Startup Iambic Raises $100M for Clinical Trials of AI-Discovered Cancer Drugs

Iambic has encouraging early clinical data for its lead program, a breast cancer drug that could offer advantages over other therapies in its class. Now the biotech has $100 million to support further clinical development of that drug candidate and two more in its pipeline.

The lead program, IAM1363, is a small molecule designed to inhibit the protein HER2, which can drive cancer growth when amplified or mutated. The Iambic drug is designed to be selective to this target, avoiding toxicity from hitting another target called EGFR. During the recent European Society of Medical Oncology conference in Berlin, San Diego-based Iambic presented Phase 1/1b data showing anti-tumor activity in patients who have already received other therapies for their cancers. Results also showed a favorable safety profile. Following the presentation, Iambic announced a breast cancer research collaboration with Jazz Pharmaceuticals focused on evaluating IAM1363 in combination with Jazz’s HER2-targeting drug zanidatamab, brand name Ziihera. The FDA approved this bispecific antibody last year as a treatment for advanced cases of HER2-positive biliary tract cancer.

Iambic’s drugs come from a technology platform that uses artificial intelligence to identify small molecules that offer better safety and efficacy. The startup’s new capital will also support plans to bring two other cancer drug candidates into the clinic, one a selective dual inhibitor of CDK2 and CKD4 and the other an allosteric inhibitor of KIF18A.

Disclosed investors in Iambic’s latest financing include Abingworth, Alexandria Venture Investments, Alumni Ventures, ARK, Ascenta, Catalio, Everbright Biofund, Freeflow Ventures, Illumina Ventures, Mubadala, Pegasus Tech Ventures, Qatar Investment Authority, Regeneron Ventures, Sequoia, Tao Capital Partners, Terra Magnum Capital Partners, Wilson Sonsini Goodrich & Rosati.

Here’s a recap of other recent biotech financings:

—Gate Bioscience unveiled $65 million to advance development of a new class of drugs that stop disease-causing proteins at their source — the cells where they are produced. The Brisbane, California-based startup says its oral small molecule, which it calls molecular gates, block secretory channels in cells, preventing a disease-causing protein from entering circulation. That protein is eventually degraded by the cell. Specific diseases remain undisclosed, but Gate said it will use the proceeds to advance lead programs through late-preclinical development and into Phase 1 testing. Forbion led Gate’s Series B financing. Eli Lilly, which entered a drug discovery partnership with the startup over the summer, also participated in the financing.

—Neok Bio emerged from stealth with $75 million to support development of next-generation bispecific antibody drug conjugates for cancer. The ADCs of Palo Alto, California-based Neok are bispecific antibodies engineered to go after two unique pairs of cancer targets. Specific targets were not disclosed; the biotech said it will use the funding to advance two programs into the clinic in mid-2026. South Korea-based ABL Bio was the principal investor in Neok’s Series A financing.

—Azalea Therapeutics emerged with $82 million to support development of genetic medicines made by engineering cells inside the patient. The Berkeley, California-based startup has a proprietary technology that selectively targets cells, delivering transient CRISPR-Cas9 cargo to mediate the in vivo genome editing. Third Rock Ventures led the Series A financing, which Azalea will use to advance a CD190based in vivo CAR-T therapy for B cell malignancies and autoimmune diseases through investigational new drug application-enabling studies and into the clinic. The startup is also developing a BCMA-targeted in vivo CAR-T program for multiple myeloma.

—Inherited retinal diseases therapies developer AAVantegarde Bio now has $141 million to continue clinical development of its two lead gene therapy programs. AAVB-039, which addresses the ABCA4 mutation to treat Stargardt disease, is currently in mid-stage clinical development. AAVB-081, which addresses a mutation in the MYO7A gene to treat retinitis pigmentosa secondary to Usher 1B syndrome, is in Phase 1/2 testing. New investor Schroders Capital co-led the Series B financing with earlier investors Atlas Venture and Forbion.

—Zag Bio launched, backed by $80 million to support development of a new class of autoimmune therapies. The approach of Cambridge, Massachusetts-based Zag delivers tolerizing antigens to the thymus, the gland that produces T cells and trains them to distinguish between the body’s cells and foreign bodies. Lead program ZAG-101 is a bifunctional antibody that delivers pancreatic beta cell antigens to prevent or delay the onset of type 1 diabetes. Zag was founded and incubated by Polaris Partners, which co-led the startup’s Series A financing with the T1D Fund.

