Arix Bioscience PLC (LON:ARIX) has invested US$11mln (£8.4mln) to take an 11.2% stake in next-generation cancer drug developer VelosBio.
Other backers in the Series A funding round included Sofinnova Ventures, Decheng Capital and the investment arm of Japanese drugs giant Takeda.
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VelosBio is led by chief executive Dave Johnson, the former boss of Acerta Pharma, which developed blood cancer treatment CALQUENCE, acquired by AstraZeneca PLC (LON:AZN) back in 2015 for up to US$7bn.
The company specialises in antibody drug conjugates – a new class of highly potent drugs which only target cancer cells so that the healthy cells are less affected.
“Our strategy in oncology is to support a diverse portfolio of companies using novel and differentiated approaches to treat cancer and improve patient outcomes,” said Arix chief investment officer Joe Anderson.
“VelosBio is led by an exceptional team developing a novel, high potential approach to the targeted killing of cancer cells.
“It is great to see such a strong syndicate come together to support the Series A, including leading venture capital groups and our strategic partner Takeda.”
As part of the funding, Arix investment director Mark Chinwill take a seat on the VelosBio board of directors.