AI and Obesity Research Lead Latest Biopharma Venture Capital Raises

In the first half of 2025, the biopharmaceutical industry has seen a continued flow of venture capital into startups, despite an overall downward trend in fundraising. The largest investments have centered around artificial intelligence (AI) in drug discovery and obesity treatments, highlighting the industry's focus on cutting-edge technologies and high-demand therapeutic areas.

AI-Driven Drug Discovery Dominates Funding Landscape

Isomorphic Labs, a spinout from Google's DeepMind division, secured the largest raise of H1 2025 with a staggering $600 million investment in March. The company, now valued at nearly $1.8 billion, aims to leverage AI for drug design and expects to initiate clinical trials for newly discovered molecules by year-end. Despite not disclosing specific disease targets, Isomorphic has already formed partnerships with pharmaceutical giants Eli Lilly and Novartis, potentially worth up to $3 billion in total.

Following closely is Pathos AI, which raised $365 million in a Series D round in May, bringing its total funding to $1.6 billion. The company is developing an oncology pipeline, with its lead asset, pocenbrodib, currently in a Phase Ib/IIa trial for metastatic castration-resistant prostate cancer. Pathos AI is also pursuing P-500, a brain-penetrant drug for treating brain cancers.

Obesity and Metabolism: The Next Frontier

While established pharmaceutical companies like Novo Nordisk and Eli Lilly lead the obesity treatment market, emerging players are betting on next-generation therapies. Verdiva Bio raised an impressive $411 million Series A round in January to develop a pipeline of obesity drugs. The company's portfolio includes an oral, once-weekly GLP-1 drug and two amylin assets, showcasing the industry's commitment to addressing the growing obesity epidemic.

Multispecific Antibodies and Imaging Technologies Attract Investment

Numab Therapeutics secured $227 million in an extended Series C round in January, bringing its total raise to $227 million. The company is advancing its inflammation and oncology pipeline, with a focus on multispecific antibodies. Its lead asset, NM32, is a T cell engager for solid tumors and hematological cancers.

Eikon Therapeutics, valued at $1.85 billion, added $351 million in Series D funding in February. The company is developing EIK1001, a Toll-like receptor agonist for treating advanced melanoma, which has shown promising preliminary results in clinical trials.

As the biopharmaceutical industry continues to evolve, these substantial investments underscore the sector's resilience and the ongoing interest in innovative approaches to drug discovery and development. With AI-driven research, novel obesity treatments, and advanced antibody technologies leading the way, the industry appears poised for significant advancements in the coming years.