ElevateBio, one of the leading biotech companies focused on gene-based therapies, has raised a massive $525 million Series C round of financing, more than doubling the company’s $193 million Series B funding which closed last year. This new funding comes from existing investor Matrix Capital Management, and also adds new investors SoftBank and Fidelity Management & Research Company, and will be used to help the company expand its R&D and manufacturing capabilities, as well as continue to spin out new companies and partnerships based on its research.
Cambridge, Massachusetts-based ElevateBio was founded to bridge the world of academic research and development of cell and gene therapies with that of commercialization and production-scale manufacturing. The startup identified a need for more efficient means of bringing to market the ample, promising science that was being done in developing therapeutics that leverage cellular and genetic editing, particularly in treatment of severe and chronic illness. Its business model focuses on both developing and commercializing its own therapies, and also working through long-term partnerships with academic research institutions and other therapeutics biotech companies to bring their own technologies to market.
To this end, ElevateBio is in the business of frequent spin-out company creation, with the new entities each focused on a specific therapeutic. The company has announced three such companies to date, including AlloVir (in partnership with Baylor College of Medicine), HighPassBio (a venture with gene-editing company Fred Hutchinson) and Life Edit Therapeutics (in partnership with AgBiome). There are additional spin-outs in the works, too, according to ElevateBio, but they are not being disclosed publicly yet.
As you might expect, ElevateBio seems to have benefited from the increased appetite for biotech investment stemming from the global pandemic and its impacts. ElevateBio’s AlloVir spin-out is actually working on a T cell therapy candidate for addressing COVID-19, which is potentially effective in eliminating cells infected with SARS-CoV-2 in a patient to slow the spread of the disease and reduce its severity.
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