After more than a decade steering Johnson & Johnson’s oncology drug R&D, Peter Lebowitz is ready for his next challenge: shepherding the “third arc” of biologics development.
“The first one was single targets for the antibody and binding to a cytokine or cell surface receptor. The second one was engineering those antibodies a little differently, either modifying the Fc, putting on a toxin, putting on a radioconjugate,” Lebowitz said in an interview with Endpoints News. “The third is multispecific antibodies that actually bind to different cell types and bring in new biology.”
In that vein, Lebowitz is now running a new biologics startup named Third Arc Bio founded by another former J&J leader: Sanjaya Singh.
The company raised a $165 million Series A that will be used to move three experimental multispecific antibodies for solid tumors and inflammatory and immunology (I&I) diseases into the clinic. The unveiling was announced the same morning as the launch of another biologics-focused oncology and immunology biotech. Earlier on Tuesday, Flagship Pioneering took the wraps off a $50 million commitment to its Abiologics offshoot.
Founded in 2022, Third Arc Bio is working on multispecific antibodies for solid tumors, inflammatory bowel disease, rheumatoid arthritis, lupus and so-called Th2 diseases, which entail a broad scope of inflammatory conditions, according to Lebowitz.
“At J&J, I saw all the platforms. We had them all. I specifically wanted to work on [multispecific antibodies] because this is the area where there is the largest opportunity to meet unmet need,” Lebowitz said. “There’s a lot of interest in ADCs now, and ADCs are very important. But this is the area that is right in the right spot of the breaking point where it goes over the edge and actually is transformational for solid tumors.”
He “retired” from J&J on Jan. 1 and joined Third Arc as CEO on Jan. 2. In his role as head of oncology R&D, Lebowitz solidified the pharma giant’s work in CAR-T cell therapies with partner Legend Biotech and oversaw a series of wins in multiple myeloma, among other areas of oncology.
While at J&J, he worked with Third Arc founder and chief scientific officer Singh, in addition to chief operating officer Joe Erhardt. The trio has “collectively delivered 19 new medicines,” Lebowitz said. Debi Watson, another longtime J&J leader, is the startup’s chief business officer.
‘Atypical Series A’
Oncology remains a big area of investment for biotech venture capitalists, and I&I continues to drum up large financings and M&A deals. With a pipeline spanning both areas, Third Arc was able to attract the 58th private biotech megaround of 2024, according to Endpoints’ ongoing tally.
Omega Funds laid the foundation for the Philadelphia-area biotech with a $32 million seed round in 2022. Third Arc started from scratch, with no pharma ties or in-licensed assets, Lebowitz said. Another biotech that Singh co-founded, the CNS-focused Aliada Therapeutics, began with a platform from J&J.
Francesco DraettaWith Lebowitz at the helm, the team quickly went to work raising the Series A. They had set out to raise $100 million but wound up attracting a long list of public and crossover-type investors that give the startup optionality for future financing routes, according to Lebowitz. The Series A is expected to sustain the biotech through 2027, Omega Funds managing partner Francesco Draetta said in an interview.
The Third Arc team has “brought in the most TCEs into the clinic,” Vida Ventures managing director Arjun Goyal said, referencing T cell engagers. “It’s not that they just know biologics or oncology. They actually know the format and format design here very well, which is more of an art than it is a science.”
Arjun GoyalVida led the Series A, which also included Cormorant Asset Management, Hillhouse Investment, Goldman Sachs Alternatives, BVF Partners, T. Rowe Price, Janus Henderson Investors and Foresite Capital, among others. AbbVie’s corporate venture arm also took part. Singh is a co-inventor of the blockbuster autoimmune treatment Skyrizi, which was developed by AbbVie and Boehringer Ingelheim, Singh’s former employer.
“This is an atypical Series A syndicate in that most investors are public market specialists,” Goyal said. “You don’t see that as often today as you did four, five, six years ago. That also speaks to the reputation of Peter and his team.”