US biotech Merida Biosciences has launched with $121m in Series A financing to develop therapeutics targeting disease-causing antibodies in autoimmune diseases and allergies.
The financing round was co-led by Bain Capital Life Sciences, BVF Partners, and Third Rock Ventures, with participation from GV and Perceptive Xontogeny Venture (PXV) Funds.
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The biotech is advancing a proprietary protein engineering platform to develop fragment crystallisable (Fc)-based biologics that selectively bind and eliminate pathogenic antibodies while sparing healthy components of the immune system. Merida’s therapeutics also aim to deplete the B cells responsible for producing the harmful antibodies.
Merida’s lead programme will focus on Graves’ disease, an autoimmune condition that causes the thyroid to overproduce hormones, resulting in hyperthyroidism. The company is positioning its candidate as a more targeted alternative to antithyroid drugs (ATDs), which while being standard of care (SOC), often fail to provide adequate disease control.
The company claims its approach could offer a more convenient dosing schedule and an easier route of administration compared to current and emerging treatments.
Merida is not the only biotech setting its sights on the Graves’ disease market. Immunovant is developing batoclimab, a monoclonal antibody currently in a Phase IIa trial (NCT05907668) for Graves’ disease patients who remain uncontrolled on ATDs. Interim data released in September 2024 showed a 76% response rate at 12 weeks. If batoclimab makes it to market, GlobalData projects that it will generate $872m in global sales by 2030.
GlobalData is the parent company of Pharmaceutical Technology.
In addition to Merida and Immunovant, Biohaven is developing BHV-1300, a small molecule therapy that targets and degrades immunoglobulin G1 (IgG1) autoantibodies that cause Graves’ disease. BioHaven previously announced plans to launch a Phase II study of the drug in mid-2025.
Following its lead Graves’ disease programme, Merida plans to pursue candidates for food allergies and primary membranous nephropathy, a rare autoimmune kidney disorder.
Merida will be led by CEO Adam Townsend, former COO of Apellis Pharmaceuticals and ex-Biogen executive. He will work alongside chief scientific officer Dario Gutierrez, a former executive director at MSD and current consultant at Third Rock Ventures.
“For the first time, we have the potential to precisely target the clear pathogenic drivers of an intractable set of diseases with absolute selectivity and a degree of completeness and durability that has not been achievable through any approach to date,” said Townsend in the 8 April announcement.
