Verdiva Bio, a newly established biotech firm, has secured $410 million in one of the largest Series A funding rounds in the biotechnology sector. The start-up, headquartered in London and San Francisco, aims to address challenges in the obesity treatment market by developing drugs sourced from China’s Sciwind Biosciences. The funding round was led by U.S.-based General Atlantic and European life sciences investor Forbion.
The company was co-founded by former executives of Aiolos Bio, a biotech company sold to GSK for $1.4 billion in 2023. Verdiva Bio’s chief executive, Khurem Farooq, emphasized the company’s focus on overcoming key issues in the obesity sector, including scaling up manufacturing and improving patient access to affordable treatments.
“Obesity treatments are increasingly expensive, limiting access for many patients. Our goal is to create viable solutions that balance efficacy and affordability, positioning us uniquely in the market,” Farooq said.
The global obesity drug market is projected to reach $105 billion by 2030, with sales of branded drugs reaching $6 billion in 2023, according to Morgan Stanley. High costs of treatments like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound—both priced over $1,000 per month in the U.S.—have led insurers and health systems to restrict access to the medications.
Verdiva Bio has acquired rights from Sciwind Biosciences to develop drugs outside China and South Korea, making it part of a growing trend of Western biotech firms sourcing innovative treatments from Chinese developers. Among its key assets is an obesity pill designed to be taken once weekly, leveraging a mechanism similar to Novo Nordisk’s Wegovy. The pill is currently in pre-phase 2 and 3 trials.
The company is also working on two other drugs that target amylin, a hormone believed to effectively suppress appetite. Verdiva Bio aims to provide follow-up treatments to help patients maintain weight loss after using existing injectable drugs.
Mark Pruzanski, chair of Verdiva Bio, highlighted the potential of these treatments: “There is an enormous opportunity to address the needs of patients who discontinue injectables, offering them a convenient pill option for sustained weight management.”
While Novo Nordisk and Eli Lilly have been acquiring smaller firms to strengthen their obesity treatment pipelines, Verdiva Bio’s leadership has a different vision. The company intends to use part of its raised capital to acquire additional assets and grow independently.
“Our aim is not to be acquired but to establish a long-term cardiometabolic company,” said Farooq.
The funding will also support further clinical trials and commercialization efforts, positioning Verdiva Bio to be a significant competitor in the rapidly expanding obesity treatment market.
As the global demand for effective obesity solutions grows, Verdiva Bio’s innovative approach and substantial funding provide it with a strong foundation to challenge established players and drive advancements in this critical healthcare segment.
