Kailera Therapeutics has launched into the increasingly crowded obesity space with a portfolio of assets acquired from China and $400 million in series A funds.
The Massachusetts- and California-based biotech is led by former Cerevel Therapeutics CEO Ron Renaud. Kailera may only be stepping into the spotlight today, but it secured the ex-China rights to four GLP-1 drugs from Jiangsu Hengrui Pharmaceuticals back in May.
Top of the pile is HRS9531, now rebranded as KAI-9531, an injectable GLP-1/GIP receptor dual agonist that Kailera said has already demonstrated “compelling results” in phase 2 trials for obesity and Type 2 diabetes in China. There is also another clinical-stage asset in the form of an oral small molecule GLP-1 receptor agonist, followed by a once-daily oral GLP-1/GIP receptor dual agonist and an injectable GLP-1/GIP/glucagon receptor tri-agonist.
Kailera will be joining an ever-growing list of Big Pharmas and small biotechs hoping that some combination of GLP-1 and GIP agonists can carve out space in an obesity market currently dominated by Novo Nordisk's Wegovy and Eli Lilly's Zepbound. But seasoned investors clearly see potential in the recently acquired assets.
The $400 million series A was co-led by Atlas Venture, Bain Capital Life Sciences and RTW Investments, with participation from Lyra Capital.
“In this period of rapid innovation in the metabolic space, I believe that Kailera is poised to make an impact beyond the current market leaders,” Kailera’s CEO Renaud said in a Oct. 1 release.
“With a clinically-advanced, differentiated pipeline, a talented and experienced team with a track record for building companies with lasting impact, and the support of a world-class investor syndicate, we are uniquely positioned to advance innovative therapies that have the potential to meaningfully impact both quality of life and overall health for many people,” he added.
Renaud oversaw neuroscience biotech Cerevel in the months leading up to its acquisition by AbbVie and has also served as a senior adviser at Bain Capital. He’s joining by Cereval alumni in the form of Kailera’s chief operating and chief business officer Paul Burgess, while former Latigo Biotherapeutics CEO Scott Wasserman, M.D., has been named chief medical officer.
Meanwhile, former Gilead Sciences CEO John Milligan, Ph.D., is chairing Kailera’s board of directors.