Strategy

Radionetics Oncology is an example of Frazier Life Sciences’ approach to company creation, to build focused companies around promising technologies spun out from larger organizations.

The FLS venture capital team co-led the creation of Radionetics along with 5AM Ventures and Crinetics (NASDAQ: CRNX) in 2021. Crinetics is a pioneer in the discovery and development of small molecule modulators of GPCR targets, and the company had generated promising “skunk-works” data on creating small molecule radiopharmaceuticals with their chemistry. However, with a company focus on endocrinology and programs in Ph3 and Ph2 development, the company decided that the best way to get value for the radiopharmaceuticals programs was to externalize the assets into a new company. The FLS public equity strategy had invested in Crinetics earlier in 2021 in a private placement based on the later stage programs, which enabled connectivity and alignment to consider a spinout.

Over a 6-month period, the FLS and 5AM teams worked with Crinetics to set up a partnership that enabled Radionetics to move rapidly against multiple novel radiopharmaceutical targets. The company started with 4 founding employees (including 2 who came from Crinetics) and rapidly grew over an 18 month period into an independent entity with a $52.5M Series A co-led by FLS, 5AM, and DCVC.

In 2024, based on progress of the company’s pipeline, Radionetics entered into a strategic agreement with Lilly that provides Lilly access to Radionetics’ GPCR targeting small molecule radiopharmaceuticals. Radionetics received $140M upfront, and Lilly obtains the exclusive right to acquire Radionetics for $1B.

Alpine highlights the cross-fund synergies within Frazier Life Sciences, with both venture capital and public equity strategies contributing to building the company over 10 years.

The FLS venture capital team co-led the Series A financing for Alpine Immune Sciences in 2016, with Jamie Topper joining the board. Alpine initially launched with a protein engineering platform using directed evolution to develop multi-targeted biologics building on native immune system proteins. The first antibody program was partnered with AbbVie, and Alpine’s third program blocking BAFF/APRIL caught the attention of the FLS public equity team because of promising clinical data from another public company hitting the same target.

In fall 2021, FLS public equity team led a PIPE financing to fund the development of this antibody, povetacicept, for autoimmune disease. The FLS team advised the company to consider clinical studies in multiple autoimmune indications to create value rapidly, including IgA nephropathy. With povetacicept’s potential best in class efficacy in IgA nephropathy, with a dramatic reduction in urinary protein as a marker of disease, Alpine’s stock moved up rapidly, and Vertex ultimately acquired the company in 2024 for $4.9B.

Krystal exemplifies the FLS public equity strategy of investing in under-the-radar biopharma companies with promising technologies, and then continuing to support those companies through development and commercialization.

FLS initially invested as the sole investor in a PIPE financing in August 2018, shortly after the company went public. Krystal’s topical gene therapy for dystrophic epidermolysis bullosa (DEB) delivered clinical data, with which FLS continued to add to its position as the program moved forward in development. In 2022, after the public biotech markets deteriorated, the FLS public equity team invested in Krystal in a bespoke ATM financing to help fund the company to FDA approval. FLS added to its position in a PIPE financing led by large holders to fund the commercial launch of Vyjuvek for DEB, and Vyjuvek has been widely adopted by physicians and patients with this debilitating disease.