Mondego Bio, a Portuguese biotech startup headquartered in Portugal's main biotech park Biocant, has secured Series A funding to advance its development of protein tyrosine phosphatase non-receptor type 2 (PTPN2) inhibitors for cancer immunotherapy. The funding round was led by Biovance Capital Partners, alongside co-investors OrbiMed and Torrey Pines Investment.
Novel Mechanism Targets JAK-STAT Pathway
Mondego Bio is developing best-in-class PTPN2 inhibitors that offer a potential immuno-oncological therapy with an improved safety and tolerability profile. PTPN2 functions as a critical negative regulator of the JAK-STAT pathway, directly regulating signaling through cytokine receptors, including the interferon-gamma (IFNγ) receptor.
The therapeutic strategy centers on enhancing IFNγ sensing and signaling through PTPN2 inhibition, which could potentially improve the efficacy of cancer immunotherapy regimens. This approach represents a novel mechanism for boosting immune system responses against cancer cells.
Strategic Investment Partnership
The funding represents the inaugural investment by Biovance Capital Fund I, which manages €57 million from multiple sources including the European Investment Fund, Portuguese pharmaceutical company BIAL, Banco Português de Fomento, and the European Commission through Portugal Tech and Invest EU programs.
"This marks the first investment by Biovance Capital Fund I, which looks to provide crucial capital to develop transformational therapies for unmet medical needs, and attract world-class scientists and investors to Portugal," said Ricardo Perdigão Henriques, PhD, Managing Partner of Biovance Capital.
João Incio, MD PhD, General Partner of Biovance Capital, emphasized the collaborative nature of the investment: "We are excited to join forces with top-tier US healthcare investors to help accelerate safer, more effective treatments—and, ultimately, better outcomes for patients battling cancer."
International Collaboration
The investment marks significant milestones for the participating firms. For Torrey Pines Investment, this represents their first investment in Southern Europe. "With very compelling science, we are excited to back Mondego Bio's work on PTPN2 inhibitors in immuno-oncology, marking our first investment in Southern Europe and a successful collaboration with OrbiMed and Biovance Capital," said Nikolay Savchuk, PhD, Managing Partner of Torrey Pines Investment.
OrbiMed, which manages over $17 billion in assets, views the partnership as strategically valuable. "It is great to have Biovance Capital as a local partner in Portugal supporting the development of this company," added Iain Dukes, PhD, Venture Partner at OrbiMed.
Scientific Foundation
The lead programs are based on research initially developed by Eilean Therapeutics, an AI/ML supported oncology platform co-founded by OrbiMed and Torrey Pines. This foundation provides Mondego Bio with a robust scientific platform to advance their PTPN2 inhibitor programs.
André Albergaria, PhD, Principal of Biovance Capital, highlighted the innovation potential: "We see this investment as an excellent opportunity to advance a groundbreaking innovation with the potential to reshape current immunotherapy in oncology."
European Biotech Expansion
The investment reflects growing interest in European biotech innovation, particularly in Southern Europe. Biovance Capital Fund I focuses on early-stage drug development companies across Europe, with special emphasis on Southern European markets. The fund's diverse investor base includes both institutional and private investors from Portugal and international markets.
