Early-stage cancer-fighting startup raises pre-seed, launches under Houston life science leader

ready to grow

Radiomer Therapeutics has launched under Fannin Partners with an undisclosed amount of seed funding. Photo via Getty Images

Fannin Partners has done it again. The Houston-based life science development group behind medtech companies Procyrion and Allterum Therapeutics announced yesterday that it has launched Radiomer Therapeutics. With an undisclosed amount of pre-seed funding, Radiomer joins the $242 million-strong Fannin portfolio.

Radiomer uses Fannin’s proprietary Raptamer platform to target vectors and ligands for theranostic application. The cancer-fighting technology is a targeting agent that can address serious maladies including breast, lung, colorectal, prostate, and head and neck cancers.

And with Radiomer’s launch, Fannin is moving with its trademark aggressiveness. Lead programs expected to complete Phase 0 imaging/dosimetry trial(s) in cancer patients in the first quarter of next year. Those will be closely followed by therapeutic programs.

“Raptamers combine antibody level affinities with desirable physical and pharmacokinetic properties, and a rapid path to clinic,” Dr. Atul Varadhachary, CEO of Radiomer Therapeutics and Fannin managing partner, says in a press release. “We are deploying this unique platform to develop novel therapies against attractive first-in-class oncology targets.”

Varadhachary has operated Radiomer in stealth mode since its 2023 inception. However, Raptamer has been in the company’s portfolio since 2019. The new company has been using the platform to generate data with the rights to radiopharmaceutical applications for the past year.

“Our lead programs include Radiomers targeting both well-established and first-in-class cancer targets,” adds Dr. Phil Breitfeld, Radiomer’s chief medical officer. “Our imaging/dosimetry trials are designed to provide clinical evidence of tumor targeting and biodistribution information, positioning us to rapidly initiate a therapeutic program(s) if successful.”

For over a decade, Fannin has developed and supported promising life science innovations by garnering grant funding and using its team of expert product developers to build out the technology or treatment. The life science innovation timeline is very different from a software startup's, which can get to an early prototype in less than a year.

"In biotech, to get to that minimally viable product, it can take a decade and tens of millions of dollars," Varadhachary said on the Houston Innovators Podcast earlier this year.

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Procyrion has announced the closing of its series E round of funding. Photo via Getty Images

Houston medical device company secures $57.7M to fund journey to FDA approval, commercialization

fresh funding

Houston-born and bred medical device company, Procyrion, has completed its series E with a raise of $57.7 million, including the conversion of $10 million of interim financing.

Procyrion is the company behind Aortix, a pump designed to be placed in the descending thoracic aorta of heart failure patients, which has been shown to improve cardiac performance in seriously ill subjects. The money raised will allow the company to proceed with a the DRAIN-HF Study, a pivotal trial that will be used for eventual FDA approval and commercialization.

The Aortix is the brainchild of Houston cardiologist Reynolds Delgado. According to Procyrion’s CSO, Jace Heuring, Delgado, gained some of his experience with devices for the heart working with legendary Texas Heart Institute surgeon O.H. “Bud” Frazier. He filed his first patents related to the Aortix in 2005.

Heuring says that the first prototypes were built in 2011, followed by the final design in 2018. CEO Eric Fain, a California-based MD and with more than 30 years in the medical device industry, joined the company in 2018 ahead of the final design, primed to bring Aortix to the public. He visits the company’s Houston headquarters, across the street from Central Market, on a regular basis.

The device’s pilot study of 18 patients was completed in 2022. Those encouraging results paved the way for the current study, which will include an enrollment of 134 patients. The randomized study will seek to treat patients with acute decompensated heart failure. Half will be treated with standard-of-care therapy, the other half will be catheterized with an Aortix pump. A separate arm of the study will seek to treat end-stage heart failure patients who would otherwise be deemed too sick for either a transplant or an LVAD permanent pump. Fort-five healthcare centers in the United States will participate, including Texas Heart Institute.

“One of the key characteristics is [the patients] are retaining a lot of fluid,” explains Heuring in a video interview. “And when I say a lot, I mean it could be 25 or 30 or 40 pounds of fluid or more. When we put our pump in, one of the main goals is to reduce that fluid load.”