—Hemab raised $157 million to support a registration-enabling study for sutacimig as a prophylactic treatment for Glanzmann thrombasthenia, a life-threatening bleeding disorder. The funding will also support expanding this drug to clinical testing in Factor VII deficiency and continued early clinical development of HMB-002 for von Willebrand disease. Sofinnova Partners led Hemab’s Series C financing. Hemab launched in 2023 backed by $135 million in Series A financing.

—Faeth Therapeutics secured $25 million to support Phase 2 testing of serabelisib and sapanisertib, a drug combination called “PIKTOR,” alongside the chemotherapy paclitaxel as a treatment for endometrial cancer. In Phase 1b testing, the Austin, Texas-based biotech reported this drug regimen led to an 80% overall response rate and median progression-free survival of 11 months versus the historical three to four months with chemotherapy alone. Faeth said the “strategic raise,” led by S2G Investments, brings its funding total to $92 million.

—Bexorg raised $42.5 million to expand and optimize its technology for discovering central nervous system disorder drugs. The Yale University spinout’s platform uses AI to analyze data that comes from testing drugs in human brains of recently deceased donors. Engine Ventures led Bexorg’s Series A financing.

—Cancer drug developer Tubulis secured €308 million (about $301 million) to support TUB-040, an antibody-drug conjugate currently in Phase 1/2a testing for platinum-resistant ovarian cancer as well as relapsed or refractory non-small cell lung cancer. With the new capital, the Munich, Germany-based company plans to test its drug as an earlier line of therapy and in other tumor indications. Venrock Healthcare Capital Partners led Tubulis’s Series C financing. Tubulis last raised money in 2024, a €128 million Series B2 financing.

—Cancer drug developer Step Pharma raised €38 million (about $43.6 million) for clinical testing of dencatistat. This oral small molecule is designed to inhibit CTPS1, a protein that’s key to a pathway used by cancers for DNA synthesis and cell proliferation. A Phase 1/2 study is underway in relapsed/refractory T or B cell lymphoma; a separate Phase 1 study is ongoing in solid tumors. New investor V-Bio Ventures led the Series C financing for Saint-Genis-Pouilly, France-based Step Pharma.

—Veradermics raised $150 million to support pivotal testing of VDPHL01, an extended-release oral formulation of minoxidil, a hair regrowth drug that was originally developed for topical application to the scalp and is currently available over the counter under the brand name Rogaine. A Phase 3 test enrolling both men and women is evaluating the drug as a treatment for pattern hair loss. SR One led Veradermics’s Series C financing.

—Mission Therapeutics secured $13.3 million for Phase 1b testing of its drug, MTX325, in patients with Parkinson’s disease. The oral, brain-penetrating drug is designed to inhibit USP30, an enzyme that removes the molecular tag that marks a mitochondria for disposal by built-in cellular systems. Inhibiting this target is intended to promote cellular disposal of dysfunctional mitochondria that contribute to Parkinson’s. Preclinical research supporting this approach was published in Nature Communications in 2023. Cambridge, England-based Mission’s financing was led be earlier investors that include Pfizer Venture Investments, Sofinnova Partners, Roche Venture Fund, SR One, IP Group and Rosetta Capital.

—Startup Excellergy launched with $70 million to develop a new class of allergy drugs. Compared to existing allergy medicines, Excellergy’s effector cell response inhibitors employ three mechanisms of action for potential faster onset of action and more complete allergic control. The Palo Alto, California-based startup plans to advance its lead asset to the clinic in early 2026. Samsara BioCapital led Excellergy’s Series A financing.

—Kailera Theraputics raised $600 million, mainly for late-stage testing of KAI-9531, a weekly injectable obesity drug designed to hit GLP-1 and GIP. The blockbuster Eli Lilly weight management drug Zepbound hits those targets, but Kailera aims to show its drug can offer greater weight loss. Bain Capital Private Equity led Kailera’s Series B financing. Kailera launched last year backed by $400 million in financing.

