The Montreal biotech is securing another $10 million in funding led by Investissement Québec and CDP Venture Capital.
Montreal-based biotech Morphocell Technologies, which works to regenerate tissue and organs in patients with liver failure, has closed its US$50 million ($70 million CAD) Series A, thanks to new commitments from Investissement Québec and an Italian company. CDP Venture Capital.
The funding will help Morphocell expand its production capacity, lay the groundwork for future funding rounds and open an office in Italy.
The funding, announced Monday, will help Morphocell bring its flagship ReLiver program to clinical proof of concept, according to the company. Stem cell therapy aims to provide an alternative to liver transplantation, instead promoting regeneration in patients with liver failure.
Morphocell said the funding will also help expand its production capacity and team, lay the foundation for future funding rounds and open its first European office in Italy.
The round extension adds an additional $10 million to Morphocell's initial $40 million in funding received in April 2024, led by Montreal-based life sciences investor Genson Capital. Investissement Québec contributed through the provincial agency. Impulse fund program, a rebrand of the Impulsion PME program that first backed the Morphocell round.
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“The growing life sciences industry provides a global showcase for Québec's talent and expertise and paves the way for innovative solutions to numerous healthcare challenges,” Investissement Québec president and CEO Beacha Ngo said in a statement.
Morphocell said that since the first shutdown, its team has grown to 44 employees at its headquarters in Montreal and offices in Toronto and Cambridge, Massachusetts. Morphocell is now heading overseas to open its first European office in Italy, following an investment from CDP Venture Capital, which is majority owned by the Italian Ministry of Economy and Finance.
This is CDP Venture Capital's first investment in a Canadian biotech and reflects the Italian roots of its founders, CEO Dr. Massimiliano Paganelli and Chief Scientific Officer Dr. Claudia Raggi, according to CDP Venture Capital Head of Private Equity Alessandro Scortecci. The Italian expansion is intended to be a strategic entry point into Europe so that Morphocell can build partnerships and access talent and research infrastructure.
Image courtesy of Morphocell.
