A Kirkland-based biotech firm, led by former Athira Pharma CEO Leen Kawas, has successfully raised $35 million in a Series A funding round. Propel Bio Partners, the Los Angeles-based investment firm co-founded by Kawas, spearheaded the oversubscribed round, with contributions from Good Ventures, Arrowtown, and others.
Funding Purpose
EIT Pharma, the company behind this initiative, announced that the newly acquired funds will be allocated towards supporting the FDA review process for lonafarnib, an oral treatment candidate for chronic hepatitis D. The financing will also facilitate manufacturing and commercial preparations, contingent on receiving regulatory approval.
On August 11, the FDA accepted EIT Pharma’s New Drug Application for review, marking a significant milestone for the company.
Acquisition of Lonafarnib
The journey of lonafarnib to EIT Pharma began with the bankruptcy of Eiger BioPharmaceuticals in 2024. The court-managed sale, finalized in September of that year, not only included lonafarnib but also peginterferon lambda, which EIT Pharma is developing to address severe respiratory infections.
Kawas expressed her enthusiasm regarding the funding round in a recent news release, emphasizing that this achievement validates the company’s core belief in recognizing and advancing unrealized potential in the realm of important medicines.
The Challenge of Chronic Hepatitis D
Chronic hepatitis D represents a severe liver condition that predominantly affects individuals already infected with hepatitis B. In May, the FDA granted approval for the first U.S. treatment for chronic hepatitis D: Gilead’s injectable Hepcludex (bulevirtide-gmod). EIT Pharma aims to position lonafarnib as a potential oral alternative, pending regulatory approval.
Leen Kawas’s Leadership Journey
Kawas’s tenure at Athira Pharma ended in 2021 after an internal investigation revealed that she had altered images in research she co-authored during her graduate studies. She maintained at the time that these modifications were enhancements that did not impact the underlying data.
Since then, Athira Pharma has rebranded itself as LeonaBio and shifted its focus from Alzheimer’s disease to breast cancer, illustrating the dynamic nature of the biotech landscape.
Looking Ahead
The funding received by EIT Pharma not only reflects investor confidence in the company’s mission but also underscores the growing emphasis on innovative solutions for chronic diseases like hepatitis D. As the company prepares for the next phases of development, including potential commercialization, the biotech community will be keenly watching its progress.
Key Takeaways
- EIT Pharma, led by Leen Kawas, raised $35 million in a Series A funding round.
- The funds will support the FDA review of lonafarnib for chronic hepatitis D.
- The acquisition of lonafarnib occurred through Eiger BioPharmaceuticals’ bankruptcy.
- Chronic hepatitis D affects individuals with hepatitis B, and EIT Pharma aims to provide an oral treatment option.
- Leen Kawas previously led Athira Pharma, which has since shifted its focus to breast cancer under a new name.
The biotech sector continues to evolve, driven by innovative leaders like Kawas and the relentless pursuit of addressing unmet medical needs. As EIT Pharma moves forward, its efforts could pave the way for significant advancements in the treatment of chronic hepatitis D.
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