US-based genetic therapeutics developer Homology Medicines completed an $83.5m series B round yesterday led by investment management firm Deerfield Management that included pharmaceutical firm Novartis.
Alexandria Venture Investments, the VC arm of real estate investment trust Alexandria Real Estate Equities, also took part in the round, as did financial services group Fidelity Management and Research, and Singaporean state-owned investment firm Temasek.
The round was filled out by HBM Healthcare Investments, Maverick Ventures, Rock Springs Capital, Vida Ventures, Vivo Capital, 5AM Ventures and Arch Venture Partners.
Homology is using gene editing and gene therapy to create treatments for rare diseases that will work through in vivo editing of genetic mutations.
Part of the funds will go to development of Homology’s lead product candidate, a preclinical-stage drug to treat an inborn error of metabolism disease, while additional capital will support further work on its technology in order to combat rare genetic diseases.
Arthur Tzianabos, CEO of Homology Medicines, said: “This funding from leading biotechnology investment firms will enable us to rapidly bring our first development candidate toward the clinic and advance our expanding pipeline.
“The strong support from investors who understand the space and appreciate the potential of our novel human-derived adeno-associated virus vectors to both edit and correct genes validates this technology for developing new therapeutic options and, ultimately, cures for patients.”
Homology had previously raised $43.5m in a March 2016 series A round co-led by 5AM Ventures and Arch Venture Partners that included Deerfield Management, Temasek and Arch Venture Partners’s Arch Overage Fund.