Electra Therapeutics Secures $183M in Series C Funding for Rare Disease Drug Development

Electra Therapeutics, a San Francisco-based biotech company, has announced a successful $183 million Series C funding round to advance its innovative drug development program for secondary hemophagocytic lymphohistiocytosis (HLH), a rare and potentially fatal inflammatory condition. The funding will support further clinical testing of the company's lead drug candidate, ELA026, which targets signal regulatory proteins (SIRPs) to treat this severe immune disorder.

ELA026: A Novel Approach to Treating Secondary HLH

ELA026, Electra's lead monoclonal antibody, works by depleting myeloid and T cells that express SIRPs. The drug is being positioned as a potential first-line treatment for secondary HLH, a condition that can develop in patients with cancer or rheumatological diseases such as arthritis.

Secondary HLH is characterized by an overactive immune response, leading to symptoms including fever, jaundice, abdominal swelling, seizures, fatigue, and low blood cell counts. If left untreated, it can result in organ failure and death. Current treatment options for secondary HLH are limited, typically involving a combination of steroids, chemotherapy, and anti-cytokine medicines.

Kathy Dong, CEO of Electra Therapeutics, emphasized the drug's potential, stating, "There is strong scientific rationale and fit between the disease pathology and the mechanism of the drug. In addition to that, there's just tremendous unmet need in this disease, and we saw a path to get to that clinical proof-of-concept and validation quickly."

Clinical Progress and Future Plans

Electra has already demonstrated promising results for ELA026. In a Phase 1b study completed last year, the drug showed a favorable safety profile in cancer patients with secondary HLH. Building on these findings, the company has initiated a Phase 2/3 trial to further evaluate the treatment's efficacy.

In addition to its focus on secondary HLH, Electra plans to explore ELA026's potential in treating blood cancers. The company is also developing another drug candidate, ELA822, for immune conditions, though specific target indications have not yet been disclosed. Dong suggested that Electra's technology platform could have broad applications in diseases such as Type 1 diabetes, multiple sclerosis, and celiac disease.

Strategic Growth and Industry Support

The substantial Series C funding round was co-led by Nextech and EQT Life Sciences, with participation from notable investors including Sanofi, HBM Healthcare Investments, and Mubadala Capital. This latest investment follows Electra's $84 million Series B round in 2022 and marks a significant milestone in the company's growth trajectory.

Thomas Geninatti, a principal at Nextech, expressed confidence in Electra's approach, saying, "These encouraging results provide validation for targeting SIRP as a novel mechanism and position Electra to expand its application across immunology and oncology."

Electra Therapeutics, which began as a subsidiary of Star Therapeutics' hub-and-spoke model in 2018, became operationally independent in 2023. The substantial funding and industry support underscore the potential of Electra's innovative approach to treating rare inflammatory diseases and highlight the growing interest in targeted therapies for conditions with significant unmet medical needs.