The Needle Issue #8


Welcome to the latest issue of the Needle, a newsletter from Haystack Science helping you understand the latest translational research and goings on in the biotech startup world.

This week, we talk about mitochondrial disease, a corner of the gene and base-editing universe that, until recently, had been somewhat neglected, at least in terms of biotech startups. Also, there was the usual harvest of papers describing drug targets and a couple of intriguing drug delivery papers. We provide a selection of therapeutics startups who presented data at the Yale Innovation Summit and roundup the rest of the week’s news, including the launch of several new venture funds focused on early-stage builds. Three megadeals from Sanofi, Bristol Myers Squibb and Regeneron dominated business news last week, but we did find a few notable announcements of partnerships or deals involving preclinical biotechs. If you know of any additional deals, let us know (info@haystacksci.com).

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Around 1 in 5000 people live with a maternally inherited mitochondrial disease like MELAS, Leber’s Hereditary Optical Neuropathy (LHON) or MIDD, for which there are limited or no treatment options. Gene- and base-editing therapies for mitochondrial DNA (mtDNA) have lagged behind CRISPR–Cas9-based approaches targeting nuclear genes. Whereas there is already a CRISPR–Cas9-based product on the market and >150 different active trials of investigational therapies, the company closest to the clinic with an I-CreI (mitoARCUS) meganuclease targeting a mtDNA point mutation in MELAS/mitochondrial myopathy (Precision Biosciences) announced last month that it was pausing development for commercial reasons.

Despite this disparity, there is reason for optimism as a flurry of different types of optimized cytidine and adenine base editors for mtDNA are now available, with base conversion efficiencies of 50% now achievable, and some newer formats reaching efficiencies as high as 82%.

The development of mtDNA editors is not without challenges. First, editors must dispense with the targeting guide RNA, as mitochondria possess a double membrane that lacks any RNA transport system, effectively thwarting CRISPR-based gene or base editors (instead, a mitochondrial targeting sequence is used to ferry-in editor proteins). Second, unlike nuclear DNA with two copies of a gene, every human cell contains thousands of mitochondria — oocytes contain a whopping 193,000 mitochondria on average — and each organelle contains an average 10 mitochondrial genomes. Those ~10,000 genomes per cell may not all have the same sequence, with mutations existing in a state known as heteroplasmy, in which both mutant and wild-type genomes co-exist in the same organelle. Disease only occurs when the percentage of mutant mtDNA exceeds a particular threshold, typically between 70% and 95%.

Heteroplasmic mitochondrial diseases, like MELAS and MIDD, could be treated using I-Crel/FokI meganucleases or restriction enzymes linked to either transcription activator-like effector (TALE) domains or zinc fingers (which introduce double-strand DNA breaks into target sequences, leading to elimination of mutant mtDNA and repopulation of wild-type mtDNA); other conditions like LHON are predominantly mutant homoplasmic, which means they can only be treated using base editors or supplemental gene therapy.

One key concern with base-editing technology has been its propensity for off-target and bystander changes. This has led to various strategies to increase specificity, such as engineering the deaminases to narrow the editing window or use of nuclear exclusion sequences to stop nuclear sequence editing. Now, two papers in Nature Biotechnology represent important advances that could speed up translational studies of mitochondrial diseases.

Liang Chen, Dali Li and their colleagues of ShanghaiTech University, China report the engineering of highly efficient mitochondrial adenine base editors (eTd-mtABEs) by introducing mutations into the TALE TadA-8e deaminase for greater activity and specificity. These editors achieved up to 87% editing efficiency in human cells and over 50% in vivo, with reduced off-target effects compared to earlier tools.

In the first study, the researchers used eTd-mtABEs to introduce mutations in the human ND6 gene, encoding a subunit of the oxidative phosphorylation (OXPHOS) system linked to LHON and Leigh syndrome. They found reduced levels of ATP and more reactive oxygen species in the edited cells compared with controls, consistent with disease phenotypes. Next, the team used this adenine TALE base editor to introduce two pathogenic T-to-C mutations in the mitochondrial TRNS1 gene of rat zygotes, a gene linked to childhood-onset sensorineural hearing loss. The resulting offspring showed sensorineural hearing loss, which was transmitted to the F1 generation, providing proof of concept that eTd-mtABEs can be used to create animal models of disease.

In the companion paper, Chen, Li and their colleagues used the adenine TALE base editor to model Leigh disease in rats using a similar strategy. The resulting rats showed reduced motor coordination and muscle strength, defects that were obtained with editing efficiencies of only 54% on average. To test if the abnormalities could be reversed, the authors then used a cytosine TALE base editor in zygotes from the mutant rats. On average, the editing efficiency was only 53%, but this was enough to rescue the disease phenotypes.