On average, about 11 liters of fluid came off of each patient. Many of those end-stage patients had previously been considered for both a heart and kidney transplant, but after using the Aortix, their kidneys responded so well that they were able to get only the heart transplant.

“These patients really are in dire straits and come into the hospital and today the only proven therapy to help these patients is to administer high doses of intravenous diuretic and some other cardiac drugs and in about 25 percent of patients those therapies are ineffective,” says Fain.

If Aortix gains approval, these sickest of the sick, usually consigned to hospice care, will have hope.

Thanks to the Series E, led by Houston’s Fannin Partners, returning investors, including Bluebird Ventures, the Aortix is inching closer to commercialization. Besides funding the DRAIN-HR study, Procyrion will also use the funds for internal programs to improve product manufacturability. One more step towards meaning advanced heart failure may not always be a death sentence.

Last month, Atul Varadhachary, managing director of Fannin, joined the Houston Innovators Podcast and alluded to Procyrion's raise. The company was born out of Fannin and still resides in the same building as Fannin.

Aortix is a pump designed to be placed in the descending thoracic aorta of heart failure patients. Photo via Procyrion

Atul Varadhachary of Fannin joins the Houston Innovators Podcast. Photo via LinkedIn

Houston innovator plays the long game of life science innovation with optimized capital efficiency

HOUSTON INNOVATORS PODCAST EPISODE 222

Commercializing a life science innovation that has the potential to enhance or even save the lives of millions of patients is a marathon, not a sprint. That's how Atul Varadhachary thinks of it, and he's leading an organization that's actively running that race for several different early-stage innovations.

For over a decade, Fannin has worked diligently to develop promising life science innovations — that start as just an idea or research subject — by garnering grant funding and using its team of expert product developers to build out the technology or treatment. The model is different from what you'd see at an accelerator or incubator, and it also varies from the path taken by an academic or research institution.

The life science innovation timeline is very different from a software startup's, which can get to an early prototype in less than a year.

"In biotech, to get to that minimally viable product, it can take a decade and tens of millions of dollars," Varadhachary, managing director at Fannin, says on the Houston Innovators Podcast.



Fannin addresses what Varadhachary calls a twin bottleneck in Houston's life science innovation ecosystem. Not only does Houston not attract the funding biotech startups need desperately to grow their companies, but hiring is a major issue as the city isn't home to an established labor pool of experienced product developers within the industry.

"The challenge is that product development is more complex — it requires innovation, but that's not sufficient. When you ask people why we lag in the product development in the life sciences — although we are home to the largest medical center in the country, we don't even make list of top 10 biotech clusters — the usual answer is that we don't have enough biotech investors," Varadhachary says.

"But that puts the cart before the horse," he continues. "Investors invest in people not just ideas. Although we have an amazing pool of researchers and clinicians, we lack experienced product developers."

In more ways than one, Fannin is addressing this problem. For all of its several ongoing programs, Fannin acts as the leadership team for the technologies. Its core employees — there are about 20 currently — work on all of the companies, which are developing a range life science innovations, from Brevitest, a point-of-use immunoassay platform, to Procyrion, an intra-aortic pump for congestive heart failure patients.

Fannin's programs also range in stage, which Varadhachary outlines on the show to be three different phases. The earliest stage programs will have Fannin's team working directly on early testing, product development, and grant writing, while the later stage programs will have built out a dedicated team and raise venture investment.

Another way Fannin is addressing Houston's lack of life science product developers is through its Fannin Talent Development Program, which has given around 350 individuals an opportunity to gain critical product development experience.

With 10 years under its belt, Fannin — as well as the greater Houston life science innovation ecosystem — is at a point where it can soon produce exits needed to firm up Houston as a life science leader.

"Clearly, we've got the base elements required to be a successful ecosystem, and they continue to grow," Varadhachary says of Houston. "Typically you need one or two really big success stories — especially if those success stories result in a company being sold, leaving behind experienced product developers with money in their pockets — that's often what will supercharge the next cycle of development. I'm hoping that will happen in Houston in the next five years, decade, or so."

Houston-based Procyrion has closed a $30 million round — doubling its total funding to date. Getty Images

Houston medical device company closes $30 million round

Follow the money

A clinical-stage medical device company based in Houston has rounded up $30 million for its Series D funding. Procyrion Inc.'s round was lead by Bluebird Ventures — a new funding partner for the company.

