CN Bio’s organ-on-a-chip technology boosted by $21m Series B raise
CN Bio is set to expand its PhysioMimix OOC (organ on a chip) technology and research services globally following the first close of a Series B investment round which has raised $21million.
The funding includes $10m from new investor Bayland Capital, while keeping existing shareholders on board, such as founding investor CN Innovations Holdings, which contributed $5.5m to the round.
PhysioMimix, which was launched in 2021, recreates three-dimensional human organs and tissues in the laboratory to better understand human physiology, disease, and the effectiveness of new drugs. Using the PhysioMimix system, drugs are discovered more quickly, brought to patients more cost-effectively – while drastically reducing the distress involved in animal experimentation.
CN Bio’s global ambitions address challenges in key markets including toxicology, drug pharmacology and metabolic diseases. With 80 per cent of clinical failures attributed to efficacy and toxicity issues – often derived from the poor predictiveness of animal and 2D cell culture models – the industry demand for OOC solutions is growing.
By expanding R&D in the space, CN Bio will enhance the depth and breadth of tools and applications available to optimise drug discovery and development workflows, enabling researchers to generate data with greater predictability, lower risks of late-stage failures, and accelerate time-to-market for a wide-range of novel therapeutics.
The global OOC market’s compound annual growth rate is estimated at 30.94 per cent. This growth accelerated after the FDA Modernization Act 2.0 was signed into law by Joe Biden in December 2023. The US president green-lit the Act to “allow for alternatives to animal testing for purposes of drug and biological product applications”.
The bill essentially refutes the Federal Food, Drug, and Cosmetics Act of 1938, which mandated animal testing for every new drug development protocol – thereby paving the way for a vast new market to open up for CN Bio in the US.
Yuexing Su, founding partner, Bayland Capital, said: “OOC technology is an exciting market with compelling opportunity for growth.
“CN Bio has taken key steps to build a team with extensive industry expertise and robust networks across the industry, with a longstanding track record of success. We look forward to the continued success for the company as it further capitalises on this unique growth opportunity and delivers on its future expansion plans to remain at the cutting-edge of the field.”
At CN Innovations, managing director Charles Chong notes that “key milestones have been met” even during the difficult pandemic years.
Successes, he says, include “CN Bio providing critical human-relevant compound efficacy data to support the FDA’s approval for Inipharm’s Phase 1 clinical trial for metabolic liver disease”.
Dr Paul Brooks, CEO, CN Bio, said: “We are seeing pivotal growth across our industry, whereby drug developers are increasingly recognising the potential of OOC technology to augment, supplement and optimise their workflows.”
He added: “We have strategically positioned ourselves accordingly to respond to the market needs and are proud to have received recognition from our major shareholder, CN Innovations, and new institutional investors such as Bayland Capital, to drive this vision forward.
“The investment is a testament to our team’s hard work and dedication to best supporting our customers to bring drugs to patients more quickly, more cost-effectively, and through less animal experimentation.”