From nine-figure rounds to emerging startups, the latest flurry of biotech funding underscores growing momentum across the pharmaceutical innovation landscape. The biotech sector is experiencing a surge in investments in treatment options for hair loss, obesity, cardiovascular diseases, and non-small cell lung cancer. Companies such as Kardigan, Pelage, and Kailera all have recently announced major funding rounds, along with Candel Therapeutics revealing its new strategic collaboration.

Pelage Pharmaceuticals

Pelage Pharmaceuticals recently closed its $120 million Series B financing co-led by ARCH Venture Partners and Google Ventures, with participation from existing investors including Main Street Advisors, Visionary Ventures, and YK Bioventures.¹ The funding round is expected to support the advancement of Pelage’s lead program, PP405, a topical small molecule designed to reactivate dormant hair follicle stem cells, offering a potential first-in-class approach for both men and women experiencing hair loss.¹

“At Pelage, our goal is to deliver a clinically tested treatment to combat hair loss, grounded in innovative science. Despite the growing need for treatments for hair loss, which affects more than 80% of men and 40% of women throughout their lifetimes, innovation has been lacking, and a new FDA-approved option has not become available for decades,” said Daniel Gil, Ph.D., Chief Executive Officer of Pelage Pharmaceuticals. “Our approach is based on the groundbreaking discovery that hair follicle stem cells have a unique metabolic switch. Supported by over ten years of bench research on the mechanism and associated biological pathways, we have designed a first-in-class investigational treatment that reactivates these hair follicle stem cells to regrow hair. This new funding from leading investors reinforces not only the need in the space, but the quality of our scientific approach and clinical results to date, which are enabling us to enter Phase 3 trials for lead program PP405 in 2026.”

Kardigan

Kardigan announced its completion of a $254 million Series B financing, which included contributions from new investors such as Fidelity Management & Research Company, and accounts advised by T. Rowe Price Investment Management, Inc. Kardigan also saw support from ARCH Venture Partners and Sequoia Heritage, both of which have previously invested during previous funding rounds. The company is aiming to use the funds gathered during the Series B raise to advance its portfolio of complementary candidates to target the underlying drivers of specific types of dilated cardiomyopathy (calcific aortic valve stenosis and acute severe hypertension.²

“The support of our new and existing investors affirms the strength of Kardigan’s differentiated scientific strategy and bold vision to make cardiovascular disease preventable, curable, and no longer the leading cause of death in the world,” said Tassos Gianakakos, co-founder, chief executive officer, and chair of Kardigan. “We are building a different, capital-efficient company powered by science, data, and technology. With cardiac intelligence, Kardigan is advancing an unparalleled understanding of the heart, redefining the model for therapeutic innovation — one designed to address cardiovascular diseases at their source rather than just manage symptoms.”

Kailra Therapeutics

Kailira recently revealed its $600 million Series B financing led by new investor Bain Capital Private Equity.³ According to a press release from Kailra, the financing will be fully funded at closing and will support the Kailra’s advancement of its leading obesity portfolio, which includes a global Phase III clinical program of Kailera’s lead candidate KAI-9531.³ The lead candidate, KAI-9531, is an injectable dual GLP-1/GIP receptor agonist that holds the potential to be a best-in-category weight loss treatment.

Kailra’s Series B round consisted of a mix between new and existing investors, including the following.

• Adage Capital Management LP
• Canada Pension Plan Investment Board
• Invus
• Janus Henderson Investors
• Perseverance Capital
• Qatar Investment Authority
• Royalty Pharma
• Surveyor Capital
• Accounts advised by T. Rowe Price Associates, Inc
• An undisclosed large mutual fund
• Atlas Venture
• Bain Capital Life Sciences
• RTW Investments
• Sirona Capital

“We are excited to welcome our new investors and extend sincere appreciation to our current investors for their continued confidence in our vision,” said Ron Renaud, president and chief executive officer, Kailera. “With an increasing global population affected by obesity and limited options for those living with higher BMIs, the need for effective treatment options has never been greater. With this funding, we will accelerate the advancement of our pipeline, including our lead program KAI-9531 that has the potential to deliver substantial weight loss for people living with obesity. We look forward to starting our global Phase III trials of KAI-9531 by the end of this year—marking a pivotal step in our mission to deliver therapies that empower people with obesity to transform their health and live fuller, healthier lives.”

Candel Therapeutics

Candel Therapeutics announced it has entered a $130 million term loan facility with Trinity Capital Inc. The loan facility is a five-year agreement, and consists of four tranches, with the first tranche of $50 million being drawn following the closing of the agreement.⁴ According to Candel’s new release, both the second and third tranches, totaling $50 million in the aggregate, are capable of being drawn to subject following the achievement of specific regulatory, clinical and operational milestones, and is subject to certain conditions described in the agreement.⁴ Under terms of the agreement, the fourth tranche of $30 million, is available at the lender’s discretion, with interest being payable on the outstanding principal amount at a fixed or floating rate at the Company’s option, and is initially 10.25% per annum.⁴ 

“This strategic financing, combined with our cash and cash equivalents of $87.2 million, as of September 30, 2025, significantly strengthens our balance sheet, positioning the Company for the initiation of a pivotal phase III clinical trial of CAN-2409 in NSCLC in Q2’26, and supporting the Company through its potential launch in early localized prostate cancer and into commercialization,” said Charles Schoch, CFO of Candel Therapeutics. “This transaction and use of proceeds reflects our disciplined capital allocation approach.”

Sources

1. Pelage Pharmaceuticals Announces $120 Million Series B Financing to Advance Regenerative Medicine Treatments for Hair Loss Pelage Pharmaceuticals October 15, 2025 https://www.businesswire.com/news/home/20251013938906/en/Pelage-Pharmaceuticals-Announces-%24120-Million-Series-B-Financing-to-Advance-Regenerative-Medicine-Treatments-for-Hair-Loss
2. Kardigan Raises $254 Million Series B to Advance Late-Stage Portfolio of Personalized Cardiovascular Medicines Kardigan October 14, 2025 https://www.businesswire.com/news/home/20251014696507/en/Kardigan-Raises-%24254-Million-Series-B-to-Advance-Late-Stage-Portfolio-of-Personalized-Cardiovascular-Medicines
3. Kailera Therapeutics Announces $600 Million Series B Financing to Further Advance Pipeline of Next-Generation Therapies for the Treatment of Obesity Kailera Therapeutics October 14, 2025 https://www.globenewswire.com/news-release/2025/10/14/3165992/0/en/Kailera-Therapeutics-Announces-600-Million-Series-B-Financing-to-Further-Advance-Pipeline-of-Next-Generation-Therapies-for-the-Treatment-of-Obesity.html
4. Candel Therapeutics Enters into $130 Million Term Loan Facility with Trinity Capital Inc. Candel Therapeutics October 14, 2025 https://www.globenewswire.com/news-release/2025/10/14/3166168/0/en/Candel-Therapeutics-Enters-into-130-Million-Term-Loan-Facility-with-Trinity-Capital-Inc.html