Evommune, Inc., a clinical-stage biotech and Cure Collaboration Residency company, secured a substantial $115 million in Series C financing, announced Oct. 31, 2024. This financing underscores investor confidence in the company’s pioneering approach to developing novel therapies for chronic inflammatory diseases, which are linked to more than 100 autoimmune diseases and three in five deaths worldwide.
RA Capital Management and Sectoral Asset Management co-led the financing, which also received supported from a variety of healthcare specialist investors. The funds will support the continued advancement of the company’s lead clinical programs, including multiple Phase 2 studies of EVO756, a potent, highly selective small molecule designed as a very targeted oral therapeutic option for multiple mast cell-mediated diseases.
The proceeds will also support a Phase 2 proof of concept study of EVO301, an injectable therapeutic fusion-protein that is designed to neutralize the signaling pathway of IL-18 for the regulation of inflammation in multiple chronic inflammatory diseases.
Evommune Manages Growth for Biotech Innovation
As Luis Peña, President and CEO of Evommune, points out, the biotech industry requires substantial capital due to the high risk and prolonged timelines associated with research and development.
Unlike tech companies that may secure early revenue and face limited dilution, biotech firms rely heavily on investor confidence in their R&D pipelines long before any product reaches the market.
Peña noted, “The hope is that you have such a great discovery that it is going to pay off for the investor. To do so, you need to run multiple programs.”
Under Peña’s leadership, Palo Alto-based Evommune has pursued a strategic approach to growth by assembling a robust leadership team. Drawing on his extensive experience in successful drug development and regulatory approvals, Peña highlighted the value of cultivating a seasoned, responsive and cohesive management team.
“We have a super experienced management team,” Peña stated. “With nearly 30 NDAs or BLAs being led by our team collectively, it’s pretty rare to find that kind of talent.” Their knowledge and talents have been instrumental in navigating the complex biotech landscape and positioning Evommune to stand out to investors.
Evommune’s portfolio strategy is also a deliberate choice to mitigate the inherent risks of biotech development. Rather than focusing on a single asset, the company diversified its pipeline to include multiple programs to address different pathways involved in immune-mediated chronic inflammatory diseases. This strategic choice increases the probability of success and appeals to investors seeking resilience and long-term value.
“We’re running a portfolio to leverage our experience and manage risk,” Peña explained. “We’re not going to be a one-trick pony.”
Evommune Leadership and Culture of Collaboration Drive Value
Evommune’s corporate culture, marked by transparency, collaboration and strategic thinking, has proven to be a key asset in attracting the right investors.
“We’re very culture-driven,” Peña said. “There’s a set of principles we guide ourselves by, and we’re always transparent about them. Having an experienced, easy-to-work-with management team is a big deal, and we’ve heard from some of our big investors that this made a difference.”
Peña noted that Cure also plays an important role in supporting Evommune’s development by fostering collaboration among biotech companies, investors and financial experts.
“We are in the Cure ecosystem, a hub of other companies and investors, right in the thick of things,” he said. “It keeps us close to everyone we need to be with, and it makes it great for us.”
For example, Cure’s ecosystem facilitated networking opportunities for Evommune such as a recent Life Sciences Sherpas event, which Peña described as invaluable for building personal connections with investors.
Evommune’s leadership has also prioritized building a solid board of directors that aligns with the company’s culture and strategic vision. The recent additions of Derek DiRocco, PhD, from RA Capital Management, and François Beaubien, PhD, CFA, from Sectoral Asset Management, further strengthens the board.
Peña underscored the importance of board dynamics: “Boards are so critical to a company. It’s about your culture and your ability to work together well. We’re excited about Derek and François joining; they fit perfectly into our culture and make our board even stronger.”
Evommune’s latest financing round and strategic alignment with experienced investors, supported by a solid R&D pipeline and strong leadership, positions the company to continue delivering on its promise of innovation.
As Peña noted, “This round is a vote of confidence from our investors that we’re on the right path.” With its comprehensive approach to risk management, corporate culture and investor relationships, Evommune is set to advance the standard of care for patients with chronic inflammatory diseases.