2 inhibitor in development for the treatment of psoriasis. Phase 3 trials are planned for the second half of 2024. It will also use the latest funding to support two ongoing phase 2 trials of ESK-001 in systemic lupus erythematosus (SLE) and noninfectious uveitis.
2. Freenome secures $1.35B in total funding, including $254M in Series E
Freenome, another South San Francisco-based biotech, was founded in 2014 to detect cancer in its earliest, most treatable stages. The company applies molecular biology, computational techniques and machine learning to analyze blood samples for early cancer detection. Freenome’s multiomics screening platform aims to identify cancer at its earliest stages.
Freenome’s first blood test targets early detection of colorectal cancer, the world’s second deadliest cancer responsible for over 50,000 annual deaths in the U.S. The company is also developing a blood test for early lung cancer detection.
3. Sionna Therapeutics brings in $292M, with $182M Series C
Sionna Therapeutics is a Waltham, Massachusetts-based life sciences company specializing in the development of treatments for cystic fibrosis (CF). Founded in 2019, the company builds upon extensive research into genetic mutations associated with CF to design novel small-molecule therapies.
Sionna Therapeutics has raised roughly $333 million in funding, including $182 million in its March 2024 Series C round. Investors include Enavate Sciences, Viking Global Investors, Perceptive Advisors, RA Capital, OrbiMed, TPG’s The Rise Fund, and the Cystic Fibrosis Foundation.
Sionna’s therapies target the most common CF-causing genetic mutation. Their aim is to normalize the function of the cystic fibrosis transmembrane conductance regulator (CFTR) protein. The company’s lead compound, SION-638, is currently in Phase 1 clinical trials, with plans to have four compounds in clinical trials by the end of 2024.
4. Capstan Therapeutics attracts $175 million Series B
Capstan Therapeutics, a San Diego-based biotech, has secured $340 million in funding, including an oversubscribed $175 million Series B round in March 2024. The company focuses on developing precision in vivo cell engineering technologies. The company, in stealth mode, is developing off-the-shelf immunotherapies for oncology, fibrosis, inflammatory diseases and blood monogenic disorders. The Series B proceeds will help advance CPTX2309, Capstan’s lead in vivo CAR-T candidate.
Haig Aghajanian, co-founder and VP of Research at Capstan, is affiliated with the University of Pennsylvania. A January 2022 study by Aghajanian and Penn Medicine colleagues demonstrated an experimental immunotherapy using mRNA to temporarily reprogram immune cells. This technology has potential applications in treating fibrosis, which contributes to numerous serious disorders.
5. BioAge Labs secures $294 million in funding, adds $170 million Series D
BioAge Labs, a Richmond, California-based clinical-stage biotechnology company, has raised approximately $294 million in funding, including a $170 million Series D round in February 2024. The company researches therapies for obesity and metabolic diseases, focusing on the mechanisms of aging.
Their lead compound, azelaprag, is an oral apelin receptor agonist with promising early trial results. BioAge plans to use the funding for Phase 2 trials of azelaprag combined with Eli Lilly’s Zepbound (tirzepatide) for obesity treatment. The studies with Zepbound are expected to begin in mid-2024, in collaboration with Lilly
Founded in 2015 and led by CEO Kristen Fortney, BioAge Labs has developed an AI-driven platform to analyze biological pathways and identify drug targets with potential impacts on longevity.
6. Jixing Pharmaceuticals raises $162 million in Series D
China-based Jixing Pharmaceuticals secured $162 million in a January 2024 Series D round, bringing their total raised to the same amount. The biopharma company develops novel therapeutics for cardiovascular and ophthalmic diseases. Bayer and RTW Investments were involved in the investment, putting up €32 million ($35 million) and €116 million ($127 million), respectively.
This funding will accelerate Jixing’s R&D pipeline and progression of therapies through clinical trials. The financing signals investor confidence in Jixing’s potential and highlights growing interest in China-based pharmaceutical companies addressing global health needs.
7. Obsidian Therapeutics brings in $325 million, with $160.5 million Series C
Obsidian Therapeutics, a Cambridge, Massachusetts-based clinical-stage biotechnology company, has raised approximately $325 million, including $160.5 million in an April 2024 Series C round. The company develops cell and gene therapies for cancer treatment, utilizing their cytoDRiVE technology for precise control of protein expression.
Obsidian’s lead program, OBX-115, is in clinical trials for metastatic melanoma and non-small cell lung cancer. Investors include Wellington Management, Foresite Capital, Janus Henderson Investors, Novo Holdings A/S, RTW Investments, T. Rowe Price, and Woodline Partners LP.
8. Clasp Therapeutics secures $150 million in Series A funding
Cambridge-based Clasp Therapeutics raised $150 million in a January 2024 Series A round, representing their total funding to date. The company develops precision immuno-oncology medicines designed to target hard-to-treat tumors.
Clasp Therapeutics’ technology focuses on enabling the immune system to combat tumors that are otherwise difficult to treat. This substantial initial funding signals investor confidence in the company’s approach and the potential to address significant unmet needs in cancer treatment.
9. FogPharma raises $530 million in total, including $145 million Series E
FogPharma, a Cambridge, Massachusetts-based clinical-stage biotechnology company, has raised a total of $530 million in funding, including a $145 million Series E round in March 2024. The company specializes in precision cancer treatments.
FogPharma’s core technology involves cell-penetrating miniproteins (CPMPs) designed to target and neutralize cancer-causing proteins within cells. This approach expands the potential treatment targets beyond the reach of conventional therapies.
10. Tubulis attracts €128 million ($140 million) Series B
Tubulis, a German biotechnology company specializing in antibody-drug conjugates (ADCs), has raised approximately $218 million in total funding. Their March 2024 Series B round added €128 million ($140 million). The company develops ADCs for the treatment of solid tumors and hematological malignancies.
