Funding Boost: Mondego Bio Secures €20m in Series A Investment Round
In a significant move for the Portuguese biotech sector, a local start-up has secured funding from Capital One to develop an innovative oral cancer compound named ZE00-0388. This development marks the first use of funds from the Capital One Biovance Fund I, managed by Capital One Biovance Capital.
The Capital One Biovance Fund I, financed by the European Investment Fund (EIF) and Portugal's state bank Banco Português de Fomento (BPF), aims to support innovative cancer companies in Portugal. With this investment from Capital One, the start-up aims to improve access to capital for such companies.
ZE00-0388 is a selective blocker of Protein Tyrosine Phosphatase, Non-Receptor Type 2 (PTPN2), a ubiquitous protein tyrosine phosphatase that regulates the JAK-STAT pathway. The compound was built by AI-guided rational design of PTPN2/1 blockers.
Preclinical trials of ZE00-0388 have demonstrated an acceptable safety profile and bioavailability, with improved bioavailability compared to earlier designs. In these trials, ZE00-0388 showed an 80.6% inhibition of colon carcinoma growth in a mouse model.
Moreover, the effect of ZE00-0388 is an increase in interferon-gamma, a cytokine known for its role in immune responses. When combined with PD1 blockers, the inhibition rate of colon carcinoma by ZE00-0388 increased to 91%.
The founder of Capital One Biovance Capital, Pedro Mota Teixeira, has invested in the Portuguese start-up developing ZE00-0388. Mondego Bio, the start-up in question, is the first investment of Capital One Biovance Capital.
The development of ZE00-0388 is part of a broader strategy to support innovative Portuguese cancer companies. As an oral compound, ZE00-0388 has the potential to offer a more patient-friendly treatment option for those battling oral cancer.
This investment in Mondego Bio is a promising step forward in the fight against cancer, demonstrating the potential of AI-guided drug development and the support of innovative biotech companies in Portugal by Capital One.
