US biotech Merida Biosciences has emerged from stealth mode with a substantial $121 million Series A financing round to develop novel therapeutics targeting disease-causing antibodies in autoimmune diseases and allergies. The funding was co-led by Bain Capital Life Sciences, BVF Partners, and Third Rock Ventures, with additional participation from GV and Perceptive Xontogeny Venture (PXV) Funds.
The company is advancing a proprietary protein engineering platform designed to develop fragment crystallisable (Fc)-based biologics with a unique mechanism of action. These therapeutics selectively bind and eliminate pathogenic antibodies while preserving healthy components of the immune system. Additionally, Merida's approach aims to deplete the B cells responsible for producing these harmful antibodies.
Novel Approach to Autoimmune Disease Treatment
Merida's technology represents a potential paradigm shift in treating autoimmune conditions by directly targeting the root cause of these diseases rather than broadly suppressing immune function. This approach could potentially avoid the significant side effects associated with current immunosuppressive therapies.
"For the first time, we have the potential to precisely target the clear pathogenic drivers of an intractable set of diseases with absolute selectivity and a degree of completeness and durability that has not been achievable through any approach to date," said Adam Townsend, Chief Executive Officer of Merida, in the company's launch announcement.
Townsend, who previously served as COO of Apellis Pharmaceuticals and held executive positions at Biogen, brings over 20 years of global biopharmaceutical experience to lead the company. He is joined by Chief Scientific Officer Dario Gutierrez, a former executive director at MSD and consultant at Third Rock Ventures.
Graves' Disease: Lead Program with Significant Market Potential
Merida's lead program will focus on Graves' disease, an autoimmune condition that causes the thyroid to overproduce hormones, resulting in hyperthyroidism. The condition affects approximately 1 in 200 people, with women being five to ten times more likely to develop the disease than men.
Current standard of care treatments for Graves' disease include antithyroid drugs (ATDs), which often fail to provide adequate disease control. Merida is positioning its candidate as a more targeted alternative that could offer a more convenient dosing schedule and an easier route of administration compared to existing and emerging treatments.
The Graves' disease treatment landscape is becoming increasingly competitive. Immunovant is developing batoclimab, a monoclonal antibody currently in Phase IIa trials for Graves' disease patients who remain uncontrolled on ATDs. Interim data released in September 2024 showed a promising 76% response rate at 12 weeks. If approved, industry analysts project batoclimab could generate $872 million in global sales by 2030.
Biohaven is also entering the space with BHV-1300, a small molecule therapy targeting and degrading immunoglobulin G1 (IgG1) autoantibodies that cause Graves' disease. The company has announced plans to launch a Phase II study of the drug in mid-2025.
Expanding Pipeline Beyond Graves' Disease
Following its lead Graves' disease program, Merida plans to pursue candidates for food allergies and primary membranous nephropathy, a rare autoimmune kidney disorder that affects approximately 10 people per million annually.
Primary membranous nephropathy represents a significant unmet medical need, as current treatments often involve non-specific immunosuppressants with substantial side effects. By targeting the specific antibodies involved in this condition, Merida's approach could potentially offer a more effective and safer treatment option.
Leadership and Operational Structure
In addition to CEO Adam Townsend and CSO Dario Gutierrez, Merida has assembled an experienced leadership team including Chief Operating Officer Dodzie Sogah, Ph.D., Chief Medical Officer Matthew Leoni, M.D., MBA, Interim Chief People Officer Tara Reagan, MBA, and Senior Vice President of Process and Product Development Michael Naill, Ph.D.
The substantial Series A funding provides Merida with the financial runway to advance its lead programs through early clinical development while continuing to expand its proprietary platform technology. The company has not yet disclosed timelines for initiating clinical trials of its lead candidates.
Market Impact and Future Prospects
Merida's entry into the autoimmune disease space comes at a time of significant innovation in the field. The global autoimmune disease therapeutics market was valued at approximately $110 billion in 2023 and is projected to grow at a CAGR of 8.5% through 2030.
With its novel approach to targeting pathogenic antibodies with high selectivity, Merida has the potential to address significant unmet needs across multiple autoimmune conditions. The company's technology could represent a major advance in the treatment paradigm if it successfully demonstrates the ability to eliminate disease-causing antibodies without broadly suppressing immune function.
As Merida advances its programs toward the clinic, the company will need to demonstrate that its Fc-based biologics can achieve the selective targeting and durable responses promised by its platform technology. If successful, this approach could position Merida as a significant player in the evolving landscape of autoimmune disease treatment.
