British biotechnology startup Pheon Therapeutics secures an additional USD 120 million in venture funding, driven by growing investor interest in its specialised cancer medicines, known as antibody-drug conjugates (ADCs).
Led by TCGX Capital, the Series B funding, announced on Tuesday, empowers Pheon to advance multiple drugs into clinical testing against solid tumors, with the first trial slated to commence later this year.
ADCs, which fuse a cell-killing toxin to a targeting antibody, represent a promising avenue in cancer drug development, aiming for more precise tumor targeting compared to traditional chemotherapy. Recent years have seen a surge in investment in ADC research and development due to technological advancements, clinical progress and increased regulatory approvals.
According to a recent report from Piper Sandler analysts, ADC companies raised a combined USD 2.7 billion between January 2022 and mid-March through 57 private and public financing deals. Additionally, 14 companies were acquired or merged during this period, a trend that continued with the acquisition of ProfoundBio in April.
Pheon's CEO, Cyrus Mozayeni, underscores the significance of ADCs in treating solid tumors, emphasising their established importance in current medical practice. While Pheon is taking a unique approach to ADC drug development, specific details remain undisclosed, including the targeted receptors. Mozayeni hints at the company's exploration of novel targets and advancements in chemical linkers and toxic payloads.
Backing from investors such as BVF Partners, Perceptive Advisors, Atlas Venture and Forbion, alongside TCGX and others, underscores confidence in Pheon's innovative approach. The startup had previously raised USD 68 million in a Series A round in 2022.
Mozayeni indicates that Pheon may consider an initial public offering (IPO) in the future, depending on market conditions. With funds secured through the latest funding round, Pheon aims to sustain operations until the end of 2027.
Formerly an entrepreneur-in-residence at Atlas Venture and CEO of gene therapy company Vedere Bio, Mozayeni brings a wealth of experience to Pheon's leadership, positioning the company for continued growth and innovation in the field of cancer therapeutics.