—Cardiovascular drug developer Kardigan unveiled $254 million for its three lead programs. Danicamtiv is a cardiac myosin activator targeting genetic dilated cardiomyopathy (DCM) driven by sarcomeric variants. In September, Kardigan presented positive Phase 2a data during the Heart Failure Society of America Annual Scientific Meeting. The other programs are tonlamarsen, an angiotensinogen-targeted bridging therapy to interrupt the dangerous cycle of acute severe hypertension (ASH); and ataciguat, an oral soluble guanylate cyclase (sGC) activator in development as a treatment for calcific aortic valve stenosis (CAVS). The Series B round follows Kardigan’s launch in January with $300 million in Series A financing.

—Axial Therapeutics rebranded as Vertero Therapeutics and unveiled $20 million. The startup says its lead program, an oral small molecule code-named VT-5006, addresses a validated target in the gut that feeds the protein inflammation and aggregation implicated in Parkinson’s disease. Woburn, Massachusetts-based Vertero is preparing to advance VT-5006 to Phase 1 testing. Verter’s Series D financing included participation from OneVentures, Seventure, and private family offices.

—Expedition Therapeutics secured $165 million for Phase 2 testing of EXPD-101 in chronic obstructive pulmonary disease (COPD). The once-daily oral small molecule is designed to inhibit DPP1, an enzyme that plays a key role in the immune and inflammatory responses in respiratory disorders. The San Francisco-based biotech says its drug specifically targets neutrophilic inflammation, a key underlying driver of COPD. Expedition licensed EXPD-101 from China-based Fosun Pharma. Sofinnova Investments and Novo Holding co-led Expedition’s Series A financing.

—In other COPD startup news, AeroRx raised $21 million to support Phase 2b testing of AERO-007, a fixed-dose LABA/LAMA combination therapy formulated for nebulized delivery. Avalon Bioventures led the Series A financing of La Jolla, California-based AeroRx.

—Preclinical Nilo Therapeutics launched with $101 million to continue development of a new class of drugs that treat autoimmune diseases by targeting neural circuits to bring the immune system back into balance. New York-based Nilo’s science is based on the research of scientific co-founder and Columbia University Professor Charles Zuker. The Column Group, DCVC Bio, and Lux Capital led Nilo’s Series A financing.

—TORL BioTherapeutics raised $96 million in Series C financing to continue clinical testing of an antibody drug conjugate in development for ovarian cancer. The drug, TORL-1-23, is designed to target Claudin 6 (CLDN6), a protein that is highly expressed in several cancers but less so in heathy tissue. The new capital will support an ongoing pivotal Phase 2 test of this ADC in CLDN6-positive platinum-resistant ovarian cancer; data are expected in 2027. The company is also preparing a confirmatory Phase 3 test this indication expected to start in 2026.

—Cartography Biosciences raised $67 million to advance lead program CBI-1214 to clinical testing in colorectal cancer. The South San Francisco-based company’s drug is a T cell engager whose cancer target is LY6G6CD, an antigen abundant in the subtypes of colorectal cancer representing the majority of patients with this cancer. New investor Pfizer Ventures led Cartography’s Series B financing.

—OncoC4 has $50 million to apply to an internal pipeline led by AI-081, a bispecific antibody designed to go after the cancer targets PD-1 and VEGF. Such drugs have the interest of big pharma companies including Bristol Myers Squibb, Pfizer, Instil Bio, and Merck. Rockville, Maryland-based OncoC4 claims its drug has properties that improve both efficacy and safety, potentially making it best in class. AI-081 is currently in Phase 1 testing in patients with solid tumors. GBA Fund led OncoC4’s Series B financing.

—Crystalys Therapeutics launched with $205 million for Phase 3 tests of dotinurad, an in-licensed URAT1 inhibitor in development for gout. San Diego-based Crystalys aims to show safety advantages over other efforts to drug the target. The oral small molecule is already approved and commercialized in several Asian countries. Novo Holdings, SR One, and Catalys Pacific co-led Crystalys’s Series A round.

—In other gout drug news, Arthosi Therapeutics closed $153 million for two Phase 3 tests of its URAT1 inhibitor, pozdeutinurad. Both studies are fully enrolled and the company expects preliminary data in the second quarter of 2026. The San Diego-based biotech’s Series E financing was led by Prime Eight Capital Limited.

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