Novel Biotechnology Secures $2.5m in Seed Round Funding
[TORONTO, September 28] – Novel Biotechnology Inc., an innovative biotechnology start-up headquartered in Canada, is pleased to announce the successful completion of its $2.5 million seed round funding. This significant milestone was achieved with the support of angel investors, along with the Ontario Center of Innovation (OCI), which provided $500,000.
Novel Biotechnology is dedicated to pioneering a groundbreaking platform technology for the production of plasmid DNA, a critical reagent in the modern biopharmaceutical industry. Their platform promises to deliver enhanced productivity, speed, and quality, setting a new standard in the field.
Co-founded by CEO Pankaj Khanna and a team of accomplished serial entrepreneurs, Novel Biotechnology is on a mission to revolutionize the plasmid DNA market. In recent years, the industry has grappled with capacity constraints, hindering progress in vaccine and gene therapy research and development.
“A dramatic increase in the amount of R&D taking place in the vaccine and gene therapy sectors has created a shortage in global pDNA manufacturing capacity. Additionally, the pDNA products that researchers need continue to get larger and more complex, pushing the limits of existing manufacturing technologies,” said Matthew Weinstock, CTO of Novel Biotechnology. “Our NBx platform is an engineered microbial strain that is significantly more productive, can handle complex constructs, offers improved product quality profiles, and can be slotted into existing manufacturing infrastructure without requiring any modifications.”
One of the key advantages of Novel’s NBx technology is its high productivity, which enables a smaller footprint, making it mobile and easy to deploy.
“The recent pandemic experience has taught us that the world needs compact and mobile manufacturing systems that can be readily deployed across the globe to improve access to life-saving medicines,” said CEO Pankaj Khanna.
Since its inception, Novel has achieved significant milestones, including the development of its proprietary strain, proof of concept with multiple plasmid constructs, and the generation of meaningful revenue through its services business. The proceeds from the seed round will be utilized to expand Novel’s existing plasmid services business and expedite its platform R&D initiatives.
“Through the Ontario Centre of Innovation, our government is proud to support innovative start-ups like Novel Biotechnology,” said Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade. “Their breakthroughs in vaccine and gene therapy research will build on Ontario’s long history of innovation in the life sciences sector. Congratulations, Novel Biotechnology.”
“Due to the strong growth within the pDNA market, Novel expects robust revenue growth and profitability by FY2025,” said Konstantin Rodionov, CFO & Co-Founder of Novel Biotechnology.
Over the past several months, Novel has been diligently conducting tests on complex plasmid constructs and scaling up its proprietary platform in collaboration with external partners. The company is excited to announce the commercial launch of NBx for plasmid manufacturing in Q4, 2023.
In the interim, Novel will continue to leverage established platforms to produce R&D and pre-clinical plasmid material for its existing industrial and academic clients.
“Considering the lessons learned from the recent pandemic, compact and mobile manufacturing systems are essential for ensuring broader access to life-saving medicines. Novel Biotechnology is well-positioned to lead the charge in addressing critical capacity constraints in the plasmid DNA market and contributing to advancements in the biopharmaceutical industry,” said President and CEO of the Ontario Centre of Innovation, Claudia Krywiak.