Electra Therapeutics Secures $183M Series C Funding for Rare Disease Treatment

Electra Therapeutics, a South San Francisco-based biotech company, has successfully raised $183 million in a Series C financing round to advance its pivotal trial for a rare disease candidate. The oversubscribed funding, co-led by Nextech and EQT Life Sciences, marks a significant leap from the company's previous $84 million raise in 2022, signaling renewed investor confidence in the biotech sector.

Funding Breakdown and Investor Interest

The financing round saw participation from a diverse group of investors, including pharmaceutical giant Sanofi, Mubadala Capital, OrbiMed, Blue Owl Capital, and RA Capital Management. Kathy Dong, President and CEO of Electra, highlighted the encouraging signs in the market, noting that numerous investors are actively seeking opportunities to deploy capital.

"It was highly encouraging to hear from multiple investors that our first-in-class and first-in-disease story was differentiating and refreshing, and that there is support in the ecosystem for innovation," Dong stated.

ELA026: A Breakthrough in Rare Disease Treatment

The newly secured funds will primarily support the global Phase 2/3 trial of Electra's lead candidate, ELA026. This monoclonal antibody targets signal regulatory proteins (SIRP) to selectively deplete pathological immune cells. The pivotal trial is evaluating ELA026 as a front-line treatment for secondary hemophagocytic lymphohistiocytosis (sHLH), a rare hyperinflammatory disease with limited therapeutic options.

ELA026 has already shown promise in a Phase 1b study, achieving a 100% overall survival rate at eight weeks in patients with malignancy-associated HLH. The therapy has received breakthrough designation from the FDA and priority medicines designation from European regulators, marking it as the first asset to receive such statuses for sHLH.

Clinical Trial Progress and Future Outlook

The pivotal portion of the Phase 2/3 study has commenced dosing at sites in the U.S. and Europe, targeting both adult and pediatric patients. The trial aims to enroll up to 90 participants, with overall survival at Week 8 as the primary endpoint. Dong anticipates trial enrollment to conclude in 2027, with top-line results expected shortly thereafter.

Kim-Hien Dao, Ph.D., Electra's Chief Medical Officer, emphasized the company's close collaboration with regulatory agencies to accelerate development and bring ELA026 to patients as quickly as possible. The FDA's recognition of the high unmet need in sHLH and the potential of ELA026 has fostered a collaborative relationship between the agency and Electra.

As Electra Therapeutics advances its lead program and expands its pipeline, the substantial Series C funding not only underscores the company's potential but also reflects a broader resurgence of investor interest in innovative biotech ventures addressing critical unmet medical needs.