VCs investing in cell engineering for drug discovery

Cell engineering is the process of adding, deleting, or modifying genetic sequences in living cells, including altering cell production, changing cell growth and proliferation requirements, or adding or removing cell functions.

These processes can also be used in drug discovery to modify and control cells in order to identify and develop new drugs; that can involve genetic modification, in which scientists alter the genetic makeup of cells to express specific genes, as well as synthetic biology, which involves designing and constructing new biological parts, devices, and systems, or cell-based assays, or engineered cells used in screening assays to test thousands of potential drug compounds rapidly.

While cell engineering for drug discovery has been around for decades, there recent advances that have opened up new possibilities, including 2D cell models and stem cells, which are increasingly being used to improve the drug discovery process; for example, they can be used to create organoids, which are miniature 3D organs that can help researchers understand how tissues and organs work, how disease develops, and how to test potential medicines.

As such, venture capitalists are also increasingly taking notice and putting money into companies using cell engineering for drug discovery. That includes ARCH Venture Partners, a firm that mainly invests in companies from the biotech industry, but which has also invested other industries, including semiconductors.

ARCH has backed companies like Juno Therapeutics, a company that was using cell engineering to develop cancer immunotherapies before being acquired by Celgene for $9 billion in 2018, as well a Alnylam Pharmaceuticals, a company developing RNA interference (RNAi) therapeutics. RNAi is a process that uses small pieces of RNA to silence genes and regulate protein expression; Alnylam is using it develop therapies for difficult-to-treat diseases. 

Another firm active in this space is Third Rock Ventures, a life science investment firm that supports biotech, pharma, and medical startups. It has invested in companies such as Editas Medicine, a company that uses CRISPR gene editing technology to develop cell medicines for rare diseases, researching and developing both in vivo and ex vivo gene editing medicines. Third Rock has also invested in Bluebird Bio, a company developing gene therapies for severe genetic diseases and cancer. 

Other firms that focus on life sciences that have invested in cell engineering companies include Sofinnova Partners, which has invested in Catamaran Bio, which is engineering NK cell therapies to provide transformative off-the-shelf treatments for solid tumors and other cancers, and 5AM Ventures, which focuses on early-stage life sciences companies, and whose  portfolio includes companies like Nvelop, a company engineering programmable, non-viral vehicles for targeted in vivo delivery of therapeutic and editing cargoes, and Rallybio, a company focused on identifying and accelerating the development of transformative breakthrough therapies for patients with severe and rare disorders.

There's also RA Capital Management, a firm that invests in companies developing novel therapies and technologies, which has investments in companies that includes Capstan Therapeutics, a company dedicated to advancing in vivo reprogramming of cells through RNA delivery.

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