Exclusive: Interview with iBio and How it Plans to Use New Capital from its Latest Public Offering
The S.D. biotech is betting on a capital structure that rewards long-term investors.
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iBio, publicly traded biotech company developing therapies for obesity and cardiometabolic disorders, recently raised $50 million in a public offering.
Martin Brenner, chief executive officer — who previously held leadership roles at Eli Lilly, Pfizer, AstraZeneca and Merck — and CFO Felipe Duran told me over Zoom, that ibio was turned around strategically three years ago.
“Around September of 2022, iBio’s story began to really change,” said Duran, chief financial officer. “We acquired the assets of a company called RubrYc Therapeutics, which brought us the platform that we use today.”
“It also allowed us to bring over some fantastic scientists who are now part of our team, plus a strong immuno-oncology pipeline. That’s when Martin and I both knew—there’s something here.”
Founding Story
Founded in 2008 and pivoted in 2022, iBio is focused on developing therapeutics that deliver quality weight loss by reducing obesity.
iBio’s technology is a machine learning–based platform that designs and optimizes precision antibodies. These antibodies can target specific regions of a protein, known as epitopes, with greater accuracy.
Last year, the company inked a collaboration with its existing partner AstralBio in a deal valued at $29M. In particular, it hopes to test a preclinical anti-myostatin antibody that could induce weight loss while retaining muscle mass.
iBio is also engaged in an undisclosed research partnership with a major pharmaceutical company, as it sees a lucrative opportunity in a crowded market dominated by GLP-1 drugs.
ibio’s strategy is focused on “rinse-and-repeat” execution. Bringing unique antibodies into the clinic, progressing early-stage trials, and securing partnerships rather than pursuing large-scale commercialization efforts.
Outside of obesity, iBio is focusing on hard-to-drug antibodies in the cardiometabolic space, but can target many other therapeutic areas, according to its executive team.
“We’re currently in non-human primates with this antibody, and we’re starting IND-enabling studies next month. That means beginning the manufacturing process, safety studies, and so on,” said Brenner. “It’s a really attractive target—and the antibody has huge advantages.”
Plans for New Funding and Thoughts on San Diego
iBio plans to remain a lean and nimble biotech startup, operating with a disciplined capital structure that incentivizes long-term investors through pre-funded warrants tied to future milestones.
This structure positions the company to return to its investor base as new data emerges, particularly as its pipeline advances from Phase 1 to Phase 2, according to Felipe Duran iBio’s chief financial officer.
“We’re a 20-person company, but we’re nimble and efficient. Our capital structure is designed to reward long-term investors, and our focus is on advancing unique antibodies into the clinic, then partnering to take them beyond Phase 2. That’s what excites people about iBio, doing more with less and delivering meaningful innovation.”
We wrapped up the conversation discussing the advantage of building a biotech company in San Diego compared to other hubs such as San Francisco or Boston.
“San Diego is a fantastic breeding ground for entrepreneurially minded scientists. This is very unique. This is better than the Bay Area. This is better than Boston. And you see it—if you build a company here and sell that company, you’re starting your next shop here as well,” said Martin Brenner, chief executive officer and chief scientific officer at iBio.
“What this breeds is this really, tight community of people who know how to build this. We have an ecosystem here that is second to none — in my eyes.”