This is the first report of direct correction of mtDNA mutations via a TALE base editor in an animal model. The next step will be to show feasibility in a model after disease onset (only the UK and Australia allow maternal spindle transfer therapy for mitochondrial diseases; no country has permitted mitochondrial base editing in human zygotes).

Achieving effective therapeutic mitochondrial base editing in affected target tissues will thus require efficient AAV delivery. For LHON, an already approved FDA AAV-2 product transduces the optic nerve and retinal ganglion cells, providing a translational path; GenSight Biologics also recently published 5-year outcome data for its AAV-2 therapy Lumevoq (lenadogene nolparvec) in LHON. But AAV delivery in other mitochondrial conditions will not be as simple: MELAS patients, for example, require efficient transduction of the CNS, kidney, skeletal muscle and cardiac muscle; MIDD patients need AAV delivery to the pancreas, inner ear, retina and kidney. Although a commercial AAV vector (AAVrh74) is available for muscle (Sarepta’s Elvidys), vectors that reach many of these other tissues have yet to be commercialized and may require next-generation AAV capsids and/or refinement of machine-guided design of cell type-specific synthetic promoters to reach target organs.

It is encouraging that the roughly 50% base conversion rate achieved in these new studies exceeded the heteroplasmy threshold required for disease manifestation and therapeutic rescue. At the same time, despite this remarkable success, concerns remain about off-target effects — both in mitochondrial and nuclear genomes — and narrow therapeutic windows. And with base editing approaches so far behind conventional gene therapies like Lumevoq in development, compelling commercial and clinical advantages benchmarked against best-in-class gene therapy will be needed to convince investors to back these approaches.

One parting thought: the past year has seen a noticeable uptick in publications on mitochondrial base editing technology from labs outside of the US. TALEN specialist Cellectis, headquartered in Paris, France, acquired 19% of equity in the mitochondrial base editing company Primera Therapeutics in 2022, ostensibly for its rapid TALE assembly platform (FusX System), which streamlines TALE repeat construction. In South Korea, Jin-Soo Kim at the Korea Advanced Institute of Science and Technology (KAIST) recently co-founded startup Edgene with Myriad Partners to develop mitochondrial base editors based on his seminal work on TALE-linked deaminases (TALEDs) enabling A to G conversion, which he has continued to optimize. According to Biocentury, 8 out of 13 base editing studies published in 27 translational journals over the past year came from labs in China. Wensheng Wei’s group at Peking University, a founder of Edigene in Beijing, continues to work on mitobase editors, with two recent patents on strand-selective mitochondrial editing. And Jia Chen of ShanghaiTech University, China, and his collaborators Li Yang and Bei Yang, are scientific advisors to Correctseq in Shanghai, which is developing transformer base editors for ex vivo and in vivo applications. It seems that mitochondrial base editing may be another area where US biotech may soon be finding itself chasing the dragon. David Liu and Beam Therapeutics may have something to say about that.

Papers: Best of the rest

Target biology

TRMT6-mediated tRNA m1A modification acts as a translational checkpoint of histone synthesis and facilitates colorectal cancer progression | Nature Cancer

GPR45 modulates Gαs at primary cilia of the paraventricular hypothalamus to control food intake | Science

Epitopea founders show 99% of MHC class I-associated peptides on tumors are from non-mutated proteins in non-small cell lung cancer and melanoma | Nature Cancer

Efflux of N1-acetylspermidine from hepatoma fosters macrophage-mediated immune suppression to dampen immunotherapeutic efficacy | Immunity

Therapeutics

Methotrexate exerts antitumor immune activity and improves the clinical efficacy of immunotherapy in patients with solid tumors | Science Translational Medicine

Mutant KRAS peptide targeted CAR-T cells engineered for cancer therapy | Cancer Cell

Pharmacological inhibition of PSPH reduces serine levels and epileptic seizures | Nature Chemical Biology

Pharmacological inhibition of NR2F2 restores hormone therapy response to endocrine refractory breast cancers | Science Translational Medicine

Drug delivery

Dual selective organ-targeting lipid nanoparticles for concurrent base editing in liver and lungs in human PiZ SERPINA1(Glu342Lys mutation) transgenic mice models and patient fibroblasts| Nature Biotechnology

Sequential drug release system: Targeting the tumor ECM for enhanced chemotherapy efficacy | PNAS

Startup news

Several bits of news concerning funding for early-stage biotech startups and translational investigators:

European Commission announces EU Startup and Scaleup Strategy, including Scaleup Europe Fund

University of Texas MD Anderson Cancer Center Cancer Focus Fund eyes a $250 million second fund

New Amplify Bio Fund I provides $200 million for 20 investments exclusively in pre-seed, seed and Series A rounds, with check sizes from $1.5 million to $10 million.

