A striking trend throughout 2023 has been the gravitational pull of significant funding toward promising biotech endeavors. This theme is further exemplified by the emergence of Aiolos Bio from stealth mode, fueled by a robust $245 million in series A financing. The biotech is surging forward with its sights set on a phase 2 trial for its lead candidate, AIO-001, designed to address severe asthma.
AIO-001, an anti-TSLP (Thymic Stromal Lymphopoietin) antibody, was licensed from Jiangsu Hengrui Pharmaceuticals, a Chinese biotech, which retains rights for the greater China market. While the financial intricacies of this licensing agreement remain undisclosed, the funding injection, according to Aiolos leadership, will be allocated in part to secure the rights to the asset. The remaining capital will be channeled into advancing the asset toward what CEO Khurem Farooq describes as a “meaningful clinical value inflection point.” The exact nature of this pivotal stage is currently under consideration.
This development reinforces the notion that “derisked” assets have an edge in attracting substantial investment within the biotech landscape, especially in a tightly constrained financial environment. Essentially, the more promising the data, the greater the allure. AIO-001 has already undergone phase 1 trials involving over 100 patients in China and New Zealand, primarily comprising healthy volunteers.
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Dr. Tony Adamis, co-founder of Aiolos, lauds the data obtained thus far, characterizing the molecule as “very potent” and effective when administered just twice a year. He confidently asserts that AIO-001 may represent the best-in-class, best-in-disease solution.
Beyond severe asthma, AIO-001 is also under investigation as a potential treatment for chronic obstructive pulmonary disorder (COPD) and chronic spontaneous urticaria (CSU). However, it’s crucial to note that research in these indications remains at the preclinical stage, with the drug exclusively administered to asthma patients thus far.
A significant point of interest for investors is that Aiolos is entering the arena with a mid-stage asset, a strategic approach that has garnered attention and backing from renowned firms like RA Capital, Atlas Venture, Bain Capital Life Sciences, Forbion, and Sofinnova. This approach aligns with a recent trend in the biotech sector, where companies have embarked on initial public offerings based on the strength of a single clinical-stage asset rather than relying on unproven scientific concepts.
Khurem Farooq, Aiolos CEO, clarified that while AIO-001 holds immense promise, the company does not intend for it to be the sole asset in its pipeline indefinitely. Aiolos will actively seek additional assets to diversify its portfolio and expand its sphere of influence. Farooq affirmed, “It’s something we’ll be actively looking at, for sure.”
