Biotech Scipher Medicine Raises $110 Million Series D

By FYH News Team

Published on March 2, 2022

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Scipher Medicine uses blood testing and AI to determine if autoimmune drugs will work on a person.
The biotech just raised $110 million from crossover investors like Cowen and Neuberger Berman.
“Not a lot of companies are doing this sort of raise in the current environment,” the CEO said.

Rheumatoid arthritis treatments like AbbVie’s Humira are some of the biggest moneymakers in the drug industry.

But they only work on about 35% of patients who try them, according to the blood-testing company Scipher Medicine. In the US, that can lead to billions of dollars of wasted spending each year.

Scipher Medicine, which is based in Waltham, Massachusetts, wants to help physicians determine whether a person will benefit from drugs like Humira before they go through weeks or months of trial and error. The company sells one blood test to predict whether rheumatoid-arthritis treatments will work for specific patients, and it plans to launch another five tests over the next five years for conditions like inflammatory bowel disease.

Last week, the company announced it had raised $110 million to help develop those tests and expand Scipher’s business by partnering with drug companies to develop new medications.

The Series D round included several crossover investors like Cowen Healthcare Investments and Neuberger Berman. Those investors usually put their money into a company right before it goes public, giving them a clear idea of when they’ll recoup their money and some profit.

But successful biotech IPOs are far from certain right now. Valuations that ballooned due to the pandemic are coming back to earth, and regulatory setbacks are also contributing to a biotech stock slump. A leading index fund tracking biotechs is down 46% from its peak last month.

“Not a lot of companies are doing this sort of raise in the current environment, so I think that speaks to the strength of our technology and momentum,” said CEO Alif Saleh. The company is planning on filing for an IPO in the future, he said.

Here’s how Scipher pitched its plans to investors:

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