Morphocell Technologies, a Montreal-based biotechnology company developing tissue therapeutics for organ replacement, has completed its $50 million Series A financing. The round closed following a $10 million extension led by Investissement Québec, the province's economic development corporation, and CDP Venture Capital, part of Italy's Cassa Depositi e Prestiti group.
The extension builds on a $40 million Series A round closed in February 2024, led by Genson Capital. With two major institutional investors now joining the cap table, Morphocell has secured an operational runway extending beyond three years.
Liver disease remains one of the leading causes of death globally, with limited treatment options available for patients with severe organ dysfunction. Current therapies often fall short, leaving transplantation as the only viable path for many patients. Morphocell is working to change that equation through stem cell-derived tissue therapies.
"Since our initial Series A close, Morphocell has delivered remarkable progress across development, manufacturing and team expansion," said Dr. Massimiliano Paganelli, CEO and co-founder of Morphocell Technologies. "The decision by Investissement Québec to deepen its commitment and by CDP Venture Capital to join our syndicate represents a powerful vote of confidence in our vision and execution."
The fresh capital will support three primary objectives. First, Morphocell plans to advance its lead program, ReLiver, toward clinical proof-of-concept. Second, the company will expand manufacturing capacity and continue recruiting specialists in regenerative medicine. Third, the funding enables deeper global collaborations and positions the company for future financing rounds.
A significant portion of the investment will go toward establishing Morphocell's first European subsidiary in Italy. The move reflects the company's Italian-founded roots and opens a strategic entry point into the European market. This expansion will allow Morphocell to tap into local talent, research infrastructure, and potential partnerships across the continent.
Founded in 2018, Morphocell Technologies has grown from a research-stage startup to one of Canada's most well-funded private regenerative medicine companies. The company now employs 44 people across its headquarters in the Greater Montreal Area and offices in Cambridge (Boston) and Toronto.
Morphocell's operations are vertically integrated, spanning discovery, cell manufacturing, and preclinical development. The company's proprietary iPSC-derived platform supports a pipeline of tissue-engineered solutions targeting severe organ dysfunctions, with liver disease as the initial focus.
The expanded investor syndicate reflects growing confidence in Morphocell's approach. Investissement Québec, which previously supported the company through its Impulsion PME program in 2024, has deepened its commitment through the new Fonds Impulsion.
"We are particularly proud to be part of Morphocell's journey, as it is a great example of how Italian world-class talent can innovate and drive impact on a global level," said Alessandro Scortecci, Chief Direct Investments of CDP Venture Capital. "This marks our first investment in a Canadian biotech, a decision driven by our commitment to connect Italy with global innovation ecosystems."
