Valo Therapeutics Oy has successfully secured €19 million in financing to advance clinical development of its innovative cancer immunotherapy platform. The funding, split between €13 million from European investors and €6 million from Australian backers, will support expanded Phase 1B clinical trials of the company's lead candidate across three countries.
The European investment round was co-led by Indaco Venture Partners and CDP Venture Capital SGR, with support from Fondazione ENEA Tech e Biomedical. The Australian portion was backed by major shareholder Freeman Road, the investment entity of current Director Dr. Paul Porter.
The Finnish immunotherapy company is developing PeptiCRAd, a novel platform designed to enhance anti-tumor immune responses in patients with solid tumors. The technology coats oncolytic adenoviruses with tumor antigens, creating therapeutic vaccines that activate systemic anti-tumor cytotoxic T-cell immunity without requiring multiple genetically modified viruses.
Expansion into Southern Italy
A significant portion of the funding will establish Valo Therapeutics Italy Srl, a new operating company based in Naples. This strategic move will focus on three key activities in Southern Italy: enrolling and treating local patients, initiating large-scale virus manufacturing to support product development through commercial phases, and supporting research activities at institutions throughout the region.
David Hinton, Chair of Valo, highlighted the significance of the investment: "This funding will allow Valo to undertake clinical trials in the South of Italy and Australia. Looking more longer term, this funding will also allow us to scale-up development - an important step towards larger Phase 2 clinical trials."
Innovative Immunotherapy Approach
PeptiCRAd-1, the company's lead product, combines Valo's proprietary VALO-D102 virus coated with MAGE-A3 and NY-ESO-1 peptides. The platform was developed in the laboratory of Professor Vincenzo Cerullo at the University of Helsinki, who is also one of the company's founders and originally from Naples, Italy.
Giovanni Rizzo, Partner at Indaco BIO Fund and board director at Valo, emphasized the platform's potential: "This investment will allow Valo to advance the clinical development of PeptiCRAd, an immune-therapy platform that, if successful, will reshape the way some undruggable solid tumors are treated."
The company is also developing PeptiCHIP, an innovative microchip-based solution for rapid, accurate, and standardized tumor neoantigen identification from very small tumor biopsies.
Strengthening Italy's Biomedical Sector
Francesca Ottier, Senior Partner and Head of Italia Venture II Fund of CDP Venture Capital Sgr, noted the broader impact of the investment: "This investment represents a great opportunity to strengthen the biotech innovation ecosystem in Italy, harness local talent, and contribute to the development of cutting-edge solutions in cancer immunotherapy."
Maria Cristina Porta, ENEA Tech e Biomedical General Manager, added that the investment would strengthen "the value chain of the Italian biomedical sector while creating a significant impact on the National system by supporting research, attracting foreign investments, fostering opportunities in Southern Italy, and simultaneously offering innovative therapeutic solutions to Italian patients."
Clinical Trial Expansion
The Phase 1B clinical trials for PeptiCRAd will now be conducted across three countries: Italy, Australia, and Germany. This international approach will provide broader data on the platform's efficacy and safety while accelerating the development timeline.
The funding represents a critical milestone for Valo Therapeutics as it works to advance its innovative approach to cancer immunotherapy, potentially offering new treatment options for patients with solid tumors that have proven difficult to treat with existing therapies.
