Vor Biopharma Pivots to Autoimmune Disease with New CEO and $175M Financing

Vor Biopharma, a Massachusetts-based biotech company, has announced a significant shift in its strategic focus, moving away from oncology to target autoimmune diseases. This transformation comes with new leadership and a substantial financial boost, marking a pivotal moment for the company.

New Leadership and Strategic Redirection

Jean-Paul Kress, former leader of MorphoSys, has been appointed as Vor's new CEO, replacing Robert Ang, who will remain as an adviser through October. Kress expressed enthusiasm about the company's new direction, stating, "I am absolutely thrilled to be leading Vor Bio as we transform the company to become a major player in autoimmune disease treatment."

This leadership change coincides with Vor's decision to license rights to an immune disease drug from Chinese biotechnology company RemeGen. The drug, telitacicept, is already approved in China and is currently in Phase 3 testing for generalized myasthenia gravis in the U.S., Europe, and South America.

Significant Financial Investment

To support its new strategy, Vor has secured $175 million through a private investment in public equity (PIPE). This financing round involved several prominent investors, including RA Capital Management, Forbion, and Venrock Healthcare Capital Partners. Additionally, Vor will pay RemeGen $45 million upfront and $80 million in warrants to purchase common stock in exchange for the rights to telitacicept.

Focus on Autoimmune Diseases

Telitacicept targets cytokines known as BAFF and APRIL, which have been the focus of other recent dealmaking in the pharmaceutical industry. The drug is being developed for multiple autoimmune conditions, including generalized myasthenia gravis, systemic lupus erythematosus, and rheumatoid arthritis.

This strategic pivot represents a significant departure from Vor's original focus on leukemia treatments. The company, founded nearly a decade ago by PureTech Health and oncologist Siddhartha Mukherjee, had previously been developing cell therapies called trem-cel and VCAR33. However, challenges in recent years led to a dramatic restructuring in May, resulting in the layoff of 95% of its employees and the winding down of clinical operations.

The pharmaceutical industry has shown increasing interest in drug candidates from Chinese biotechs like RemeGen. Leerink Partners analyst David Risinger noted, "Global biopharma companies can increasingly look to China as a cost-effective source of innovation, particularly for validated targets and rapid generation of proof-of-concept data."

Vor's decision to reinvent itself with a Phase 3-ready drug candidate contrasts with the approach taken by some struggling biotechs, which have opted to wind down operations and return cash to shareholders. The market has responded positively to Vor's new strategy, with the company's shares nearly doubling to trade around $1 per share following the announcement.