Market conditions continue to present challenges for startups trying to raise funds. Some of these companies may be suitable for Sanofi's corporate venture capital arm, which has invested $625 million.
With new capital commitments, Sanofi says Sanofi Ventures will continue to focus on the main therapeutic areas of pharmaceutical companies: immunology, rare diseases, neurology and vaccines. Sanofi Ventures have included financing for participation in RNA interference therapy developer Atalanta Therapeutics, rare disease startup glycine and neuroscience biotechnology drainage therapy.
“By enhancing our investment capabilities, we are accelerating our ability to bring next-generation therapies that improve people's lives while building valuable partnerships across the healthcare ecosystem,” Sanofi CEO Paul Hudson said in a prepared statement.
Sanofi founded Sanofi Ventures in 2012. Since then, the Big Pharma investment arm has deployed over $800 million in early stage companies working in biotech and digital health. Sanofi said that with the announcement of the new capital, the total assets being managed by Sanofi Ventures is now more than $1.4 billion.
With the third quarter of 2025 coming to an end, here are some reviews of some recent biotech financing:
– Sparrow Pharmaceuticals now has $95 million to fund Clofutriben's ongoing mid-term clinical test as a treatment for type 2 diabetes with elevated cortisol. The drug is a once-daily oral HSD-1 inhibitor designed to regulate the production of intracellular cortisol in key metabolic tissues. Biotech, based in Portland, Oregon, says this novel approach offers the potential to supplement existing diabetes medications. Sparrow expects the Phase 2B study to generate data in 2027. RA Capital Management and Forbion co-led Sparrow's Series B financing.
– Colloidal Biosciences Inc. launched for $100 million to support early clinical development of OLN324, an experimental drug used in wet forms of age-related macular degeneration or diabetic macular edema. Antibody drugs targeting the protein VEGF are the standard treatment for these eye diseases. Ollin's drug is a bispecific antibody designed to target VEGF, another target called Ang2. OLN324 is being developed in collaboration with innovative biologics based on Shanghai.
A Phase 1B study has been fully recruited and OLN324 is being compared with the Genentech drug Faricimab of Vabysmo to show potential areas of anatomy and durability differentiation. Preliminary results are expected in the first quarter of 2026. Olin said the financing was led by Arch Venture Partners, Mubadala Capital and Learn Capital.
– Avenzo Therapeutics earned $60 million in financing to continue developing its small molecule and antibody drug conjugates for cancer. Lead Program AVZO-021 is a small CDK2 molecular inhibitor in Phase 1 testing for the treatment of advanced solid tumors and a combination of drugs for the treatment of HR-positive and HER2-negative metastatic breast cancer. Avenzo's Series B financing is led by Orbimed and Sr One.
– Seed Therapy received $30 million in preparation for clinical testing through Lead Program ST-01156 (RBM39's Brain Osmotic Glue Degrader). The drug will be used for Ewing sarcoma and other RBM39-dependent cancers. Prussia's Biotechnology, the state of Pennsylvania, describes the new capital as a Series A-3 financing.
– Dualitas Therapeutics was initiated from invisible with $65 million to support the development of its bispecific antibodies against autoimmune diseases. The drug from the South San Francisco-based startup comes from its dual-screen platform technology, which screens bispecific combinations to find combinations that are expected to take drugs. Dualitas' Series A-Series, led by Versant Ventures and Qiming Venture Partners USA.
– Allrock Bio announced $50 million to the interim clinical test of ROC-101 for pulmonary hypertension and pulmonary hypertension and interstitial pulmonary disease. The drug is an oral small molecule inhibitor of Rock1 and Rock2 enzymes and has been licensed from SANOFI. The results of the Phase 1 are scheduled to be demonstrated at the European Respiratory Society Conference in Amsterdam at the end of September. Versant Ventures and Westlake Biopartners lead Allrock's Series A Financing
– As the company opened new facilities in Boston, San Francisco and London to raise $235 million for Leila Science to raise $235 million. Lila said the facilities will bring together artificial intelligence, software and hardware to perform simulations and experimental experiments in fields including materials science, medicine and agriculture. Lila appeared from stealth in March, revealing $200 million in seed financing. New Capital is a Series A round led by Braidwell and Collective Global.
– Gene Therapy developer Kriya Therapeutics received $320 million to continue developing clinical development for geographical atrophy, thyroid eye disease, type 1 diabetes, metabolic dysfunction-related phlebitis (MASH) and trigeminal neurotoxicity. MASH plans to come from the acquisition in 2023. Patient Square Capital and Premji Invest lead Kriya's D Series.
