Grail, a US-based oncology diagnostics spinout of genomics technology producer Illumina, yesterday achieved a first close of its series B round at $900m with the backing of several corporates.
The round was led by VC firm Arch Venture Partners and included Johnson & Johnson Innovation, through its subsidiary Johnson & Johnson UK Treasury, an investment vehicle of pharmaceutical firm Johnson & Johnson.
Pharmaceutical firms Bristol-Myers Squibb, Celgene and Merck & Co, medical technology producer Varian Medical Systems, pharmaceuticals supplier McKesson’s corporate venturing unit McKesson Ventures, e-commerce company Amazon and internet company Tencent also contributed.
Grail is targeting a second close of more than $1bn, as we reported in January 2017, but may seek up to $1.8bn in total funding for the series B round, according to TechCrunch. The company is in talks with investment bank Goldman Sachs as a placement agent to secure that second tranche this quarter.
Established early last year, Grail is working on a blood test for early-stage detection of cancer that combines Illumina’s high-intensity sequencing technology with data obtained through computer science and population-scale clinical studies.
The cash will go towards further product development and validation of its blood tests through large-scale clinical trials. Some of the money was also used to repurchase some of Illumina’s shares in Grail, with the corporate now holding just under 20%.
Illumina and Arch Venture Partners co-led a series A round for Grail that was initially sized at $100m in January 2016 but later closed at $125m.