Boston Biotech Kojin Therapeutics Winds Down Operations Amid Funding Challenges

Kojin Therapeutics, a Boston-based biotech company focused on developing treatments for cancer and autoimmune diseases, has announced it will cease operations. The company, which raised $60 million in a Series A funding round in 2021, cited four primary funding challenges as the reason for its closure.

Funding Hurdles and Market Dynamics

Kojin's decision to wind down comes amid a challenging environment for pre-clinical therapeutic companies. The biotech highlighted a lack of investor interest in financing pre-clinical stage companies, particularly those working on novel biology in the cancer space. This sentiment reflects broader market trends, where early-stage biotechs are finding it increasingly difficult to secure funding.

Adding to the company's struggles was the lack of support from four of its five largest initial investors. While Kojin did not name specific investors, its 2021 funding round included backing from notable firms such as Polaris Partners, Newpath Partners, Cathay Health, Leaps by Bayer, and AbbVie.

Scientific Progress and Leadership Changes

Despite the funding challenges, Kojin reported making "striking progress" in developing first-in-class, small molecule ferroptosis inducers for potential use in cancer and autoimmune diseases. The company's focus on iron-dependent cell death, or ferroptosis, was aimed at addressing drug-resistant cancers and other conditions.

Leadership changes marked Kojin's short history. Initially led by Polaris' Amir Nashat as acting CEO and former Biogen executive Susan Langer as acting president, the company brought on ARIAD Pharmaceuticals founder Harvey Berger, M.D., as CEO in early 2024. However, these leadership transitions came too late to salvage the company's prospects.

Lessons Learned and Industry Implications

Kojin's closure offers several valuable lessons for the biotech industry. The company acknowledged that earlier leadership changes and a refocus of available funds could have altered its trajectory. Additionally, Kojin emphasized the importance of scientific rigor, experience, and focus in generating drug candidates, as well as the need for fiscal responsibility in biotech startups.

The biotech's experience underscores the critical nature of timing in the industry, both in terms of scientific progress and market conditions. As Kojin winds down over the coming months, its story serves as a cautionary tale for other pre-clinical stage companies navigating the complex and often unforgiving landscape of biotech financing and drug development.