The Biomedical Translation Fund is powering cutting-edge biotech research with support from Brandon Capital.
Melbourne biotech startup Aravax is developing a new approach to potentially treat food allergies through the commercial development of local research.
Food allergies have become a growing health concern worldwide, with peanut allergies standing out due to their serious and sometimes life-threatening reactions.
Aravax was founded in 2015 after research from Alfred Health and Monash University showed promise for a new type of peptide immunotherapy to potentially treat allergies.
The research identified parts of the allergen which causes trouble for the body’s immune cells, with Aravax developing a peptide injection to mimic these problem causing fragments.
The resulting clinical candidate, called PVX108, aims to reprogram immune cells so they can tolerate these allergens instead of triggering an allergic reaction.
If successful, this new approach to immunotherapy has the potential to help produce safe treatment options to reduce the risk of reaction.
Developing biotech products like PVX108 can be a long and uncertain process, which can make securing investment difficult for new startups.
In Aravax’s case, they were ready to go into clinical trials but did not have the funding to conduct them. They had been looking for funding for more than a year and, at the time, there were very few options for life sciences venture capital in Australia.
Seed funding from Brandon Capital through the Australian Government’s Biomedical Translation Fund (BTF) enabled them to license the intellectual property, set up Aravax and run phase 1 clinical trials in Australia.
We are at the forefront globally in terms of producing the next generation of immunotherapy. Without the early support from the BTF we wouldn’t be where we are today.
— Dr Pascal Hickey, Aravax Executive Director
Brandon Capital is a leading life science venture capital firm with offices in Melbourne, Sydney, San Francisco and London.
Its BioCatalyst fund focuses on seeding early-stage biomedical innovations, such as Aravax where they invested $12.9 million into the first phase of the PVX108 project.
Following the successful phase 1 trials, the US Food and Drug Administration cleared PVX108 for phase 2 clinical trials in the US.
Support from Brandon Capital through the BTF has enabled Aravax to progress their research to international clinical trials.
Australia is a globally recognised producer of research, but turning novel research into a therapy with the potential to improve lives takes investment. The BTF is plugging that investment gap. Without the commercialisation funding, research won’t make it out of the lab.
– Dr Chris Smith, Brandon Capital partner
The BTF fund is an equity co-investment program supporting biomedical discoveries that commercialise health and medical research outcomes.
Our department is delivering the BTF on behalf of the Australian Government Department of Health and Aged Care, with a total of $501.25 million allocated for the program between Commonwealth and private sector funding.
As a co-investment model, the Australian Government has provided a way for venture capital firms to invest in cutting-edge Australian biotechnology at an earlier stage than would normally be possible.
It can also lead to further investment opportunities, with Aravax recently completing a Series B funding round, raising US$42 million in January 2023 to expand its phase 2 trials.
Aravax’s success will encourage other Australian biotechnology researchers and companies to pursue commercialisation in Australia.
