Sonoma’s therapies harness regulatory T cells (Tregs), shown here in red interacting with another type of immune cell, in blue. (National Institute of Allergy and Infectious Diseases/NIH Photo)

The news: Sonoma Biotherapeutics is partnering with Regeneron to co-develop cell therapies for Crohn’s disease and other autoimmune conditions. The agreement comes with a $75 million upfront payment and a potential $45 million milestone payment to Sonoma by Regeneron, a Tarrytown, N.Y.-based biotech giant. The deal builds on a massive $265 million Series B round raised in 2021 by Sonoma, a three-year old startup that operates in Seattle and South San Francisco.  

The background: Sonoma’s cell therapies take aim at autoimmunity, which results from an overactive immune response. Sonoma CEO and co-founder Jeff Bluestone describes autoimmune disease this way: “There’s a battle between this army of cells trying to kill off your tissue and this army of cells that’s trying to protect it.” Sonoma’s experimental therapies increase the action of the protectors, a type of cell called a regulatory T cell (Treg).

Sonoma’s lead cell therapy product for rheumatoid arthritis could enter clinical trials this year, and the company is also working on another condition. “The Regeneron deal is going to give us a runway to a number of other disease areas,” said Bluestone.

Sonoma Biotherapeutics CEO Jeff Bluestone. (Sonoma Photo)

The people: Before helming Sonoma, Bluestone had a long research career as an immunologist that included leading the Parker Institute for Cancer Immunotherapy. Bluestone joined Sonoma to overcome the “roadblocks” in academia and get treatments to patients, he said.

Bluestone helped cut the deal with Regeneron co-founder, president and chief scientific officer George Yancopoulos, whom he has known for many years. “He and I have quite similar philosophies about our companies, driven by science first. We also share both a sense of opportunity and responsibility.”

Sonoma’s tech: Sonoma engineers Tregs to home in on molecular targets that are associated with disease. One target is a protein found in the joints of people with rheumatoid arthritis. Target recognition occurs via a component of an antibody engineered into the Tregs.

Regneron’s tech: Regeneron offers a suite of technologies to identify and test antibodies directed against various targets. One of its offerings is a mouse with a human-like immune system that yields human antibodies.

Bringing it together: Regeneron and Sonoma will identify antibodies that can be tested in Treg therapies against Crohn’s disease, ulcerative colitis, and two undisclosed conditions with potential for a fifth. “This is going to give us multiple shots on goal,” said Bluestone.  

Sonoma is separately testing a compound in the clinic that it hopes to later combine with its Treg therapies. The compound kills newly-minted immune cells that can attack tissue, so-called effector cells. Tregs take aim at the same cells. Combining the compound and the Tregs could provide extra protection from autoimmune damage.

The field: The success of cell therapy for blood cancers, such as Bristol Myers Squibb’s Breyanzi, helped paved the way for cell therapy companies like Sonoma working on autoimmunity. Other companies developing Treg therapies include Sangamo Therapeutics and Seattle Children’s spinout GentiBio, which has preclinical programs for type 1 diabetes and other conditions. “We truly are just at the very birth of this new field,” said Bluestone.

The deal: The agreement is an unusually collaborative one, said Bluestone. Beyond the $75 million up-front payment, the two companies will split the costs of therapy development and will make joint decisions, such as which candidates to advance to animal and human testing.

The deal, said Bluestone, gives Sonoma the opportunity to “play in the sandbox for the long haul and create a company with a lot of opportunity and durability.” The $75 million payment includes a $30 million equity investment by Regeneron.

Company growth: Sonoma announced this summer that it is developing an 83,000 square-foot manufacturing and R&D center along Seattle’s waterfront in the former home of Seattle tech company F5 Networks. The facility should be ready for manufacturing in time for the company’s first clinical trials, said Bluestone. Sonoma employs about 130 people, with close to 65 in Seattle and the rest in South San Francisco. Bluestone said he’s looking forward to building out Sonoma further in Seattle. “We’ve hired incredible people,” he said.

Like what you're reading? Subscribe to GeekWire's free newsletters to catch every headline

Job Listings on GeekWork

Find more jobs on GeekWork. Employers, post a job here.