Good day. Lila Sciences’ $235 million Series A financing illustrates many investors’ conviction that artificial intelligence will supercharge scientific research.

Lila, founded by Flagship Pioneering in 2023, has raised a total of about $435 million by convincing investors that AI can enhance science performed by humans.

Lila scientists dream up concepts and set the direction for research projects. From there, with human guidance, AI takes on the research task.

Scientists might wish for a protein drug with specific attributes. Lila’s AI generates the hypotheses to discover such a molecule, then, with the help of robotics—also controlled by AI—these hypotheses are tested. The results are used to update the models and, ultimately, improve the protein.

“It dramatically expands and accelerates what’s possible in science,” said Geoffrey von Maltzahn, co-founder and chief executive of Lila and a Flagship general partner.

The proof, of course, will come when Lila enables the creation of a novel drug or a breakthrough product in sectors such as energy or agriculture. Investors, however, expect that process to go more quickly than it ordinarily would.

Alex Karnal, co-founder and chief investment officer of Braidwell, which led this new financing with Collective Global, said he expects research programs will have a higher probability of success and products will reach the market faster.

The approach von Maltzahn articulates, he added, “is essentially a reinvention of the way science is done.”

And now on to the news...

New healthcare fund. Bob Langer, co-founder of Moderna and many other biotechnology companies, has teamed with son Michael and other healthcare-industry veterans at T.Rx Capital, a new venture firm that has raised $77.5 million to invest in life sciences and healthcare-technology startups. 

• Boston-based T.Rx secured an anchor investor, a large wealth-management firm, in mid-2023 and held a final closing on the fund in July, short of its $125 million target.
   
• Uncertainty about macro factors, such as the ability to take startups public, has hamstrung fundraising by healthcare venture investors. Given these headwinds, the T.Rx team concluded that beginning to invest in promising companies at low valuations was a better strategy than continuing to pursue their fundraising goal.
   
• “In this particular environment, we wanted to put capital to work rather than wait,” said Dr. Corey McCann, a co-founder and managing partner of the firm.

The pharmaceutical industry’s pledges to build more U.S. manufacturing capacity are piling up. GSK and Eli Lilly on Tuesday were the latest multinational drugmakers to unveil plans to build new U.S. manufacturing plants and other operations, moves aimed partly at mitigating the threat of tariffs on imported medicines by the Trump administration. So far this year, more than a dozen drugmakers have pledged to spend more than $350 billion collectively by the end of this decade on manufacturing, research and development and other functions in the U.S., a Wall Street Journal tally of company announcements showed. “The vast majority of our products going into the U.S. are manufactured in the U.S.,” GSK Chief Executive Emma Walmsley said in an interview Tuesday.

People

Saisei Ventures, an investor focused on advancing Japanese biotechnology and therapeutic innovations, appointed James Feliciano as venture partner. He most recently founded 3C Advisors.

Yasir Al-Wakeel was appointed chief executive officer of drug developer Vesalius Therapeutics and CEO-Partner of Flagship Pioneering. Additionally, Mary Beth Harler was named president of Pioneering Medicines, Flagship’s in-house drug discovery and development unit.

Lumata Health, a provider of continuous ophthalmic care for people with chronic eye disease, appointed Annu Singh as chief technology officer and Nastran Andersen as chief growth officer.

Ollin Biosciences, an Austin, Texas-based biopharmaceutical startup dedicated to acquiring and developing therapies for vision-threatening diseases, launched with $100 million in funding led by ARCH Venture Partners, Mubadala Capital and Monograph Capital.

Imagine Pediatrics, a Nashville, Tenn.-based startup delivering virtual and in-home care for children with special needs, scored $67 million in Series B funding from investors including Oak HC/FT, Optum Ventures, Rubicon Founders and Autism Impact Fund.

Dualitas Therapeutics, a South San Francisco, Calif.-based startup developing novel bispecific antibody therapies for immunology and inflammation, launched from stealth with $65 million in Series A funding. Versant Ventures and Qiming Venture Partners USA co-led the round, which included participation from SV Health Investors, Alexandria Venture Investments and others.

AllRock Bio, a Natick, Mass.-based startup developing therapies for cardiopulmonary and fibrotic diseases, landed $50 million in Series A funding co-led by Versant Ventures and Westlake BioPartners.

Conceivable Life Sciences, a New York-headquartered developer of an AI-powered automated in vitro fertilization laboratory, secured $50 million in Series A financing led by Advance Venture Partners.

Modern Animal, a Los Angeles-based veterinary startup, picked up a $46 million investment led by Addition, True Ventures and Upfront Ventures. Addition’s Robbie Horwitz, True Ventures’ Tony Conrad and Upfront Ventures’ Mark Suster will join the Modern Animal board.

Birches Health, a New York-based gambling addiction treatment provider, collected $20 million in seed and Series A funding from investors including AlleyCorp and General Catalyst.

Doctronic, a New York-headquartered provider of an AI-powered health assistant, grabbed a $20 million Series A round. Lightspeed Venture Partners led funding, which included additional support from Union Square Ventures and others.

Inbox Health, a New Haven, Conn.-based patient billing and support technology provider, closed on $20 million in growth equity and debt funding. Ten Coves Capital led the investment, which included contributions from Commerce Ventures and Vertical Venture Partners.

Character Biosciences, a Jersey City, N.J.-based developer of therapies for eye diseases, added more than $17 million in Series B funding from investors including Sanofi Ventures, bringing the round total to $110 million. The company also named Robert Kim as chief medical officer, Daniel Elgort as chief data and analytics officer, Josh Buddle as head of clinical network and longitudinal research, and Jessamyn Wead as head of people.

Synthesize Bio, a startup using AI for generative genomics, was seeded with a $10 million investment led by Madrona.

• Ditching Ultraprocessed Foods Can Be Hard. Here’s Where to Start.
   
• Eli Lilly to Invest $5 Billion in New Virginia Drug Manufacturing Plant
   
• Novo Nordisk’s Wegovy Helps Suppress Thoughts About Food, Study Suggests
   
• Novo Nordisk’s Diabetes Pill Gets EU Label Extension For Heart Benefits
   
• AstraZeneca Pauses Plans for $271 Million Expansion of U.K. Site

• For lab tech trainees, the biotech industry’s promise outshines its current struggles (Boston Globe) 
   
• Speed wins: the focused-team formula for platform biotechs (Life Sci VC)
   
• Pig organ transplants may pose a dilemma for some Jews and Muslims (New York Times)
   
• Projected surge in uninsured will strain local health systems (KFF Health News)

This newsletter was compiled by Matthew Strozier, Zachary Cole and Brian Gormley. 

WSJ Pro Venture Capital is a premium service of The Wall Street Journal. We cover venture capital and the global startup ecosystem. Share your tips, comments and questions: vcnews@wsj.com

The Team: Matthew Strozier, Yuliya Chernova, Brian Gormley and Marc Vartabedian.

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