Tozaro, a Bedfordshire-based company whose ‘Smart Polymer’ technology could significantly reduce the cost of life-saving cell and gene therapies, has completed a £6m ($8.2m) funding round.
The round was led by Mercia Ventures, investing from the Midlands Engine Investment Fund II and from its own funds, alongside other existing investors. It will enable the company to form new commercial partnerships and pursue its mission to open up access to breakthrough gene therapies.
There are over 70 cell and gene therapy products currently on the market, with over 3,400 in development.* The new treatments offer fresh hope to patients with some types of cancer or genetic diseases who previously had limited options, but it is feared that the high cost will limit the number that can be treated.
In cancer care, new CAR-T (chimeric antigen receptor T-cell) therapies have proven highly effective in treating leukaemia, lymphoma and multiple myeloma, but can cost over £370,000 per patient. Other gene therapies enable rare genetic diseases to be treated for the first time, including some forms of childhood blindness and neurodegenerative conditions such as Huntington’s disease, but can cost over £1 million per patient.
Gene therapies use cells which are genetically altered using a viral vector, a safe way to deliver modified genes into cells. Tozaro’s Smart Polymer platform offers a more cost-effective way to manufacture viral vectors.
Its technology, which uses molecular modelling and machine learning, has already been tested by a number of manufacturing companies. It is currently being developed for use in the manufacture of lentiviral vectors for the CAR-T treatment, and for AAV (adeno-associated virus) vectors used in other gene therapies. Tozaro is also in talks with other leading global manufacturers.
Jason Slingsby, CEO of Tozaro, said: “Tozaro is leading the way in using high-value polymers to transform production of some of the world’s most innovative but costly medicines, and our technology is attracting global interest. By improving manufacturing yields and quality while reducing costs, we can remove the barriers and enable more patients to access these life-changing cell therapies.”
Mercia first invested in Bedfordshire-based Tozaro, previously known as MIP Discovery, in 2015. The latest round brings the total raised by the company to date to £23.7m ($32.2m).
The market for cell and gene therapy products is valued at over $10bn today and forecast to grow to over $100bn by 2034.**
Mark Payton, CEO of Mercia Asset Management, said: “The growth of this exciting new generation of biological therapeutics is being held back by the extreme cost of production. Tozaro is developing an approach that will significantly reduce this cost, without shouldering the risk of clinical development of the therapeutic itself. It’s a real privilege to witness the significant commercial progress made over the past year, moving from platform development into meaningful engagement with downstream processing partners and potential customers.”
David Tindall, Senior Investment Manager at the British Business Bank, said: “The Midlands Engine Investment Fund II was established to support the kind of innovation that helps businesses stand out, become market leaders and deliver better solutions to those who need them most. It is inspiring to see Tozaro based in Bedfordshire breaking barriers in the sector and we’re proud to play a role in their growth journey.”
The purpose of the Midlands Engine Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for smaller businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.