Boston startup looks to make a big manufacturing push with new funding round
As drug manufacturing startups gain more notoriety with investors, most notably with the recent deals surrounding Resilience, another startup is looking to take its next steps in the space on the back of a Series B raise.
Boston-based Elektrofi, which has been around since 2016, has netted a $40 million Series B round, the company announced Monday. Elektrofi is primarily focused on manufacturing several kinds of medicines including monoclonal antibodies, therapeutic proteins and other large molecule drugs.
Elektrofi CEO Chase Coffman told Endpoints News that the company has been working to develop a new way to deliver drugs, with a particular focus on antibody-based therapies. The idea is to shift the setting of care from the clinic into the home with self-administered therapies.
Coffman said that Elektrofi aims to stray from the paths of traditional biotech in the sense that the company is not developing its proprietary suite of products or pipelines.
“Instead, what we’re doing is we’re teaming up with major multinational biopharmaceutical companies … to develop new and improved at-home self-administer subcutaneous products around their assets using our delivery platform,” he said.
The company so far has managed to secure contracts with several major companies including Takeda and LEO Pharma, centered around plasma and monoclonal antibody production, respectively.
For the raise itself, Coffman said it came about very quickly with the company only marketing the raise around January, which he stressed was critical as the market gets ever more precarious for biotechs.
“There are a lot of headwinds companies like us that are trying to raise money or having to cut through,” he said. “But in the best of times, four to six months is typically the best you can hope for. So, the fact that we got this done in five months, in spite of the prevailing financial climate, I think that that’s a significant testament to the value that we’ve created as a company to this point.”
The funds will be going towards clinical development, with a portion of the proceeds going towards getting a GMP line online. Elektrofi is looking to have that running by the second half of next year. Series B cash will also help boost clinical development within the next two years. After that, the rest of the round will be about enabling the company to broaden its pipeline as well as bringing the number of employees at Elektrofi to 60 or 70 within the next 12 to 18 months.
Coffman said that the round also gives Elektrofi an “indefinite” runway as the licensing model giving the company enough funds to stay afloat. However, Coffman said that he may take the company public within roughly 24 to 36 months.
The round was led by Marshall Wace and BVF Partners, with participation from Janus Henderson Investors and Logos Capital.