Montreal-based biotech Morphocell Technologies, which works to regenerate tissues and organs for patients with liver failure, has rounded out its Series A at $50 million USD ($70 million CAD) thanks to new commitments from Investissement Québec and Italy’s CDP Venture Capital.
The funding will help Morphocell expand its manufacturing capacity, lay the foundation for future financing rounds, and open an office in Italy.
The funding, announced Monday, will help Morphocell lead its flagship ReLiver program toward clinical proof-of-concept, according to the company. The stem cell-derived therapy aims to provide an alternative to liver transplants by instead promoting regeneration in patients with liver failure.
Morphocell said the funding will also help expand its manufacturing capacity and team, lay the foundation for future financing rounds, and open its first European office in Italy.
The round extension adds an extra $10 million USD onto the initial $40 million USD in funding Morphocell secured in April 2024, which was led by Montreal-based life sciences investor Genson Capital. Investissement Québec contributed through the provincial agency’s Fonds Impulsion program, a rebrand of the Impulsion PME program that supported Morphocell’s round the first time around.
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“The growing life-sciences industry is providing a global showcase for Québec talent and expertise and paving the way for the emergence of innovative solutions to multiple health challenges,” Investissement Québec president and CEO Bicha Ngo said in a statement.
Morphocell said that, since that initial close, its team has grown to 44 employees across its Montréal headquarters and offices in Toronto and Cambridge, Mass. Morphocell is now heading across the ocean to open its first European office in Italy, following the investment from CDP Venture Capital, which is majority-owned by the Italian Ministry for the Economy and Finance.
This is CDP Venture Capital’s first investment in a Canadian biotech, according to its chief of direct investments, Alessandro Scortecci, and reflects the Italian roots of its founders, CEO Dr. Massimiliano Paganelli and chief scientific officer Dr. Claudia Raggi. The Italian expansion aims to serve as a strategic entry point into Europe, so Morphocell can build partnerships and access talent and research infrastructure.
Feature image courtesy Morphocell.