Biotech startup VerImmune just raised $3.1M for its cancer therapy tech

In a follow-on round, a local biotech company raised millions to help with the development of its cancer prevention tech.

VerImmune, a startup based out of Johnson & Johnson’s JLabs space in northwest DC, raised $3.1 million in a round led by Proxima Ventures. Existing investors Gaingels and Mana Ventures also took part in the raise, which follows the $2.5 million, Seedfolio-led seed round that the company raised last year.

The six-person startup was founded in December 2019 and originally was based in Baltimore, Maryland, before moving to JLabs. Founder Joshua Wang told Technical.ly that the company is developing a delivery technology platform called virus-inspired particles (VIPs). It works like this: VerImmune wants to use these VIPs to trick the body into seeing cancer cells as a past viral infection or childhood vaccine target that the body is already familiar with — and knows how to fight.

“It’s basically tricking the body to see cancer like chickenpox or measles or your cytomegalovirus response,” Wang said. “It’s basically a bait-and-switch.”

Wang said that many In the immunotherapy field right now are trying to create a cancer vaccine to give the body an anti-cancer response. But the issue is that many people don’t have any sort of cancer response to begin with, which makes it very difficult to create one through a vaccine. What most people do have, though, is a response to diseases that require a vaccine.

VerImmune initially applied for and received Small Business Innovation Research program grants to work on a proof of concept. Eventually, the company was able to schedule a pre-investigational new drug (IND) meeting with the FDA to help develop trial strategies. Wang said that the company wants to use the funds to accelerate its work and get to an IND process. A peer-reviewed study by the National Cancer Institute researchers also validated the company’s approach.

So far, the company is focused on developing its vaccine research and FDA approvals, but Wang said he’s always looking for ways that VerImmune could eventually add AI or machine learning technology into its processes.

“Right now, working on the platform is more important because of oncology, but we’re looking to mass use it for other kinds of diseases,” Wang said. “Based on that, the company will grow organically in the DMV area.”

Before starting VerImmune, Wang was one of the founders of PathoVax, which looked to develop a universal HPV vaccine.

With this round, Wang said the company will have runway to prepare for a Series A round, which he hopes will close in the next several months. That, he wishes, will help the company become a clinical-stage company; with this latest infusion, he said, VerImmune reached the pre-clinical stage. The team also has some collaborations overseas, and he’d like to see how those can grow.

But for now, he’s looking to keep working to show how this technique can help treat and prevent cancer.

“[This round] puts the company in a stronger position to move forward and create value in terms of demonstrating some of these advanced development deliverables, showing that you can make your product clinically, showing that your product is safe,” Wang said.