Dive Brief:A two-year-old biotechnology startup led by former Johnson & Johnson executives has raised $165 million to develop multifunctional antibodies as treatments for cancer and immune diseases.The Series A round for the startup, called Third Arc Bio, drew more investor interest than expected. Vida Ventures led the financing, along with Cormorant Asset Management and Hillhouse Investment. Omega Funds, which seeded Third Arc in 2022, also invested, as did a slate of other venture funds.Third Arc anticipates advancing multiple programs into clinical testing next year. Its drugs are designed to work by engaging T cells, a type of immune cell that can play a role in both cancer and autoimmune disease.Dive Insight:Third Arc has been quietly working for more than two years in an area of research that has drawn significant investment as drugmakers explore how to co-opt the immune system to treat disease.The company didnt disclose many details about its plans Tuesday. But it is focusing on antibodies that can engage T cells, essentially redirecting the bodys immune system. This is useful in cancer, where helping T cells find and destroy tumor cells can be a powerful strategy. It also holds promise in autoimmune conditions, where an out-of-control immune system attacks the body and T cells can be used to deplete the other immune cells responsible.Third Arc is led by Peter Lebowitz, who for years headed up J&Js oncology research and development. He stepped down from his role there in January to join Third Arc as CEO. Sanjaya Singh, a co-inventor of the immune disease drug Skyrizi and former global head of J&Js Janssen Biotherapeutics unit, is the startups chief scientific officer, while another former J&J executive, Joe Erhardt, is chief operating officer.“Less than three years ago, we decided to help realize the scientific vision of Third Arc Bio's founding team by pairing the latest innovation in antibody development with the pursuit of high impact targets in oncology and autoimmunity,“ said Francesco Draetta, managing partner at Omega Funds, in a statement.The company plans to file multiple Investigational New Drug applications with the Food and Drug Administration next year.With the Series A, Third Arc becomes the latest biotech to raise a large funding round to support T cell engager research. Santa Ana Therapeutics, which raised $168 million in June, is taking a similar approach, as is Clasp Therapeutics, which secured $150 million in March. Drugmakers are also actively investigating whether CAR-T cell therapies, already established as treatments for cancer, could be used for autoimmune diseases like lupus, too. '