Immunology and inflammation biotechnology company Alumis has recently entered the public markets, securing $250 million in pivotal funding to advance clinical trials of its leading drug candidate. The company aims to demonstrate the efficacy of its small molecule in treating plaque psoriasis, a competitive area currently targeted by several pharmaceutical giants. Alumis’ entry into Nasdaq followed the offering of approximately 13.12 million shares at $16 each, raising $210 million. Additionally, they conducted a private sale of 2.5 million shares at the same price to one of their major investors, adding another $40 million to their funds.
Alumis is engaged in the development of drugs that inhibit TYK2, an enzyme integral to inflammatory signaling pathways. The first FDA-approved TYK2 inhibitor, Sotyktu by Bristol Myers Squibb, treats moderate-to-severe plaque psoriasis. Following in these footsteps, Alumis and other companies are endeavoring to produce drugs that not only target TYK2 but also offer improvements in safety and effectiveness. Among the competitors, Takeda Pharmaceutical has notably progressed to late-stage testing of its TYK2 inhibitor.
In its IPO filing, Alumis highlighted that existing TYK2 inhibitors from other companies have yet to achieve complete inhibition of the target enzyme, which they believe limits their therapeutic potential. Takeda’s trials have reported skin rashes at higher dosages of their drug. Alumis aims to address these gaps with its lead candidate, ESK-001, described as a next-generation TYK2 inhibitor capable of maximal target inhibition without safety or tolerability concerns due to its optimized properties.
ESK-001, which was initially acquired from FronThera, has entered Phase 3 testing for plaque psoriasis and is also being evaluated for systemic lupus erythematosus in a mid-stage trial. Results from the lupus study are expected by 2026. Alumis is also exploring A-005, another TYK2 inhibitor that penetrates the central nervous system, potentially treating neuroinflammatory and neurodegenerative disorders like multiple sclerosis. A Phase 1 trial for A-005 has recently commenced, with results anticipated by the end of the year.
Founded in 2021 and initially incubated by Foresite Labs, Alumis, formerly known as Esker Therapeutics, completed a $200 million Series B financing in 2022 along with a name change to better reflect its mission to “enlighten immunology.” Prior to its IPO, Alumis had raised $459.1 million in equity financing, with the most recent $259 million Series C round led by Foresite Capital in March. Foresite Capital remains the largest shareholder, followed by AyurMaya Capital Management.
The funds garnered from Alumis’s IPO and subsequent private placement are earmarked for advancing the clinical development of ESK-001 through Phase 3 trials and completing Phase 2b studies in lupus. An additional $5 million is set aside for the ongoing Phase 1 trial of A-005. The company had $133.7 million in cash as of March and plans to utilize the newly acquired capital to support these key programs and potentially bring ESK-001 to the market, pending successful trial outcomes and regulatory approvals.
Alumis’s strategic moves in the competitive field of TYK2 inhibition, bolstered by significant funding and promising drug candidates, underscore its commitment to advancing treatment options for diseases driven by inflammation.
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