With lead gene therapy nearing the clinic, SwanBio leans heavily on Syncona to close $56M series B

Syncona is continuing to bet big on gene therapy. While setbacks at other biotechs have taken the sheen off the modality, the investor is keeping the faith in SwanBio Therapeutics, stepping up to provide the lion’s share of a $56 million series B round that will support an early-phase clinical trial. 

Philadelphia-based SwanBio is advancing a pipeline of gene therapies for spinal-cord-related disorders led by SBT101, a treatment for the genetic disorder adrenomyeloneuropathy (AMN) that is set to enter the clinic in the back half of the year. With the phase 1/2 study on the horizon, the biotech has returned to investors to top up its bank balance.

Founding investors Syncona and Mass General Brigham Ventures led SwanBio’s funding round. While SwanBio gave the two organizations equal billing as lead investors, Syncona did the heavy lifting, committing $54 million to secure itself an 80% stake in the biotech. The commitment reflects satisfaction with how SwanBio has progressed since Syncona supported an expanded $77 million series A in 2020.

“Since our initial investment, SwanBio has made excellent progress, with the company rapidly advancing its lead program for AMN towards the clinic. In parallel, the company has built the platform capabilities that will allow it to advance its broader pipeline of AAV gene therapies for spinal cord-related disorders towards clinical development,” Chris Hollowood, chief investment officer of Syncona, said in a statement. 

SwanBio will use the money to push SBT101 into the clinic while advancing earlier-stage candidates. The lead candidate uses AAV9, the blood-brain barrier crossing viral vector found in Novartis’ Zolgensma, to try to compensate for the ABCD1 mutation that drives the loss of mobility, incontinence, pain and sexual dysfunction experienced by people with AMN.

The prospect is the first of a clutch of gene therapies for disorders related to the spinal cord that are coming down the pipeline. SwanBio is yet to disclose the targets of its other gene therapies but has said it is working on spastic paraplegias and monogenic and polygenic neuropathies.