Procyrion is developing a blood pump, called the Aortix™ system, that's optimized for patients with heart and kidney failure. Joining in on the round with Bluebird are return investors, including Fannin Partners, Scientific Health Development, the State of Texas, and an undisclosed strategic investor. This round has now more than doubled the company's total funding, bringing that figure now to $59 million.

"Of the more than 1 million patients per year in the U.S. admitted to the hospital with acute decompensated heart failure, 25 to 30 percent also have worsening renal function," says Eric S. Fain, president and CEO of the company, in a release. "These are typically the most difficult to treat patients with high mortality and rehospitalization rates."

The funds, Fain says, will go toward advancing the medical device, specifically enhancing the system's ability to decongest cardio renal patients in the company's pilot program.

"Today there is a major gap in effective therapies that are available to treat these critically ill patients, and as such, there is a significant opportunity to improve patient outcomes," Fain continues in the release. "The Aortix device is uniquely designed and positioned in the body to simultaneously decrease the workload of the heart and improve kidney function."

The Aortix device is a solution for patients who haven't seen success from medical therapy, but don't have the immediate need for a transplant or more drastic solution. The device is thinner than a pencil, the release says, and can be inserted in a matter of minutes in a cath-lab setting. The size and ease of application could be transformational for the large population of heart patients that would need it.

In addition to the funds, Jeff Bird, managing director of Bluebird Ventures, will join the company's board of directors.

"The Procyrion Aortix device provides an elegant solution for managing heart failure, a serious and difficult-to-treat problem," says Bird in the release. "We are excited to work with this experienced team as they begin clinical testing."


The device is thinner than a pencil and can be inserted in less than 10 minutes. Photo via procyrion.com

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Rice launches 'brain economy' initiative at World Economic Forum

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Rice University has launched an initiative that will position “brain capital” as a key asset in the 21st century.

Rice rolled out the Global Brain Economy Initiative on Jan. 21 at the World Economic Forum in Davos, Switzerland.

“This initiative positions brain capital, or brain health and brain skills, at the forefront of global economic development, particularly in the age of artificial intelligence,” the university said in a news release.

The Rice-based initiative, whose partners are the University of Texas Medical Branch in Galveston and the Davos Alzheimer’s Collaborative, aligns with a recent World Economic Forum and McKinsey Health Institute report titled “The Human Advantage: Stronger Brains in the Age of AI,” co-authored by Rice researcher Harris Eyre. Eyre is leading the initiative.

“With an aging population and the rapid transformation of work and society driven by AI, the urgency has never been greater to focus on brain health and build adaptable human skills—both to support people and communities and to ensure long-term economic stability,” says Amy Dittmar, a Rice provost and executive vice president for academic affairs.

This initiative works closely with the recently launched Rice Brain Institute.

In its first year, the initiative will establish a global brain research agenda, piloting brain economy strategies in certain regions, and introducing a framework to guide financial backers and leaders. It will also advocate for public policies tied to the brain economy.

The report from the McKinsey Health Institute and World Economic Forum estimates that advancements in brain health could generate $6.2 trillion in economic gains by 2050.

“Stronger brains build stronger societies,” Eyre says. “When we invest in brain health and brain skills, we contribute to long-term growth, resilience, and shared prosperity.”

Rice Alliance and the Ion leader Brad Burke to retire this summer

lasting legacy

Brad Burke—a Rice University associate vice president who leads the Ion District’s Rice Alliance for Technology and Entrepreneurship and is a prominent figure in Houston’s startup community—is retiring this summer after a 25-year career at the university.

Burke will remain at the Rice Alliance as an adviser until his retirement on June 30.

“Brad’s impact on Rice extends far beyond any single program or initiative. He grew the Rice Alliance from a promising campus initiative into one of the most respected university-based entrepreneurship platforms,” Rice President Reginald DesRoches said in a news release.

During Burke’s tenure, the Rice Business School went from unranked in entrepreneurship to The Princeton Review’s No. 1 graduate entrepreneurship program for the past seven years and a top 20 entrepreneurship program in U.S. News & World Report’s rankings for the past 14 years.

