GSK And Avalon Launch 2 Drug Firm Startups
GlaxoSmithKline and Avalon Ventures announced the launch of two new early-stage life science companies named Silarus Therapeutics and Thyritope Biosciences. Both companies will be based in San Diego and will each receive $10 million in initial financing.
The pair of new startups is the result of a drug discovery deal signed by GSK and Avalon last year that will oversee the launch of up to 10 new firms through preclinical proof of concept. Under the terms of the agreement, GSK will provide up to $465 million in seed funding, while Avalon will contribute up to $30 million to fund the new company launches over the next three years.
Silarus Therapeutics is focused on developing treatments addressing erythroferrone for the treatment of iron deficiency and iron overload disorders. The newly discovered hormone erythroferrone regulates iron supply for red blood cell production. Dysfunctional erythroferrone activity can either cause iron deficiency or iron overload — the former leading to lowered amounts of circulating oxygen-rich blood and the latter resulting in organ poisoning or failure. Silarus’ technology was established from intellectual property of the University of California, Los Angeles (UCLA) that was discovered by UCLA’s own Dr. Tomas Ganz and Dr. Elizabeta Nemeth.
Thyritope Biosciences is centered on developing drugs directed against thyroid stimulating auto-antibodies. These antibodies are the driving force behind Graves’ disease, in particular, Graves’ hyperthyroidism and Graves’ orbitopathy. Graves’ disease is an autoimmune disorder that causes excessive thyroid hormone production. Thyritope’s molecular evolution technology was developed by Dr. Patrick Daugherty from the University of California, Santa Barbara and was commercialized by Serimmune.
Avalon will provide both startups with executive leadership and operational management. GSK retains the option to acquire each of the startups once a drug candidate for clinical development has been identified. Should GSK choose not to acquire either of the firms, Avalon will retain its ownership and will be free to choose other partners for transactions.
Dr. Jay Lichter, managing director of Avalon Ventures, said, “Our collaboration with GSK represents a new model for driving early-stage drug discovery. …In less than 18 months we have launched three new companies in diverse therapeutic areas and completed our first compound screen for drug candidate identification in a robust collaboration with GSK. This collaboration has exceeded my expectations in terms of what we’ve been able to accomplish on such a short timescale.”
Lon Cardon, SVP of Alternative Discovery & Development at GSK, said, “From conception of the idea to three new companies in less than 18 months is an unprecedented pace for us and we are achieving our goal of capitalizing on exciting science and at the same time increasing efficiency in drug discovery, which ultimately will benefit patients.”
The partners launched their first startup, Sitari Pharmaceuticals, last year. Sitari focuses on developing treatments for an intestinal disorder known as celiac disease.