ExCellThera | Quebec gives 6.5 million to stimulate clinical trials

The Montreal company ExCellThera will receive a new loan of approximately 6.5 million from the Legault government, which wants to see this biotech continue the clinical trials of its treatment against blood diseases.

Isabelle Dube
The Press

Julien Arsenault
The Press

This decision was taken because the company’s project “presents an important economic interest”, according to a recent government decree. The money will be disbursed through the Economic Development Fund. It is Investissement Québec (IQ), the financial arm of the Quebec state, which will complete the transaction.

It was not possible to obtain further details. On Wednesday, ExCellThera did not respond to questions from The Press.

“This is exactly the kind of business we don’t want to lose in Quebec. We want to grow them from start to market, make them flagships, and financing between phases 2 and 3 is crucial to grow the company,” says Anie Perrault, director of BioQuébec, who represents the interests of the Quebec biotechnology and life sciences industry.

To treat blood diseases, Dr. Guy Sauvageau’s team multiplies stem cells taken from cord blood and immune cells with its patented molecule UM171 (UM for University of Montreal).

This cell therapy is currently being evaluated in several clinical trials in the United States and Canada. The latest results published in April indicated that cell expansion with UM171 enabled the use of small cords, which have fewer cells and are often overlooked in public banks.

“This government assistance can create a leverage effect and allow other investors to come and rely on this investment to add funds,” says Ms.^me Perrault.

In 2020, the Legault government granted $6 million in aid to ensure that this company, which is very attractive to foreign investors, remains in Quebec. The Trudeau government had also granted the company $4 million to help set up commercial stem cell bioproduction facilities.

ExCellThera had renewed, last March, its registration in the Register of lobbyists in order to continue to solicit Quebec as part of its projects. It wishes to continue to take steps with IQ, the Ministry of Economy and Innovation and the Ministry of Health and Social Services.

Essentially, ExCellThera wishes to obtain loans and subsidies, the amounts of which have not been specified, in order to “establish a world center for cell therapy in Quebec”. The money would be used for the development of the center in question, the purchase of equipment and the marketing phase of the products.