Earendil Labs Raises $787M, Immunic Secures $400M in Biotech Funding Surge

Earendil Labs, a high-powered startup with a presence in China and the U.S., has secured $787 million to advance a sprawling pipeline of biologic medicines for autoimmune conditions and cancer. The hefty funding announced by the biotechnology company on Friday included more than half a dozen investors, among them venture firms Dimension and Luminous Ventures and the French pharmaceutical giant Sanofi.

That bankroll "allows us to operate at a fundamentally different scale," enabling the company to advance several programs towards clinical testing while building an "R&D organization designed for long-term impact," the founder and CEO said in a statement.

Earendil is incorporated in Delaware but has offices in Beijing and is affiliated with Helixon Therapeutics, which is backed by a number of Chinese venture capital firms. The company is using artificial intelligence to develop next-generation biologics for several different diseases, from asthma and eczema to colorectal cancer. Earendil claims its technology has produced more than 40 programs overall, and on its website lists 19 in its pipeline. One, for inflammatory bowel disease, is ready for Phase 2 development, the company said Friday.

Several of these medicines are aimed at popular drug targets, like the protein DLL3 in lung cancer and TL1A in IBD. Many are bispecific antibodies, T cell engagers or dual-targeting antibody-drug conjugates, drug types that have been attracting interest from startups, venture investors and large pharmaceutical firms alike. The company is reportedly considering an initial public offering in Hong Kong.

Sanofi has already allied with the firm twice, first last April and then again in January. The original deal involved two drugs for IBD and other autoimmune conditions, while the second pact was broader in scope and included plans to discover new therapies for multiple immune diseases. Both deals included payouts that could reach close to $2 billion or more.

"Earendil Labs stands out for its ability to translate AI innovation into real, scalable R&D execution," said a founding managing partner at Dimension, in a statement. "The team has shown that AI can consistently generate high-quality biologics programs and advance them toward the clinic."

In a separate financing, shares of Immunic, Inc. (Nasdaq: IMUX) climbed Friday morning after the late-stage biotechnology company announced an oversubscribed private placement of up to $400 million, priced at the market under Nasdaq rules. The financing includes $200 million in upfront gross proceeds, with the potential for an additional $200 million upon exercise of accompanying warrants.

The company stated that the proceeds are expected to accelerate its transition from a research-driven organization into a fully integrated commercial-stage company. Immunic plans to use the capital to complete its ongoing Phase 3 ENSURE clinical trials of vidofludimus calcium in relapsing multiple sclerosis, with top-line data anticipated by the end of 2026. Management indicated that, pending positive results, a New Drug Application submission in the United States is targeted for mid-2027, with potential regulatory approval in 2028.

In parallel, Immunic is preparing to initiate a Phase 3 clinical program in primary progressive multiple sclerosis later this year, a study expected to run approximately three and a half to four years. With both pivotal programs advancing, the company is positioning vidofludimus calcium as a next-generation oral therapy designed to address both inflammatory relapses and neurodegenerative progression in multiple sclerosis.

Vidofludimus calcium is described as a first-in-class therapy combining activation of the nuclear receptor-related 1 pathway, aimed at promoting neuroprotection, with selective inhibition of dihydroorotate dehydrogenase to reduce inflammatory damage. Management believes this dual mechanism could address both relapse-associated worsening and progression independent of relapse activity, two central drivers of disability in MS.

The financing was led by existing investor BVF Partners L.P., with participation from several institutional investors including Aberdeen Investments, OrbiMed, RA Capital Management, Janus Henderson Investors, and Vivo Capital, among others. The company also entered into a separate agreement to cancel certain previously issued warrants in exchange for a future royalty interest tied to net sales of vidofludimus calcium, further streamlining its capital structure.

Alongside the financing, Immunic announced leadership changes as it prepares for commercialization. The co-founder and CEO will begin a search for a new chief executive with commercial expertise in the MS space, while transitioning to a senior role focused on scientific strategy. A former Global Head of Neuroscience and Rare Diseases at Roche has been elevated to interim Chairperson of the Board, and a representative of BVF Partners has joined the board as well.

The company expects that, combined with existing cash and marketable securities, the proceeds will fund operations into late 2027. Shares of IMUX were up 26.4% to $1.10 in early Friday morning trading.