Gate closes $65m series B to push molecular gate drugs into the clinic

Gate Bioscience has raised $65 million in an oversubscribed series B to advance its first molecular gate candidates, a novel class of oral small molecules designed to eliminate disease-driving proteins before they are secreted. The round was led by Netherlands-based Forbion, with new backing from US pharma major Eli Lilly (NYSE: LLY).

The financing follows Gate’s recently announced discovery deal with Lilly, potentially worth up to $856 million, to develop molecular gates against intractable protein targets. Versant Ventures, a16z Bio + Health, GV and ARCH Venture Partners also joined the round. Forbion principal Vanessa Carle will take a board seat.

Gate plans to use the capital to move its lead programs into Phase I studies and progress additional inflammation-focused projects. The US biotech is also investing in its discovery engine, which integrates a compound library with secretion-focused assays to generate selective molecular gates at pace.