Degron Therapeutics will have stiff competition in immunology, as Novartis inked a $5.7 billion agreement with Monte Rosa Therapeutics last year to develop molecular glues for undisclosed immune-mediated conditions.
Degron Therapeutics has raised $40 million in a series A extension that will not only bankroll the continued development of its lead asset but also help the Chinese biotech expand its molecular glue platform into immune-driven diseases.
Not much is known yet about Degron’s immunology push, but the company plans to identify a molecular glue candidate that it can move forward with this year, according to a news release on Thursday. If this pans out, Degron would be treading a relatively uncharted path, as the vast majority of activity in the molecular glue space is focused on oncology.
Last month, for instance, Roche deepened its partnership with C4 Therapeutics, paying $20 million upfront and betting up to $1 billion in milestones for two glue-antibody conjugates, which the pharma plans to advance for undisclosed oncology targets. Other cancer-focused glue deals from Big Pharma include Lilly’s $1.2 billion play with Magnet Biomedicine and Roche’s $2 billion alliance with Orionis Biosciences.
Still, Shanghai-based Degron will go up against a giant in the immunology arena, with Novartis in September 2025 inking a $5.7 billion agreement with Monte Rosa Therapeutics to develop molecular glues for undisclosed immune-mediated conditions.
Degron is also playing in the cancer space, with the bulk of its series A haul earmarked for its lead candidate DEG6498, currently in Phase 1 testing for advanced solid tumors. The company started dosing patients in this trial late last year.
Designed to be available orally, DEG6498 is a potentially first-in-class molecular glue degrader that targets the human antigen R (HuR) protein, which according to the biotech’s website is a central player in driving cancer, inflammation and metabolic disorders—and yet is considered undruggable. DEG6498 triggers the targeted destruction of HuR by binding it to the cell’s internal degradation machinery.
With Friday’s series A extension, Degron’s total raise has now hit $95 million, a sum that includes the biotech’s initial debut proceeds of $22 million in June 2022. In May 2024, Degron again received an infusion of capital when it secured a Takeda partnership. The companies at the time did not provide a specific financial breakdown of the agreement, only disclosing that its total value could hit $1.2 billion.
Degron’s series A extension was led by China-based Lapam Capital, with participation from Fortune Capital, CSPC & Growth, GTJIA Investment Group, ApicHope and others.
