Cambridge, Mass.-based Garuda Therapeutics, which is developing stem cell therapies to treat a range of severe and life-threatening blood disorders, has closed a $50 million Series A-1 funding round with new strategic investment from Japan’s Kyowa Kirin Co. Other investors included New York-based OrbiMed, Bethesda, Md.-based Northpond Ventures and Boston’s Cormorant Asset Management.
the funding announcement, Garuda named a new CEO — Avanish Vellanki, an investment banker with significant experience in healthcare. He was most recently the co-founder, chairman and CEO of Rain Oncology. Vellanki succeeds interim CEO Dr. Adam Craig, who will remain in an independent capacity on the company’s board.
“Garuda’s first off-the-shelf hematopoietic stem cell transplantation candidate has the potential to HLA-match approximately 12% of the global population without the need for a donor,” Vellanki said, referring to human leukocyte antigen. Garuda’s first product candidate will be evaluated in HLA-matched patients with bone marrow failure syndrome and beta thalassemia, Vellanki said.
“Additional drug candidates, leveraging the same technology, are aimed to grow the HLA-matched eligible patient population to up to half of the global population for treatment of a range of diseases where a reset of bone marrow function is needed,” he added.
Garuda’s approach eliminates the need for donors for blood stem cell transplants. Instead, it relies on proprietary hematopoietic stem cell (HSC) therapies that effectively “reset bone marrow function.” Such therapies have the potential to treat a range of blood disorders across oncology, autoimmune indications, rare heme disorders and inborn errors of metabolism.
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“We are honored to be backing Garuda as they disrupt the market with their innovative readily available, off-the-shelf technology. The company’s vision for the future of hematopoietic stem cell transplantation without the need for stem cell donors make this a compelling investment opportunity,” said Carl Gordon, OrbiMed’s managing partner.
Vellanki, Garuda’s new chief executive, brings over 20 years of experience across healthcare and investment banking. He began his career on Wall Street at Bear, Stearns & Co. in 2004, starting with equity research. He later moved to Citibank’s Global Healthcare Investment Banking, where he focused on large-cap global biopharmaceutical strategic and financing transactions. Vellanki holds a BA from Carleton College, a MBS in biochemistry from the University of Minnesota, and an MBA from the Carlson School of Management at the University of Minnesota.
“The quality of the technology platform at Garuda is like nothing I have seen in my career, with the potential to eliminate the need for stem cell donors,” he said. “The opportunity for an off-the-shelf solution to reset bone marrow function is extraordinarily far-reaching.”
