Northern Biologics, a Canada-based oncology and fibrosis-focused biotechnology company backed by pharmaceutical firm Celgene, merged with Spain-based personalised cancer therapy developer Mosaic Biomedicals on Monday.
Terms of the deal have not been disclosed. Venture capital firm Versant Ventures has concurrently extended its series A commitment to Northern Biologics by an undisclosed amount while Celgene exercised an option to acquire certain rights to the MSC-1 drug candidate.
The merger will support the development of MSC-1, an antibody Mosaic has created to target a small protein known as leukaemia inhibitory factor which is responsible for solid tumour growth. The newly formed company will launch clinical trials next year in Europe and North America.
Northern Biologics was established by Versant-backed biotechnology incubator Blueline Bioscience in 2014 and aims to develop antibody therapies for cancer and fibrosis.
The company’s technology is based on research conducted by Sachdev Sidhu at Toronto University, with follow-on research conducted by researchers at University Health Network’s Princess Margaret Cancer Centre.
Versant provided $10m in initial series A capital for Northern Biologics in 2014, which was followed by a $30m investment by Celgene as part of a strategic collaboration agreement in May 2015.
Mosaic Biomedicals, which was founded in 2013, is developing personalised cancer treatments. The company is commercialising research conducted at Vall d’Hebron Institute of Oncology, Institució Catalana de Recerca i Estudis Avançats and Vall d’Hebron Institute of Research.
Mosaic received $2m in seed funding in 2013, according to deals database Pitchbook. Its backers include Versant and La Caixa Risc, the investment arm of financial services firm La Caixa, as well as Empresa Nacional de Innovación, the investment unit of Spain’s Ministry of Industry, Energy and Tourism.
Spain’s Ministry of Economy and Competitiveness also provided funding through European Union-backed instrument Retos de Colaboración.
Joan Seoane, co-founder of Mosaic, has joined Northern Biologics’ board of directors, while fellow co-founder José Baselga will serve as chair and senior medical adviser to the scientific advisory board. Versant partner Guido Magni has joined its scientific advisory board as lead clinical adviser.