InvestmentHealthTech

Cambridge-headquartered clinical stage BioTech firm Immune Regulation has closed a Series B funding round of £40.6m.

The new funding will be used in its efforts to develop new drug products that reset the immune system from a pro-inflammatory state to a balanced state, with the potential to achieve long term disease remission in autoimmune and allergic diseases.

The funding round was  led by Boston based Morningside Ventures, alongside existing shareholders including London based 24Haymarket.

The investment round is structured in two tranches and includes an option for Morningside to invest further capital at a step up to the initial two tranches.

In addition, Immune Regulation has raised £6m of advance subscription funds from private investors led by Metellus AG which has been applied to the issue of shares, bringing total aggregate funds equal £40.6 million.

“We have two clinical stage drug product candidates, ‘1805 and ‘1104, that have demonstrated impressive efficacy and safety data in phase 2a clinical studies on Rheumatoid Arthritis and Allergic Disease respectively and we are delighted to have Morningside as a partner to advance our programs,” said Jonathan Rigby, US-based Group CEO of Immune Regulation.

“This partnership with Morningside allows us to build our team in the US and the UK as we prepare for multiple phase 2 clinical studies for both of our lead assets. In addition, we are progressing towards a clinical evaluation of ‘1104 to treat COVID-19 related Acute Respiratory Distress Syndrome (ARDS).”

Isaac Cheng MD of Morningside Ventures will join the board following the funding.

Cheng said: “After extensive due diligence, Morningside concluded that Immune Regulation has drug products with significant potential to treat autoimmune and allergic diseases.