Armo Biosciences Inc. is set to emerge from stealth mode this week with a $20 million series A round and a license to a pegylated IL-10 program that was tested by Schering-Plough Corp. for autoimmune conditions. Armo is repurposing the program for cancer based on new evidence that it can stimulate a T cell response against tumor cells.

IL-10 was identified in the late 1980s and initially studied as an immunosuppressive due to its anti-inflammatory properties.