Chris Garabedian's first Xontogeny company, Landos Biopharma, preps a nine-figure IPO as lead program heads to PhIII
Landos Biopharma, the lead company in the portfolio of Chris Garabedian’s fund with Perceptive, is preparing to go public about a year and a half since its last raise. But the company’s last data dump missed on all its primary endpoints in IBD despite “positive” signs it measured up with standard of care — will investors be impressed?
The former Virginia Tech spinout filed for a $100 million IPO late Wednesday, aiming to take its AI-based precision medicine platform and lead program to Nasdaq. Once the biotech prices, it will trade on the ticker $LABP.
Though 2020 and its record IPO fundraising totals have come to a close, 2021 is maintaining some of that momentum — at least through the first two calendar weeks. Last Friday, Cullinan Oncology netted an upsized $249.9 million raise, while Gracell Biotechnologies hauled an impressive $209 million raise.
Also on Wednesday, Sana Biotechnology penciled in an estimated $150 million raise, though the backers at Flagship and ARCH Ventures are likely shooting for something much higher.
So what’s got Landos excited to join the party? The biotech was tight-lipped in its S-1 filing, declining to detail how it would use funds from the raise. But earlier this month, the company revealed data they described as positive from a Phase II proof-of-concept trial in its lead compound, BT-11, even though none of the p-values hit the magic 0.05 figure for statistical significance.
The idea behind the program is a pathway that Virginia Tech professor Josep Bassaganya-Riera has studied for more than a decade known as Lanthionine Synthetase C-Like 2 (LANCL2), a membrane receptor shown to modulate immunological mechanisms associated with autoimmune diseases. BT-11 is one of three Landos compounds aiming to take advantage of the pathway, with lead indications in ulcerative colitis and Crohn’s disease.
Landos aimed to compare BT-11 to placebo in 198 patients with mild to moderate UC in a randomized, double-blind trial. Patients were randomized evenly between two dosing cohorts and the control arm, and clinical remission was analyzed over a 12-week induction period.
Researchers said they saw a “positive trend” in absolute clinical remission rates for the 1,000 and 500 mg doses compared to placebo, noting rates of 31.8%, 30.3% and 22.7%, respectively. Those amounted to disappointing p-values of p=0.340 and p=0.235. Landos noted, however, that the resulting placebo-adjusted clinical remission rates of 9.1% and 7.6% were consistent with standard of care treatments in both mild to moderate and moderate to severe UC.
That has prompted the company to prepare a Phase III trial for this year, aiming to evaluate maintenance of clinical remission after a year following the 12-week induction period. There are also plans to launch a Phase II trial of BT-11 in moderate to severe Crohn’s disease in the first half of 2021.
Landos also has plans for BT-11 in eosinophilic esophagitis, psoriasis and atopic dermatitis. The company has advanced a second program into the clinic in IBD as well, launching a Phase I study of NX-13 last July.