Diagonal Therapeutics, a biotechnology company developing disease-modifying clustering antibodies that correct dysregulated signaling in severe genetic diseases, today announced the closing of an oversubscribed $125 million Series B financing co-led by Sanofi Ventures and Janus Henderson Investors, with participation from both existing and new investors.
New investors include Deep Track Capital, EcoR1 Capital, Logos Capital, Balyasny Asset Management L.P. and Woodline Partners LP. Existing investors include Atlas Venture, BVF Partners, Lightspeed Venture Partners, RA Capital Management, Frazier Life Sciences, Viking Global Investors, RV Invest, Velosity Capital, Biovision Ventures, and Checkpoint Capital. Paulina Hill, Ph.D., Partner at Sanofi Ventures, will join Diagonal’s Board of Directors in conjunction with the financing.
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Proceeds will support advancement of DIAG723, a first-in-class, disease-modifying clustering antibody designed to correct the underlying cause of hereditary hemorrhagic telangiectasia (HHT) and pulmonary arterial hypertension (PAH), conditions that collectively impact hundreds of thousands of people around the world. Diagonal expects to initiate its first-in-human trial for DIAG723 in HHT patients during the first half of 2026.
“DIAG723 has exhibited robust disease-modifying activity in several preclinical models of HHT and PAH, demonstrating its ability to prevent and reverse disease pathology and restore normal signaling in cells derived from patients,” said Alex Lugovskoy, Ph.D., Founder and CEO of Diagonal Therapeutics. “We are deeply grateful to our new and existing investors for their support as we advance DIAG723 into the clinic, with the goal of delivering a life-changing therapy for patients in need of effective treatment options. This financing also enables us to advance our pipeline of additional clustering antibody therapeutics.”
“Diagonal’s unique clustering antibody approach has the potential to address the root cause of genetic diseases that originate from impaired receptor signaling,” said Paulina Hill, Ph.D., Partner at Sanofi Ventures. “We are excited to support this innovative company led by an experienced team with a strong track record of operational excellence, deep commitment to improving patients’ lives, and bold vision for transforming care in severe genetic diseases.”
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