The Pain Of Untreatable Diseases: Our Investment In Pepper Bio

Published November 30th, 2023

Most families, like mine, have felt the crushing pain of finding out a loved one has an aggressive form of cancer. Or a neurodegenerative disease like Alzheimer’s, the most common form of dementia. This pain is compounded when you find out that, even with all the advancements in modern medicine, we can only attempt to excise or manage, but not fully treat these diseases.

What’s even more tragic is knowing that because of the progression of the disease, no treatment will exist in that loved one’s lifetime. It typically takes over 10 years and more than 10 billion dollars for pharma to bring a drug to market, with a dishearteningly low 3% probability of success.

Knowing all of this made meeting the Pepper Bio founders all the more special. Co-founded by Chief Executive Officer Jon Hu and Chief Science Officer Samantha Dale Strasser, Ph.D., Pepper Bio is bringing a new AI-enabled approach to drug discovery that de-risks drug investment in untreatable diseases.

The co-founders both lost loved ones to untreatable diseases. During her undergrad studies, Samantha learned that her father had an untreatable neurodegenerative disease. Because of this, she shifted her graduate studies to better align with researching the underlying cause of disease. Jon felt a similar pain when he lost his grandmother to Alzheimer’s.

The passion and dedication both founders have in altering the depressing status quo in drug development feels like a ray of hope in the darkness. It’s one of the reasons we’re so proud to partner with and invest in Pepper Bio.

How Pepper Bio Works And Why We Invested

Pepper Bio is the world's first transomics drug discovery company. Similar to how Google Maps combines various layers of data to provide the fastest and safest route to an end destination, Pepper Bio’s COMPASS platform simplifies the intricate world of biology into a navigable roadmap for researchers.

Most models include genomics (DNA), transcriptomics (RNA), and proteomics, AKA whether there is a presence of proteins. The missing layer that Pepper has is phosphoproteomics AKA the function of proteins. Pepper is able to study how proteins interact with drug targets in a biological system, which helps the company make more accurate predictions about which drug targets will succeed or fail before the costly clinical trial stage.

This roadmap to successful clinical trials enables investments in finding treatments across neurodegenerative, oncology, and inflammatory diseases, bringing hope to those waiting on life-changing new drugs.

Already, Pepper has proved COMPASS’s ability to identify new lung cancer drug targets that patients are less likely to develop a resistance to. This breakthrough has the potential to progress more effective treatments and improve patient outcomes.

We started working with Jon and Samantha in 2021. Since then, they’ve fostered a steady cadence of wins – partnering with Prof. Dean Felsher at Stanford, bringing on new talent in Chief Development Officer Dr. Simon Fricker, striking partnerships with top global pharma companies, and presenting research indicative of the true potential of their platform at prominent conferences. These progressive achievements are characteristic of the intelligent, patient, and level-headed leadership required by founders disrupting a risk-averse space.

Leading this $6.5M oversubscribed seed round is NFX, with participation from Silverton Partners, Merck Digital Sciences Studio, Mana Ventures, Tensility Ventures, and VSC Ventures.

At VSC Ventures, we are committed to identifying startups with the potential to change the world, and we firmly believe that Pepper Bio is leading the charge to revolutionize drug discovery and reshape the future of medicine.

Thank you so much for reading our latest update from VSC Ventures Fund I. We're in the early days of our long and healthy partnership with all of you, so please reach out to us with additional questions on anything above. Thank you again for your support for our vision and our fund!

Best,
Vijay Chattha & Jay Kapoor

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