Harrington Discovery Institute at University Hospitals is inviting letters of intent for 2026 Harrington Innovator Award grants of $100K

Korean startup Atheonbio developing PDL1 sensitizer wins prize at J&J Singapore Quickfire Challenge

Soffinova fund strikes deal with Nvidia to give portfolio companies access to AI provider’s DGX Cloud Lepton platform

Selected preclinical startups focusing on therapeutics @ Yale’s Innovation Summit 2025:

Startup (location) Scientific founders (affiliation) Funding (Millions) Focus
Sustained Drug Delivery (Vancouver, Canada) Vicente Diaz (Yale University, New Haven, CT) C Michael Samson (Manhattan Eye, Eye, Nose & Throat Hospital, NY) and Richard Eiferman (University of Louisville, KY) $0.3 pre-seed grant (Blavatnik) Collagen wafer conjunctival implant for 6-month delivery of latanoprost for glaucoma
State 4 Therapeutics (New Haven, CT) Richard Kibbey, Matthew Merrins and Ania Jastreboff (Yale University, New Haven, CT) $1 pre-seed grant (Blavatnik) Small-molecule pyruvate kinase activator as adjunct/combination therapy with incretin agonists and to counter muscle loss for obesity
D2B3 (New Haven, CT) Anne Eichmann and Kevin Boyé (Yale University, New Haven, CT and INSERM, Paris) $0.5 SAFE note (Mission BioCapital) Conjugating brain impenetrant small molecules and ASOs to fully human IgG2 mAb that blocks Netrin-1 binding to Unc5B, causing transient BBB breakdown and disruption of Wnt signaling
CellInfinity (West Haven, CT) Sidi Chen (Yale University, New Haven, CT) $16 in seed funding In vivo lentiviral TRAC locus-transduced ectonucleotide pyrophosphatase/phosphodiesterase 3 (EPP3)-targeting-CAR T cells with CTLA-4 C-terminus and CRISPR-mediated knockout of PRDM1 for renal cell carcinoma
Altera Therapeutics (New Haven, CT) Peter Glazer (Yale University, New Haven, CT), Elias Quijano (Northpond Ventures) and Zaira Ianniello (Yale University, New Haven, CT) ND Cell-penetrating antibodies taken up by equilibrative nucleoside transporter-2 in gynecologic and liver cancers
Micoy Therapeutics (Brooklyn, NY) Prem Premsrirut (Mirus, Brooklyn, NY) $0.13 in pre-seed crowd-funding from StartEngine Decoys against interferon autoantibodies comprising engineered signaling-inert mutant IFN-I that lack IFNAR engagement for immunosuppressed older adults susceptible to pneumonias

Preclinical funding

Date Company (location) Amount (millions) Funding type (lead investors) Therapeutic (lead) focus
June 3, 2025 Kamari Pharma (Ness Ziona, Israel) $23 Series A (BRM Group and Pontifax) Small-molecule TRPV3 inhibitors for Olmstead syndrome, keratoderma and ichthyosis
June 4, 2025 Spica Therapeutics (Brussels, Belgium) €10 Seed (Bioqube) Anti-CD163 ADCs to deplete macrophage subsets associated with oncological, fibroinflammatory or autoimmune diseases
June 10, 2025 Antares Therapeutics (Boston, MA) $177 Series A (Omega Funds, Atlas Ventures, Lightspeed Ventures, BVF Partners, and Cormorant Asset Management) Clinic-ready small-molecule inhibitors of undisclosed kinase targets in oncology

Preclinical deals

Date Type Payer (location) Payee (location) Upfront payment (millions) Milestones amount (millions) Total (up to millions) Therapeutic Lead Focus
June 9, 2025 R&D collaboration Psilera (Orlando, FL) Hesperos (Tampa, FL) ND ND ND Hespera will test Psilera’s small-molecule psilocybin derivative PSIL-006 for frontotemporal dementia in organ-on-a-chip system
June 10, 2025 License and commercialization Grifols (Barcelona, Spain) XL-protein (Freising, Germany) ND ND ND XL-protein will apply its PASylation (adding polymeric Pro-Ala-Ser chains) to Grifols drugs to extend their halflife
June 10, 2025 Milestone payment AstraZeneca (London, UK) Quell Therapeutics (London, UK) -- $10 -- Preclinical milestone for engineered Treg cell therapy for irritable bowel disease
June 12, 2025 Reverse merger Crescent Biopharma (Rockville, MD) Glyco-mimetics (Nasdaq: GLYC; Rockville, MD) -- -- 25.3 million shares on a fully diluted basis Tetravalent PD-1 x VEGF bispecific antibody for solid tumors and ADCs (using topoisomerase inhibitors) against undisclosed targets

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Until next week,

Juan Carlos and Andy

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