How EXO Biologics plans to revolutionize exosome therapy with €16m cash injection

This significant financial boost will propel the development of the company's ground-breaking exosome therapies and expand its manufacturing capabilities.

Hugues Wallemacq, CEO of EXO Biologics, emphasized the importance of this funding in overcoming current industry challenges.

“The economic environment for biotechs worldwide is really difficult at the moment. However, after the rain I’m sure the sun will come back in terms of finance and a lot of money will go in the exosome field in the next two or three years,” he told Bio Pharma Reporter.

“This Series A funding will enable EXO to accelerate the clinical development of our own pipeline but also upgrade our platform to develop exosomes for partners to accelerate their own technical platforms via ExoXpert.”

Clinical development​

The newly acquired funds will support EXO Biologics' clinical trials, including the first European Medicines Agency (EMA) approved clinical trial using mesenchymal stem cell (MSC)-derived exosomes.

The trial is a phase 1/2 study focused on the prevention of bronchopulmonary dysplasia (BPD), a chronic lung disease, in preterm newborns using lead candidate EXOB-001.

“This is the first trial approved by the EMA based on MSC-derived exosomes. We are the only company in the world using umbilical cord-derived MSCs for their strong immunomodulatory potential,” said Wallemacq.

“We start with umbilical cord MSCs because they are a novel, young tissue with high potential. One umbilical cord can produce exosomes sufficient to treat thousands of patients.”

Discussing the potential impact of the trial, Wallemacq believes using exosomes derived from MSCs, particularly from umbilical cord MSCs, could significantly reduce the severity and incidence of BPD in these vulnerable infants.

“Our goal is to reduce the percentage of babies that develop the disease and also reduce its severity. The trial is designed not only to demonstrate safety but also to evaluate the efficacy of our exosomes in preventing this disease.”

Wallemacq also highlighted the innovative approach of the study, noting that it is a phase 1 trial conducted directly in preterm infants, allowing for immediate investigation of the target population.

ExoPulse and ExoXpert​

In addition, a substantial portion of the funds will be directed towards upgrading the ExoPulse platform, EXO Biologics' proprietary production system designed to produce large-scale, consistent, and regulatory-compliant exosomes.

"We will continue to upgrade this platform. This means we will be able to produce large quantities of exosomes derived from MSCs, as well as exosomes loaded with specific payloads like RNA molecules or chemical entities," Wallemacq said.

The company will also enhance reinforce ExoXpert, a newly launched subsidiary specializing in contract development and manufacturing organization (CDMO) services for exosomes. ExoXpert aims to accelerate and derisk the development of exosome therapies for other companies by leveraging the ExoPulse platform.

"We focused all our efforts initially on EXO Biologics, and now with ExoXpert, we are facilitating the use and access to our platform for other companies. Our essential objective is accelerating the development of exosome therapies and after launching ths subsidiary in January we have agreed six agreements with partners.”

Future prospects and market position​

Despite the challenging economic landscape, EXO Biologics' successful funding round demonstrates strong investor confidence in their innovative approach.

Wallemacq highlighted the company's differentiation in the market: "We are the only company with umbilical cord-derived exosomes in clinical trials and we have a unique, scalable, and GMP-compliant production platform."

Looking ahead, the company aims to break even by 2027-2028, leveraging revenue from ExoXpert partnerships and clinical advancements. Driven by robust funding and a pioneering clinical approach, EXO is poised to make significant strides in the exosome therapy field 

"The funding will accelerate our partnerships and revenue growth, ultimately advancing the entire exosome field," Wallemacq concluded.