Merida Biosciences Launches with $121M Series A to Tackle Autoimmune and Allergic Diseases

Merida Biosciences, a new player in the biotech arena, has emerged with a substantial $121 million Series A funding round to develop precision treatments for autoimmune and allergic diseases. The company's innovative approach leverages a proprietary platform to produce Fc biotherapeutics, aiming to selectively target and eliminate disease-causing autoantibodies without broad immunosuppression.

Targeting Graves' Disease with Novel Fc Biotherapeutics

Merida's lead program focuses on Graves' disease, an autoimmune disorder affecting the thyroid gland. The company's Fc biotherapeutics are designed to precisely target, neutralize, and eliminate the autoantibodies responsible for the condition, potentially offering a less intrusive alternative to current treatments such as thyroid surgery or radioactive iodine therapy.

The startup's approach involves creating antibody-like molecules based on the Fc fragment of antibodies. These agents can redirect pathogenic autoantibodies to specialized liver cells for degradation and block B cells to prevent the production of new autoantibodies. Merida's Graves' disease program is currently in the IND-enabling stage, with the potential to restore healthy thyroid hormone activity without directly targeting the organ itself.

Expanding Pipeline and Strong Investor Backing

Beyond Graves' disease, Merida is exploring applications of its technology in IgE-mediated allergic diseases and primary membranous nephropathy. Both programs are in pre-clinical proof-of-concept studies, showcasing the platform's versatility across different autoimmune and allergic conditions.

The company's impressive $121 million Series A round was led by Third Rock Ventures, which initially seeded Merida in 2022. Additional backing came from prominent investors including Bain Capital Life Sciences, BVF Partners, GV, and PXV Funds. This substantial financial support positions Merida as a formidable entrant in the highly competitive immunology and inflammation (I&I) field.

Rising Competition in the Autoimmune and Allergy Space

Merida's launch comes amidst increasing activity in the I&I sector. Recent entrants include Hillstar Bio, which debuted in late March with a $67 million Series A, focusing on selectively depleting disease-causing cells. Similarly, Bambusa Therapeutics entered the field in February with $90 million in funding to develop bispecific antibodies for immunological and inflammatory conditions.

The surge of interest in this area extends to big pharma as well. In March, Sanofi made a significant investment in its immuno pipeline, acquiring Dren Bio's bispecific antibody DR-0201 for $600 million upfront, with potential milestone payments of up to $1.3 billion. This asset is currently undergoing a Phase I basket trial for autoimmune rheumatic diseases, further highlighting the industry's focus on innovative approaches to autoimmune disorders.