When your AI-designed cancer drug shows promise in clinical trials, apparently investors pay attention. Iambic, a clinical-stage biotech company using artificial intelligence to develop medicines, just closed an oversubscribed funding round worth more than $100 million.
The timing wasn't accidental. The November 10 announcement came right after Iambic presented clinical data showing its drug IAM1363 "demonstrated anti-tumor activity and a favorable safety profile" in cancers caused by elevated levels of the HER2 protein. Those results were unveiled in October at the European Society for Medical Oncology Congress in Berlin.
Why HER2 Matters
The HER2 protein accelerates breast cancer cell growth, according to the American Cancer Society, and it shows up in other cancer types too. About 15% to 20% of breast tumors are classified as "HER2 positive," meaning they contain higher-than-normal levels of this protein. These cancers tend to grow and spread faster than HER2 negative varieties, but here's the silver lining: they're also more responsive to drugs designed to target HER2.
"We are proud of the scientific and business progress Iambic has made across its pipeline, partnerships, and platform over this past year and view this fundraise as a testament to the exceptional work of the Iambic team," said Tom Miller, Iambic's CEO and co-founder.
The market opportunity is substantial. The cancer drug market reached $252 billion in 2024 and is projected to hit $441 billion by 2029, according to international research firm Iqvia.
A Strategic Partnership
Alongside the funding news, San Diego-based Iambic announced a research collaboration with pharmaceutical giant Jazz Pharmaceuticals (JAZZ). The two companies will study how effectively Iambic's IAM1363 works when combined with zanidatamab, a drug developed by Zymeworks (ZYME) but now licensed to and manufactured by Jazz under the brand name Ziihera. The FDA approved Ziihera for biliary tract cancer in November 2024, specifically targeting HER2 proteins.
The collaboration will focus on breast cancer patients who have already been treated with Enhertu, another HER2-targeting drug produced by Japanese developer Daiichi Sankyo and UK-based AstraZeneca (AZN). It's a smart play—testing whether IAM1363 can help patients who've exhausted other treatment options.
The Money Behind the Mission
The investor roster for this round reads like a who's who of venture capital and strategic investors: Abingworth, Alexandria Venture Investments, Alumni Ventures, ARK, Ascenta, Catalio, Everbright Biofund, Freeflow Ventures, Illumina Ventures, Mubadala, Pegasus Tech Ventures, Qatar Investment Authority, Regeneron Ventures, Tao Capital Partners, Terra Magnum Capital Partners, Wilson Sonsini Goodrich & Rosati, and others participated, including both new and existing backers.
Since its founding in 2019, Iambic has now raised a total of $327 million, according to PitchBook.
What's Next in the Pipeline
Iambic isn't putting all its eggs in the HER2 basket. The company is developing additional drug therapies targeting two other cancer-enabling proteins: KIF18A and CDK2/4. These candidates could be ready for clinical trials in the near future.
The company faces competition in the increasingly crowded AI-assisted drug development space. Key rivals include Insilico Medicine in Boston, Cradle Bio in Amsterdam, and London-based Isomorphic Labs and BenevolentAI. But with fresh capital, promising clinical data, and a strategic pharma partnership, Iambic is positioning itself as a serious player in the race to use artificial intelligence to design better cancer treatments.