eTheRNA, a Belgian biotech, raised $38 million in a Series B round to fund its immuno-oncology pipeline with two new China investors participating. Grand Decade, a subsidiary of China Grand Pharmaceutical (HK:512) and Yijing Capital both contributed. China Grand Pharma will have China commercialization and manufacturing rights to certain eTheRNA programs, though details of the agreement have not been finalized.

eTheRNA is also working on a pan-coronavirus mRNA-based vaccine that is expected to begin clinical trials next year. The funding will support clinical trials of three eTheRNA immuno-oncology programs.

To develop new cancer drugs, eTheRNA uses its TriMix technology, which combines therapeutic mRNA molecules that encode CD70, CD40L and TLR4 to stimulate antigen-specific T cell infiltration into tumors.

The company's lead program, A001, is in Phase I/II tests to treat metastatic melanoma with data expected next year. A second program in breast cancer has started a clinical trial under the direction of the Free University of Brussels, with data also due in 2021,

Other participants in the B round were two additional new investors, BNP Paribas Fortis Private Equity, and Novalis LifeSciences, plus existing investors Boehringer Ingelheim Venture Fund, Fund+, LSP, PMV and Omega Funds.

There are two mRNA vaccines that are already being tested in clinical trials. One was developed by Moderna (NSDQ: MRNA) and the other by BioNTech SE (NSDQ: BNTX). Both target the SARS-CoV-2 spike protein, which has regions that differ from other coronavirus spikes and, if they prove to be effective, will work only for SARS-CoV-19. eTheRNA's candidate aims to stimulate T cell responses against epitopes conserved across the coronavirus family.

According to Steven Powell, CEO of eTheRNA, “One of the potential advantages of T cells is that you invoke a longer-lived response than is often seen with antibody-mediated neutralization. We’re constructing antigen designs using a variety of different regions of the virus and then looking to put that together as a conserved sequence-based antigen.”

Powell added that the B round will also fund another internal program, A002, that targets HPV-positive cancers, through to first-in-human data.

In parallel with the financing, eTheRNA agreed to initial terms on a deal with China Grand Pharma that would include manufacturing of mRNA drugs in China and grant Grand Pharma rights to certain as yet undisclosed eTheRNA programs in Greater China. Details of the deal and financial terms are still being finalized.

Disclosure: none.