ReCode Therapeutics on Tuesday closed an extension round to its Series B financing, bringing in an additional $50 million for a total haul this funding round of $260 million.

Last month Vertex kicked off the promised trial of its inhaled mRNA formulation for cystic fibrosis – a courageous move, given that this mechanism has failed in the past. In fact human trials are underway for several inhaled genetic medicine projects that aim to correct or replace the faulty CFTR gene which causes the disease.

Until recently, venture-backed biotech companies had largely managed to shrug off the malaise that has been hurting the industry for some time. Now the inevitable has happened, with both the number of venture rounds and the amount raised taking a dive in the second quarter.

True, the numbers do not look so bad when compared against pre-2020 figures, the latest analysis of data compiled by Evaluate Pharma show. But, with the current downturn showing no sign of bottoming out, the question is how bad it might become for young private groups.

ReCode Therapeutics closed an $80 million Series B round of financing that included Pfizer and Sanofi as investors. The startup’s technology uses lipid nanoparticles to deliver genetic medicines, and its two lead programs are for rare lung disorders.

Partners at MPM and OrbiMed were hoping David Lockhart could help them with due diligence when they brought him and his team at TranscripTx in to look at a tiny upstart spun out of the University of Texas Southwestern Medical Center in Dallas. Dubbed ReCode Therapeutics, it was developing a lipid nanoparticle (LNP) delivery platform for various genetic medicines, with a lead program in cystic fibrosis backed by the CF Foundation.