News Summary
Volastra Therapeutics, a drug-discovery company in Harlem, successfully raised over $30 million in a new venture capital round. The funding, backed by 11 undisclosed investors, underscores strong interest in Volastra’s innovative cancer treatment strategies, particularly focusing on the KIF18A protein. Positive trial results and FDA fast-tracking are propelling the company forward, further supported by partnerships with tech giants like Microsoft. Since 2019, Volastra has expanded significantly, now advancing two drug candidates to Phase 1 trials to combat chromosomal instability in various cancers.
Harlem – Volastra Therapeutics, a drug-discovery company based in Harlem, has successfully raised over $30 million in a later-stage venture capital round, as confirmed by a filing with the Securities and Exchange Commission. This funding round closed this week and saw participation from eleven undisclosed investors, each purchasing equity in the company. The funding round opened earlier in the month, indicating a robust interest in Volastra’s innovative approach to cancer treatments.
Volastra Therapeutics primarily focuses on developing therapies that target a protein known as KIF18A, which plays a critical role in cell division, particularly in cancer cells. The recent influx of capital follows positive clinical trial data released in May, which demonstrated that Volastra’s oral protein inhibitor was effective in reducing tumor sizes in specific ovarian cancer patients. Supporting this progress, the Food and Drug Administration (FDA) granted the drug a “fast track” designation in October, aimed at fast-tracking its development and review process.
The $30 million funding is part of a broader trend of financial momentum for Volastra, which has secured partnerships with prominent tech and health care companies since its establishment in 2019. Notably, Volastra has expanded its collaboration with Microsoft to utilize artificial intelligence in quantifying chromosomal instability, a significant factor in cancer growth. The company has also partnered with other cancer drug-discovery startups, including Function Oncology and Tailor Bio.
This recent round of funding is not the first significant financial gain for Volastra; the company raised $60 million in a Series A round in 2023, which was led by Polaris Partners, ARCH Venture Partners, and Eli Lilly. That funding was achieved shortly after entering into an agreement with Bristol Myers Squibb to develop therapeutic targets valued at up to $1.1 billion.
Volastra operates out of a 15,000-square-foot facility at the Mink Building in West Harlem. The company recently renewed its lease for three years, paying an asking rent of $105 per square foot. Since relocating to the Mink Building in 2020, Volastra has expanded its space after obtaining an additional $12 million in seed funding. The Mink Building is also home to other life sciences firms, many of which have seen recent growth or new financial arrangements.
As part of its drug development efforts, Volastra is advancing two drug candidates to Phase 1 clinical trials, both aimed at inhibiting KIF18A. These treatments are focused on various cancer types, including certain ovarian cancers, triple-negative breast cancer, and squamous non-small cell lung cancer. The targeted inhibition of KIF18A is crucial because this protein helps stabilize chromosomes before cell division, and its blockade could prevent cancer cell proliferation while allowing normal cells to function appropriately.
Up to 80% of all cancers exhibit some level of chromosomal instability, with certain cancer types displaying nearly complete prevalence. Volastra’s development strategy seeks to utilize this understanding of chromosomal instability to pinpoint potential patient populations that may greatly benefit from KIF18A inhibitors.
Over the past four years since its founding, Volastra has evolved significantly, growing from a small team to 35 employees and making notable advancements in the field of cancer treatment. The company’s location in New York City is viewed as advantageous, providing access to abundant talent, capital resources, and innovative opportunities.
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Additional Resources
- Crain’s New York: Volastra Therapeutics Raises Capital for Oncology Drugs
- Wikipedia: Cancer
- Commercial Observer: Volastra Therapeutics’ Mink Building Lab Space
- Google Search: Oncology Drug Development
- Life Science Leader: Companies to Watch – Volastra Therapeutics
- Google Scholar: KIF18A Inhibition in Cancer
- Business Wire: Volastra Therapeutics Appoints CEO
- Encyclopedia Britannica: Cell Division
- Columbia Spectator: Harlem Biospace Expansion
- Google News: Cancer Treatment Advancements
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