On September 9, 2021, Lycia Therapeutics, Inc., a leader in extracellular protein degradation, announced the completion of an oversubscribed $70 million Series B financing. Redmile Group led the round, with participation from founding investor Versant Ventures and new investors Cowen Healthcare Investments, Invus, RTW Investments, LP, Eli Lilly and Company, and Alexandria Venture Investments. Wilson Sonsini represented RTW Investments in the financing.

Lycia is using its next-generation degradation approach to target the untapped extracellular proteome, including cell surface receptors and secreted proteins. The company’s lysosomal targeting chimeras, or LYTAC, platform can be extended to several therapeutic modalities, including antibodies and small molecules, with the potential to inhibit many targets previously considered intractable across a spectrum of therapeutic areas and diseases.

The Series B financing follows Lycia’s announcement in August 2021 with Lilly that the companies have entered into a strategic collaboration to discover, develop, and commercialize novel targeted therapeutics using the LYTAC platform to address key unmet medical needs in Lilly’s therapeutic areas of focus, including immunology and pain. Lycia plans to use its $105 million in recent funding, including its Series B raise and a $35 million upfront payment from Lilly associated with the collaboration, to continue to progress its internal undisclosed discovery pipeline of LYTAC degraders.

The Wilson Sonsini team that represented RTW Investments in the financing was led by partner Jennifer Fang and associate Priyanka Nawathe.

For more information, please see the press release.