GenEdit: Gene editing delivery biotech GenEdit partners with Genentech, raises another $24M

Gene editing still needs better delivery systems, more than half a dozen years after Kunwoo Lee recalls CRISPR pioneer Jennifer Doudna telling attendees at a conference that "delivery, delivery, delivery" is the key challenge to making the promising innovation a broader reality. Around that time, Lee received his biomedical engineering PhD from UC Berkeley, the famed institution where Doudna's Nobel-winning research was conducted, and in 2016, he co-founded the Bay Area biotech GenEdit in the hopes of addressing the delivery challenge. More than seven years later, his startup is announcing a collaboration with Roche's Genentech to create new nanoparticles for nucleic acid-based medicines for autoimmune diseases. The multiyear collaboration and licensing pact, disclosed Tuesday morning, comes with $15 million upfront and up to $629 million in biobucks, plus tiered royalties, should any products receive approval. Eli Lilly-backed GenEdit also announced a $24 million Series A1 on Tuesday. The financing comes a little over two years after the biotech disclosed a $26 million Series A and about 23 months after it announced a neuromuscular partnership with Sarepta. Lee declined to provide an update on the progress with Sarepta. GenEdit uses hydrophilic nanoparticles rather than the lipid nanoparticles made famous by Covid-19 vaccines. The biotech hopes its research can lead to safer medicines, lower manufacturing costs than the main delivery method of the viral-based AAV approach, and redosable treatments, unlike most gene therapies that are one-time drugs. The startup said its polymer nanoparticles can deliver a variety of payloads, including mRNA, siRNAs or other nucleic acids and enzymes needed for gene editing. It's one of a few biotechs looking to create non-viral approaches to genetic medicines. Moderna has expanded its presence in the space in recent quarters, while a few startups have shuttered. Others, like Feng Zhang's Aera Therapeutics, are taking another angle to expand gene editing's potential: viral-like approaches. GenEdit's internal research has an emphasis on neurology, Lee said in an interview, noting the biotech will have more clarity on its clinical entry timeline at a later date. The biotech, based out of Lilly's Gateway Labs in South San Francisco, also conducts research in immunology, which is where the Genentech tie-up comes into play. James Sabry, who leads Roche's pharma partnering, said in a statement that GenEdit's tools have the "potential to reshape treatment paradigms." "The current way we are addressing this disorder is bringing a hammer and then completely shut down a part of the pathway," Lee said, referring to the landscape of autoimmune disorders. "Now, there are new ideas coming, with cell therapy approaches and more of the antigen-specific treatments. If we can deploy a nucleic acid therapy, we will have a much better way to treat autoimmune disorder." The Series A1 financing included existing investors Lilly, Sequoia Capital, Korea Investment Partners, Woori Venture Partners, DAYLI Partners, KB Investment, IMM Investment and TIMEFOLIO Asset Management. New financial backers include KDB Silicon Valley, Mirae Asset Venture Investment, ACVC, Pathway Partners, LoftyRock Investment, Terra VC, K2 Investment, Dong-A ST, KIMCO and Huons.