Laronde, a biotechnology company in its early stages, caught my attention. Although I don't usually get excited like this, I find it hard to resist when I see potential. Laronde just raised $440 million in Series B funding.
This is the biggest deal in biotech funding of the year. It is one of the biggest in history. This is because the company has kept its secrets about what it's doing. Just a few months ago, the company came out of stealth mode.
Flagship Pioneering is backing Laronde, one of the most prominent venture capital (VC) firms in the biotech sector. Now we understand why this undertaking is getting so much attention behind closed doors. The company is the pioneer of what it calls "endless'' RNA (eRNA) technology.
Laronde's "endless'' RNA (eRNA) technology will interest our regular readers as we explore the company's potential. We are familiar with the messenger RNA (mRNA), technology that Moderna (MRNA), and BioNTech (BNTX), used to create their COVID-19 vaccines.
Both companies saw substantial investment gains. BNTX has risen by 873% in the last year since 2020; as I write, Moderna has risen 2,076% over the same period.
Laronde's eRNA technology can be considered the next generation in RNA therapeutics. Its potential is even more significant. Here are some reasons why.
The mRNA technology is a straight strand RNA that has a defined beginning and end. Moderna therapies are used to "teach" cells how to make specific disease-fighting proteins.
The same thing is true for eRNA therapies. They instruct the body how to make specific proteins that fight disease. The difference between eRNA and RNA is that it is circular. It does not have a beginning or an end. This is why it is called "endless" RNA.
This is because eRNA cannot latch onto ribosomes within the body due to its circular shape. This is what happens to mRNA therapies and effectively ends their therapeutic effects.
Laronde's circular structure of medicines gives the potential for longer-lasting effects. The treatments can be used inside the body for up to weeks or even months.
eRNA therapeutics can be used to treat a variety of diseases. The company intends to concentrate on a dozen areas, including dermatology, genetic diseases, and oncology. We do not have any more information, but we know that Laronde has been successful with animal trials.
The company has set a goal to create 100 new drugs in the next ten years. This is a total of 10 new therapies per year. Talk about potential moonshots. It wouldn't have been possible to raise $440 million if this biotech company wasn't doing something that was useful.
Laronde is an early-stage company, and it's swinging for the fences. We are interested in what the next Moderna could look like if the company's early successes translate into human clinical trials. The company has the potential to be a 20-bagger.
This biotech company is one that we absolutely must have on our trading radar watch list.