– Dyssey Therapeutics shut down a $213 million Series D round to support its pipeline of clinical and preclinical small molecules that accurately address drivers of complex autoimmune diseases. Boston-based biotechnology’s most advanced program is a mid-stage clinical development RIPK2 scaffolding inhibitor for ulcerative colitis and Crohn’s disease. The company submitted preliminary IPO paperwork in January but withdrew those plans in June. Odyssey was founded in 2021 by serial biotech entrepreneur Gary Glick.
– Gene Therapy developers have conducted $60 million in EPI-003 for chronic hepatitis B and hypercholesterolemia to support the ongoing clinical testing of EPI-003. Shanghai-based biotechnology aims to treat a variety of diseases with therapies that regulate epigenetic genome. The epigenetic B series is led by Lapham Capital.
– NRG Therapeutics closed £50 million (about $67 million) on financing to support the development of oral small molecules that penetrate the brain to suppress a target called mitochondrial permeability transition pore (MPTP). UK-based Stevenage, UK-based startup program NRG5051 was tested in Parkinson's disease as well as amyotrophic lateral sclerosis/motor neuron disease. SV Health Investors' Dementia Discovery Fund leads the NRG Series B financing, which is expected to begin clinical testing of its drugs in early 2026.
– Techbio startup Enveda has raised $150 million to support clinical development in multiple programs, including Lead Program Env-294, which has participated its first patient in a clinical trial of atopic dermatitis. The Boulder, Colorado-based company’s technology uses AI to analyze molecules found in nature to map their therapeutic properties. The company said the study has generated 16 preclinical programs, more than a dozen candidates, four auxiliary programs and ENV-294 in the Phase 1B test. Premji Invest leads Enveda's latest funding, the first round of the Series D, which ended the $150 million Series C last winter.
– Rapafusyn Pharmaceuticals raised $44 million for the development of non-degradable molecular glues. The startup said its lead program is a selective ENT1 inhibitor that is moving towards researching new drug applications after showing “convincing activity” in kidney disease models. Baltimore-based Rapafusyn said the series ended with the addition of investors Biotrack Capital and Yonjin Capital.
– Healthcare's Treeline Biosciences raised $200 million to support a pipeline that includes three cancer programs in early clinical development. Watertown, Massachusetts-based Biotech says the new capital is an extension of its Series A Series. Treeline said in total that it has raised more than $1.1 billion so far.
– Startup Corsera Health launches its launch, revealing $50 million raised to date from insiders and co-founders Clive Meanwell and John Maraganore. Both are former executives of the company that develops RNA interference drugs, Meanwell and Maganore of the Meatines Company of Alnylam Pharmaceuticals. Boston-based Corsera is developing an AI-enabled tool to predict the risk of cardiovascular disease and guide how to extend health. The startup has also developed a preventive RNAi drug for cardiovascular disease, aiming to target PCSK9 to lower cholesterol and angiotensin to lower blood pressure. Drug candidates taken each year can undergo human testing by the end of 2025.
– Charm Therapeutics invested $80 million to push its Menin inhibitor to the clinic to treat acute myeloid leukemia. The biotechnology says its Menin inhibitor overcomes the limitations of first-generation drugs in this class, including rapid resistant mutations in menin, which reduces efficacy, leading to recurrence and disease progression, and safety risks. Charm's Series B is led by New Enterprise Associates and SR One.
– Wugen raised $115 million to continue to conduct Phase 3 testing of its ready-made CAR-T cell therapy Wu-Cart-007. This pivotal study is testing CRISPR-edited therapies as a treatment for relapsed or refractory T-cell acute lymphocytic leukemia and T-cell lymphocytic lymphoma lymphoma lymphoma. Financing is led by Fidelity Management and Research.
– Leal Therapeutics earns $30 million in funding to continue clinical development of lead program LTX-001, a brain-penetrating oral small molecule inhibitor, mitochondrial enzyme glutaminease, Potential treatments for mental illness and amyotrophic lateral sclerosis (ALS). Another program, LTX-002, is an antisense oligonucleotide developed by ALS. Series A is led by the Dementia Discovery Fund of SV Health Investors.
– RNA Therapies developer Arnatar Therapeutics comes from Stealth, indicating it raised $52 million in Series A financing, led by Eight Roads and 3E Bioplant last year. The San Diego-based startup’s lead therapy candidate was founded in 2022 and is ART4, an antisense oligonucleotide that advances to the clinic as a potential treatment for Alagille syndrome, a rare genetic disease that affects the liver.
– Immunotherapy developer Anocca raises 440 million Swedish Krona to support the first phase of Vidar-1 testing, The company's gene-edited TCR T cell therapy for mutant KRAS treatment of pancreatic cancer. Mellby Gård led the financing.
Photo: Phive2015, Getty Images