“Brad didn’t just build programs — he built an ecosystem, a culture, and a reputation for Rice that now resonates around the world,” said Peter Rodriguez, dean of the business school. “Through his vision and steady leadership, Rice became a place where founders are taken seriously, ideas are rigorously supported, and entrepreneurship is embedded in the fabric of the university.”

One of Burke’s notable achievements at Rice is the creation of the Rice Business Plan Competition. During his tenure, the competition has grown from nine student teams competing for $10,000 into the world’s largest intercollegiate competition for student-led startups. Today, the annual competition welcomes 42 student-led startups that vie for more than $1 million in prizes.

Away from Rice, Burke has played a key role in cultivating entrepreneurship in the energy sector: He helped establish the Energy Tech Venture Forum along with Houston Energy and Climate Startup Week.

Furthermore, Burke co-founded the Texas University Network for Innovation and Entrepreneurship in 2008 to bolster the entrepreneurship programs at every university in Texas. In 2016, the Rice Alliance assumed leadership of the Global Consortium of Entrepreneurship Centers.

In 2023, Burke received the Trailblazer Award at the 2023 Houston Innovation Awards and was recognized by the Deshpande Foundation for his contributions to innovation and entrepreneurship in higher education.

“Working with an amazing team to build the entrepreneurial ecosystem at Rice, in Houston, and beyond has been the privilege of my career,” Burke said in the release. “It has been extremely gratifying to hear entrepreneurs say our efforts changed their lives, while bringing new innovations to market. The organization is well-positioned to help drive exponential growth across startups, investors, and the entrepreneurial ecosystem.”

Starting April 15, John “JR” Reale Jr. will serve as interim associate vice president at Rice and executive director of the Rice Alliance. He is managing director of the alliance and co-founder of Station Houston, beginning April 15. Reale is co-founder of the Station Houston startup hub and a startup investor and was also recently named director for startups and investor engagement for the Ion.

“The Rice Alliance has always been about helping founders gain advantages to realize their visions,” Reale said. “Under Brad’s leadership, the Rice Alliance has become a globally recognized platform that is grounded in trust and drives transformational founder outcomes. My commitment is to honor what Brad has built and led while continuing to serve our team and community, deepen relationships and deliver impact.”

Burke joined the Houston Innovators Podcast back in 2022. Listen to the full interview here.

Houston team uses CPRIT funding to develop nanodrug for cancer immunotherapy

cancer research

With a relative five-year survival rate of 50 percent, pancreatic cancer is a diagnosis nobody wants. At 60 percent, the prognosis for lung cancer isn’t much rosier. That’s because both cancers contain regulatory B cells (Bregs), which block the body’s natural immunity, making it harder to fight the enemies within.

Newly popular immunotherapies in a category known as STING agonists may stimulate natural cancer defenses. However, they can also increase Bregs while simultaneously causing significant side effects. But Wei Gao, assistant professor of pharmacology at the University of Houston College of Pharmacy, may have a solution to that conundrum.

Gao and her team have developed Nano-273, a dual-function drug, packaged in an albumin-based particle, that boosts the immune system to help it better fight pancreatic and lung cancers. Gao’s lab recently received a $900,000 grant from the Cancer Prevention and Research Institute of Texas (CPRIT) to aid in fueling her research into the nanodrug.

“Nano-273 both activates STING and blocks PI3Kγ—a pathway that drives Breg expansion, while albumin nanoparticles help deliver the drug directly to immune cells, reducing unwanted side effects,” Gao said in a press release. “This approach reduces harmful Bregs while boosting immune cells that attack cancer, leading to stronger and more targeted anti-tumor responses.”

In studies using models of both pancreatic and lung cancers, Nano-273 has shown great promise with low toxicity. Its best results thus far have involved using the drug in combination with immunotherapy or chemotherapy.

With the CPRIT funds, Gao and her team will be able to charge closer to clinical use with a series of important steps. Those include continuing to test Nano-273 alongside other drugs, including immune checkpoint inhibitors. Safety studies will follow, but with future patients in mind, Gao will also work toward improving her drug’s production, making sure that it’s safe and high-quality every time, so that it is eventually ready for trials.

Gao added: “If successful, this project could lead to a new type of immunotherapy that offers lasting tumor control and improved survival for patients with pancreatic and lung cancers, two diseases that urgently need better treatments."

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