Immunological disorders can be treated with therapies that broadly suppress the immune system, but drug research is increasingly taking a precision medicine strategy that goes after specific targets. Electra Therapeutics is developing a new class of medicines designed to selectively target certain immune cells responsible for excessive immune responses. With a lead program already in pivotal testing in a rare inflammatory disorder with no approved therapies, the company has joined the public markets, raising $350 million for clinical research.
“By replacing broad immunosuppression with selective elimination of principal cells that drive disease, we believe our approach can do for immune-mediated diseases what precision oncology has done for cancer, transforming the treatment paradigm for patients,” Electra said in its IPO filing.
Electra had set preliminary IPO terms of more than 21.6 million shares in the range of $14 and $16 each. The company ended up boosting the deal size to more than 23.3 million shares priced at $15 apiece. Those shares began trading on the Nasdaq Friday under the stock symbol “ETRA.” Electra finished its first day as a public company at $13.25 per share, down nearly 12% from the IPO price.
Automation Didn’t Dehumanize Care. Bad Systems Did.
We have the opportunity to design systems that give people greater capacity for the work where human presence matters most: listening, understanding, reassuring, deciding, and caring.
The research of South San Francisco-based Electra focuses on signal regulatory proteins (SIRPs), a family of receptors expressed on specific types of immune cells. SIRPs play a role in keeping immune responses in balance. But the expression of SIRPs can increase as immune cells become activated, making them a good target for immunology drugs, Electra said in the filing.
Electra’s lead drug candidate is ipsoprubart, an antibody designed to selectively bind to SIRP-expressing cells, depleting them. This drug is intended to specifically go after SIRP-expressing myeloid cells and T cells, which are the main drivers of cytokine storm, an excessive immune response in hyperinflammatory conditions. Ipsoprubart is a pan-SIRP-targeting antibody whose lead indication is secondary hemophagocytic lymphohistiocytosis (sHLH). The excessive immune response from sHLH can spark life-threatening multi-organ failure. This disorder can be triggered by cancer, immunotherapy, or an infection.
Standard sHLH treatment includes corticosteroids, which broadly suppress the immune system. Other treatments include off-label use of drugs that inhibit certain cytokines. The Sobi antibody drug Gamifant has FDA approval for primary HLH and macrophage activation syndrome in Still’s disease, a regulatory decision that does not specifically encompass sHLH.
Ipsoprubart was internally discovered by Electra, coming from a technology platform for developing SIRP-binding antibodies. In Phase 1b testing in patients with malignancy-associated HLH, which is the largest subset of sHLH patients, Electra reported 100% overall survival and a 100% overall response rate measured at eight weeks. The study drug was generally well tolerated.
From Blind Spots to Better Outcomes: How SNF Data Transparency Strengthens LTSS
What if health plans could identify member decline before an avoidable hospitalization occurs? Real-time clinical visibility into long-stay SNF members uncovers risk earlier and drives better outcomes.
The program has since advanced to a Phase 2/3 study in newly diagnosed, treatment-naïve sHLH patients. Those study participants will be compared to the natural history of sHLH patients. Trial enrollment is expected to be complete in the second half of 2027. Targeting SIRPs may have additional applications for treating cancer. A Phase 1 study is underway evaluating the drug in T cell and natural killer cell malignancies; preliminary data are expected in the second half of next year.
The next Electra program is ELA822, an antibody designed to selectively deplete activated T cells expressing SIRP gamma. ELA822’s Phase 1 test in healthy volunteers is expected to post data in the first half of 2027. If successful, the company plans to advance this drug to a Phase 1/2 study in T cell-mediated disorders in mid-2027.
Electra formed in 2018 as a subsidiary of Star Therapeutics, a startup creator focused on rare diseases. Star was founded by veterans of True North Therapeutics. Under Sanofi, True North’s former lead asset received FDA approval in 2022 as the first treatment for the rare autoimmune disorder cold agglutinin disease. Electra’s CEO is Kathy Dong, whose experience includes senior roles at True North and Star.
Both Star and Electra remained stealthy until 2022, when the companies revealed Electra’s $84 million Series B round led by Westlake Village Biopartners (now Westlake Biopartners) and OrbiMed. The following year, Electra spun out of Star, ending its direct affiliation with its former parent, the company said in the filing.
Since its formation, Electra said it had raised about $300 million in private financing, most recently a $183 million Series C round last fall co-led by Nextech and EQT Life Sciences. According to the filing, Westlake is Electra’s largest shareholder with a 10.4% post-IPO stake followed by the 9.1% owned by OrbiMed. As of the end of June, Electra reported its cash position was $97.7 million.
According to the filing, Electra plans to spend about $220 million to continue Phase 2/3 development of ipsoprubart, taking the molecule through the readout of preliminary data and supporting a potential FDA submission as well as commercialization preparation in sHLH. Another $25 million will fund the ongoing Phase 1 test of the drug in T/NK cell malignancies. Electra has also budgeted $50 million for ELA822’s Phase 1 and Phase 1/2 trials. The company estimates its capital will last into 2029.
Marea’s Merger Brings the Endocrine Disorder Biotech to the Public Markets
In other biotech-related public market developments, Marea Therapeutics reached a deal to go public by merging with Nasdaq-listed Lisata Therapeutics. Along with the business combination, Marea said it will raise $225 million in a private placement.
South San Francisco-based Marea is a clinical-stage biotech developing what could become first-in-class therapies for cardioendocrine disorders. Lead program MAR001 is an antibody inhibitor of ANGPTL4, a protein abundant in adipose tissue. Blocking this target is intended to augment lipoprotein lipase activity and lower triglycerides, a type of fat that circulates in the blood.
MAR001 has reached Phase 2a testing for severe hypertriglyceridemia (sHTG). This drug could provide an alternative to Tryngolza, an Ionis Pharmaceuticals antisense oligonucleotide that in June became the first FDA-approved therapy for sHTG. Arrowhead Pharmaceuticals could be next. In July, the biotech reported its RNA interference drug Redemplo met the goals of its pivotal test in sHTG; an FDA submission is planned by the end of this year.
Another Marea antibody, MAR002, is a growth hormone receptor antagonist in early clinical development for acromegaly. The endocrine disorder stems from excess production of growth hormone. Marea contends its antibody could offer advantages over the limited number of acromegaly products currently available to patients.
When the merger closes, Marea stockholders prior to the transaction will own about 59.4% of the combined company’s stock while investors in the private placement will own about 38.07%. Lisata shareholders prior to the merger will own about 2.39% of the combined company.
Hearing Loss Biotech Sensorion Eyes a U.S. Stock Listing
Montpelier, France-based Sensorion is preparing for a possible U.S. stock market debut. The hearing loss biotech already trades on the Euronext Exchange under the stock symbol “ALSEN.” Last week, Sensorion announced the confidential submission of a draft registration statement with the U.S. Securities and Exchange Commission.
SENS-601, Sensorion’s lead program, is a gene therapy in development for patients who have lost hearing due to mutations in the GJB2-GT gene. SENS-401 is an oral small molecule in development for sudden sensorineural hearing loss. The biotech is exploring partnering options for this asset.
Sensorion’s former lead program, SENS-501, was a gene therapy in development for hearing loss due to OTOF gene mutations. After Regeneron Pharmaceuticals’ gene therapy Otarmeni won FDA approval in this indication this past spring, Sensorion announced it would discontinue development of SENS-501, making SENS-601 the lead program. Earlier this month, Sensorion announced it received authorization to begin a Phase 1/2 test of SENS-601 in France.
Photo: Getty Images