Burlingame-based Iolyx Therapeutics is focused on creating locally administered medicines that tackle ocular inflammation at its autoimmune roots, aiming to replace steroids and older immunosuppressants. Its lead candidate, ILYX-002, targets dry eye disease (DED) associated with systemic autoimmune disorders and has shown statistically significant corneal-staining improvement by day 15 in a 105-patient Phase 2 trial. A newly signed partnership will accelerate ILYX-002 into Phase 3, with Théa assuming primary responsibility for late-stage development and commercialization outside Asia. Beyond DED, Iolyx intends to leverage its immuno-ophthalmology platform to move into autoimmune-linked retinal diseases. The company’s business model blends internal R&D with strategic collaborations to obtain non-dilutive capital, exemplified by milestone and royalty payments tied to the Théa deal. Financially, Iolyx now has access to up to $280 million in development and commercial milestones, tiered royalties up to 21% on net sales, and reimbursement of development costs, in addition to $15 million of new Series B equity financing. These resources position the company to advance ILYX-002 through pivotal trials while broadening its pipeline.

Total raised

$15M

Funding rounds

1

Latest round

Series B

Latest activity

Dec 2025