Tubulis employs a proprietary ADC development platform that focuses on improving effectiveness and reducing toxicity. This substantial funding signals strong investor confidence in the company’s ADC technology and its potential to offer new treatment options for challenging cancers.
11. Alterome secures $231 million, including $132 million Series B
Alterome Therapeutics, a San Diego-based precision oncology biotech, has raised a total of $231 million in funding, including a $132 million Series B round in April 2024. The company develops alteration-specific therapies targeting oncogenic drivers in cancer patients.
Founded in 2021, Alterome Therapeutics plans to use the funding to advance two precision oncology programs into clinical development within the next year.
12. Diagonal Therapeutics secures $128 million in Series A funding
Cambridge, Massachusetts-headquartered Diagonal Therapeutics raised $128 million in an April 2024 Series A round. The biotech startup develops agonist antibodies, which activate receptors to provide therapeutic benefits.
Diagonal utilizes a unique platform combining computational and experimental techniques to overcome challenges typically associated with agonist antibody development. This substantial Series A funding highlights investor confidence and will fuel the company’s platform development and the advancement of agonist antibody candidates through the preclinical pipeline.
13. Neurona Therapeutics raises $120 million in Series E financing
Neurona Therapeutics, a San Francisco-based clinical-stage biotechnology company, has raised over $320 million in total funding, including a $120 million Series E round in February 2024. Founded by UCSF neuroscientists, the company develops cell-based therapies for neurological diseases like epilepsy and Alzheimer’s.
Neurona’s approach focuses on repairing neural networks using regenerative cell therapies. Their lead candidate, NRTX-1001, is an inhibitory neuron therapy for epilepsy. This significant funding highlights investor confidence in Neurona’s potential to address challenging neurological diseases.
14. Rakuten Medical secures $119 million in Series E, totaling $737.6 million in funding
San Diego-based Rakuten Medical secured $119 million in a March 2024 Series E funding round, bringing their total funding to $737.6 million. The company develops precision, cell-targeting therapies based on its proprietary Alluminox platform.
Rakuten Medical’s platform facilitates targeted treatments offering the potential to address challenging diseases. This substantial and ongoing funding signals strong investor confidence in the company’s technology and pipeline potential.
15. ProfoundBio secures $112 million Series B to advance antibody-based cancer therapeutics
Seattle-headquartered ProfoundBio, a clinical-stage biotechnology company, has raised a total of $247 million in funding, including a $112 million Series B round in February 2024. The company develops antibody-based cancer therapeutics with a focus on achieving curative outcomes.
ProfoundBio’s focus on antibody therapies offers the potential for highly targeted cancer treatments with reduced side effects. This substantial funding signals strong investor confidence and will fuel the advancement of their lead candidates through clinical trials while allowing pipeline expansion.
16. Zephyr AI lands $111 million Series A to fuel AI-driven precision medicine in oncology and cardiometabolic diseases
Zephyr AI, a Virginia-based healthcare technology company, raised $111 million in a March 2024 Series A round. The company specializes in using AI to enhance precision medicine efforts in oncology and cardiometabolic diseases.
Zephyr AI partners with healthcare providers and biotech companies to analyze real-world data, aiming to improve patient outcomes. This Series A funding, which includes investors like Eli Lilly, will fuel the company’s dataset expansion, analytics, and team growth.
17. Cour attracts $105 million Series A to advance nanoparticle-based autoimmune disease therapies
Skokie, Illinois-based Cour Pharmaceuticals raised $105 million in a January 2024 Series A, bringing their total funding to $135.5 million. The company develops nanoparticle therapies that aim to reprogram the immune system for autoimmune diseases, including multiple sclerosis.
Their lead product, partnered with Takeda, focuses on celiac disease. This partnership and the Series A funding, which included participation from Roche, Pfizer, and Bristol Myers Squibb, highlight investor confidence in Cour’s nanoparticle platform. The funding will support Phase 2 clinical trials for their myasthenia gravis and Type 1 diabetes programs.
18. Alamar Biosciences secures $100 million Series C to transform early cancer detection
Fremont, California-based Alamar Biosciences raised $100 million in a February 2024 Series C round, bringing its total funding to $194 million. The company specializes in developing technologies for early disease detection and treatment, with a focus on cancer.
Alamar’s early detection emphasis aims to identify diseases in their most treatable stages. This substantial funding signals strong investor confidence in the company’s potential to transform disease diagnosis and treatment.
19. OnCusp Therapeutics raises $100 million Series A to translate oncology research into novel therapies
New York-headquartered OnCusp Therapeutics, a biopharma company focused on oncology treatments, has raised a total of $125 million, including a $100 million Series A round in January 2024. Founded by industry veterans, the company aims to translate cutting-edge research into new therapies.
OnCusp’s lead candidate, CUSP06, is an antibody-drug conjugate (ADC) targeting the CDH6 protein. The company plans to use the Series A funding to advance CUSP06 toward clinical trials and expand its pipeline. Investors include Novo Holdings, OrbiMed, and F-Prime Capital, among others.
20. BlossomHill Therapeutics raises $100 million Series B; $173 million in total
BlossomHill Therapeutics, a San Diego-based clinical-stage biotechnology company, has raised a total of $173 million in funding, including a $100 million Series B round in January 2024. The company specializes in small-molecule drug development for oncology and autoimmune diseases.
Founded by J. Jean Cui, a renowned drug designer with multiple FDA-approved oncology drugs to her credit, BlossomHill Therapeutics aims to address unmet needs in these challenging therapeutic areas.
Filed Under: Biotech, Drug Discovery and Development, Oncology
