The San Diego-based startup’s CEO, Jim Burns, announced the closure of Locanabio on LinkedIn last week.
“It is with great sadness that I announce the difficult decision to discontinue Locanabio’s company operations by the end of 2023. While we continue to believe in the potential of our RNA-targeted gene therapy platform to deliver transformative therapies, the decision was made due to the time and capital required to deliver clinical data in the current challenging funding environment,” Burns said.
“To our Locanabio employees and all those that shared their passion, talent, and energy to help advance our mission, I express my deepest gratitude. Your contributions and commitment have been the backbone of our achievements.”
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Locanabio launched in 2016 out of the University of San Diego (UC). In May 2019, the firm raised $55 million in a Series A financing round to advance and increase its pipeline of RNA-targeting gene therapy programs, as well as bolstering its leadership team. Just over a year and a half later, the firm announced a $100 million Series B funding round to advance its portfolio, expand the technology platform, and establish a wide range of therapeutic indications.
While the firm had over $150 million in funding backed by various investors: Lightstone Ventures, Acuta Capital Partners, UCB Ventures, ARCH, RA Capital, SVB Leerink, and GV (the Alphabet VC arm), the firm cited the expensive nature associated with clinical trial requirements and gene therapies in general as the driver to shutter the business.
Burns said the firm will be sharing a resume book later this month and will seek “strategic alternatives for our programs and technology.”
He ended the post with the following statement: “My sincerest appreciation goes out to every person part of the Locanabio journey.”
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