Queensland biotech tops up $1 million Seed round with another $2m

Queensland biotech Lucia Bio has topped up its Seed round with an additional $2 million to take the total raised to $3m.

The startup, launched last year, is a joint venture between UK commercialisation firm Molecule to Medicine (MTM) and investor UniQuest’s QEDDI (Queensland Emory Drug Discovery Initiative) team at the University of Queensland (UQ).

The biotech’s focus is what’s know as spleen tyrosine kinase (Syk) inhibitors to treat autoimmune diseases, neuroinflammatory disorders, and hematologic malignancies. Only one Syk inhibitor has been approved, but Lucia Bio has two lead assets QED-701 and QED-121 which show potential for treating neuroinflammation (inflammatory response within the central nervous system) associated with conditions such as Alzheimer’s disease and autoimmune conditions such as hivesedicine for the treatment of these Syk dependent chronic conditions.

The Seed top up includes $1 million from the UniQuest Extension Fund (UEF), plus $1m from Uniseed-managed funds.

The funding is for the continued development of Lucia Bio’s Syk inhibitors, including broadening the therapeutic potential to the treatment of peripheral autoimmune conditions.

Lucia Bio is part of MTM’s Brisbane ecosystem,  integrated with MTM’s global drug discovery and development ecosystems of biotechs. The Syk program was initially developed at UniQuest’s QEDDI, which was established with an industry-experienced team to advance The University of Queensland’s (UQ’s) promising drug targets towards the clinic.

Dr Tom McCarthy, cofounder and chair of Lucia Bio, said the funding will maintain momentum in the program as the look to raise a Series A.

“Use of proceeds from this first syndicated round would include completion of the remaining clinical trial enabling studies and the Phase 1 clinical program for both molecules of QED701 and QED-121 that will lay a foundation for subsequent Phase 2 clinical trials proof of concept studies, with potential indications selected from certain neuroinflammatory and autoimmune conditions,” he said.

“Syk is a clinically validated target in human immunology although capitalising on the full clinical potential for Syk inhibition has been hampered by molecules without the required intersection of potency, selectivity and drug-like properties. ”

UniQuest CEO Dr Dean Moss said they’re excited by the significant clinical potential for Syk inhibitors to capitalise on the science developed by QEDDI.

“UniQuest has had the privilege to leverage world class science conducted by QEDDI, successful spin-out formation via the UniQuest IP commercialisation team, and finally investment by the UEF,” he said.

“This seed financing lays the foundation for its translation into potential innovative medicines across a wide range of conditions. We look forward to continuing to work with Tom, Kirsty and the MTM team as Lucia Bio charts a similar global clinical development trajectory, in this case based on key Australian scientific discoveries.”