Rough­ly four and half years af­ter se­cur­ing $26.5 mil­lion in a Clarus Ven­tures-led Se­ries A, San Fran­cis­co biotech Ima­go Bio­Sciences has an­oth­er $40 mil­lion in the bank to de­vel­op its bone mar­row-fo­cused ther­a­py, cour­tesy a fi­nanc­ing round led by Omega Funds.

The pri­vate­ly-held drug de­vel­op­er is tar­get­ing the man­age­ment of pro­lif­er­a­tive dis­eases of the bone mar­row — in­clud­ing acute myeloid leukemia (AML), myelodys­plas­tic syn­drome, poly­cythemia ve­ra, myelofi­bro­sis and es­sen­tial throm­bo­cythemia — that trig­ger un­bri­dled bone mar­row cell growth, dri­ven by ge­net­ic mu­ta­tions.

Its lead drug IMG-7289 is de­signed to in­hib­it LSD1, an en­zyme reg­u­lat­ing cy­tokine ex­pres­sion that is con­sid­ered cru­cial for sus­tain­ing self-re­new­al in can­cer stem/prog­en­i­tor cells, par­tic­u­lar­ly neo­plas­tic bone mar­row cells. It is be­ing test­ed in a Phase II myelofi­bro­sis study, and last year com­plet­ed a Phase I AML/MDS study. The cap­i­tal in­jec­tion will be used to shep­herd the ex­per­i­men­tal drug through the com­ple­tion of Phase IIb stud­ies, the com­pa­ny said on Thurs­day.

The name Ima­go in­vokes the fi­nal and ful­ly de­vel­oped stage of an in­sect af­ter its meta­mor­pho­sis, and the com­pa­ny is hop­ing to do the same by trans­lat­ing sci­en­tif­ic the­o­ry in­to new treat­ments.

Oth­er in­vestors par­tic­i­pat­ing in the round in­clude ex­ist­ing in­vestors Fra­zier Health­care Part­ners, Am­gen Ven­tures, and MRL Ven­tures Fund as well as High­Light Cap­i­tal, Phar­maron and Green­spring As­so­ci­ates. Omega Funds’ Di­na Chaya from is slat­ed to join Ima­go’s board.

An­oth­er com­pa­ny look­ing in­to the po­ten­tial of in­hibit­ing LSD1 is In­cyte $IN­CY, which is test­ing its drug IN­CB059872 for Ew­ing sar­co­ma and oth­er can­cers.

Gilead recently decided to pull two indications for its cancer drug Zydelig — in relapsed follicular B-cell non-Hodgkin lymphoma (FL) and relapsed small lymphocytic leukemia (SLL) — after failing to complete the confirmatory trials required as part of the accelerated approvals from 2014.

“As the treatment landscape for FL and SLL has evolved, enrollment into the confirmatory study has been an ongoing challenge,” Gilead said in a statement, noting it formally notified the FDA of its decision to voluntarily withdraw these indications.

While the US biosimilars industry has generally been a disappointment since its inception, with FDA approving 33 biosimilars since 2015, just a fraction of those have immediately followed their approvals with launches. And more than a handful of biosimilars for two of the biggest blockbusters of all time — AbbVie’s Humira and Amgen’s Enbrel — remain approved by FDA but still have not launched because of legal settlements.