Morphocell's $50M War Chest Fuels a New Era for Organ Replacement

LAVAL, QC – December 01, 2025 – In a move that signals a major acceleration in the race to solve organ shortages, Montreal-based Morphocell Technologies has officially closed a US$50 million Series A financing round. The funding, capped by a recent US$10 million injection from Investissement Québec and Italy's CDP Venture Capital, positions the company as a formidable player in the regenerative medicine landscape and extends its operational runway to over three years. This financial milestone is not just about capital; it's a powerful validation of Morphocell's pioneering approach to creating lab-grown liver tissues designed to treat severe liver disease without the need for a traditional transplant.

Founded in 2018, Morphocell is at the vanguard of a medical revolution, leveraging a proprietary platform to develop tissue therapeutics from induced pluripotent stem cells (iPSCs). The completion of this funding round, initially led by Genson Capital, provides the critical resources needed to push its lead program toward the clinic and build a global infrastructure for the future of organ replacement.

A New Frontier in Liver Therapy

At the heart of Morphocell's promise is its lead program, ReLiver®, an innovative therapy aimed at patients with acute liver failure (ALF) and acute-on-chronic liver failure (ACLF)—conditions with grim prognoses and limited treatment options. Unlike a full organ transplant, which is fraught with challenges including donor shortages, surgical risks, and the necessity for lifelong immunosuppressant drugs, ReLiver® offers a fundamentally different approach.

The therapy consists of encapsulated liver tissue, derived from iPSCs, that can be administered to patients to perform essential liver functions. This provides a vital bridge to recovery by not only replacing lost function but also, according to promising preclinical data, stimulating the regeneration of the patient's own damaged liver. The most significant innovation lies in its "off-the-shelf" potential. Because the therapeutic cells are derived from a master iPSC bank and shielded within a proprietary capsule, the therapy is designed to be allogeneic—usable in any patient—and to avoid triggering an immune response, thereby eliminating the need for debilitating immunosuppression.

With this new funding, Morphocell is poised to advance ReLiver® from the laboratory to the bedside. The company has indicated that its first-in-human Phase I/IIa clinical trial for acute liver failure is set to begin shortly. Achieving clinical proof-of-concept will be a watershed moment, not just for the company, but for the entire field of regenerative medicine, which is projected to grow into a market exceeding US$100 billion by the early 2030s.

The Strategic Power of Global Investment

The composition of Morphocell's investor syndicate speaks volumes about the technology's perceived potential and the strategic vision behind its growth. The involvement of Investissement Québec and CDP Venture Capital is more than a financial transaction; it represents a cross-border partnership aimed at cultivating regional innovation hubs and building a transatlantic biotech leader.

Investissement Québec, the province's economic development arm, has deepened its commitment after initial support in 2024. This move aligns with its mandate to bolster Québec's burgeoning life-sciences industry and showcase local expertise on a global stage. "The growing life-sciences industry is providing a global showcase for Québec talent and expertise and paving the way for the emergence of innovative solutions to multiple health challenges," stated Bicha Ngo, President and CEO of Investissement Québec. "Investissement Québec is delighted to help Morphocell achieve its ambitions."

The government's support underscores a broader strategy to make the province a hotbed for medical innovation. Christine Fréchette, Minister of Economy, Innovation, and Energy, added, "This commitment is part of our desire to build a solid, dynamic, and forward-looking ecosystem where our companies can develop promising solutions for the health of tomorrow."

Simultaneously, the investment from CDP Venture Capital marks its first foray into a Canadian biotech company and serves a dual purpose. It provides Morphocell with a strategic gateway into Europe while reinforcing Italy's own biotech ambitions. "This marks our first investment in a Canadian biotech, a decision driven by our commitment to connect Italy with global innovation ecosystems," said Alessandro Scortecci, Chief Direct Investments of CDP Venture Capital. As part of the deal, Morphocell will establish its first European subsidiary in Italy, tapping into the country's research capabilities and skilled talent pool.

Navigating a Competitive and Growing Market

Morphocell enters this next phase of growth in a dynamic but highly competitive market. The quest for effective liver disease therapies has attracted numerous players exploring everything from direct hepatocyte transplantation and gene therapies to complex bioartificial liver devices. However, many of these approaches remain hampered by significant hurdles, such as sourcing viable cells, limited efficacy, and the persistent need for immunosuppression.

Morphocell's platform technology appears well-positioned to circumvent many of these challenges. The use of iPSCs provides a theoretically unlimited and consistent cell source, overcoming the primary bottleneck of therapies reliant on donor organs or primary cells. Furthermore, its focus on creating an encapsulated, immune-privileged tissue product could be a game-changer, potentially offering the benefits of cell therapy without the dangerous side effects of a suppressed immune system. This positions ReLiver® as a disruptive force, not just as an alternative to transplantation but as a new treatment paradigm altogether.

"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."

Building a Transatlantic Biotech Powerhouse

With US$50 million secured, Morphocell is rapidly scaling its operations. The company has already grown to 44 employees across its headquarters in the Greater Montréal Area and offices in Cambridge, Massachusetts, and Toronto. This expansion supports a vertically integrated model that spans from discovery research to preclinical development and in-house cell manufacturing—a critical capability for controlling quality and scaling production.

The establishment of an Italian subsidiary is a strategic masterstroke, leveraging the company's Italian-founded roots and the new partnership with CDP Venture Capital. This European foothold will enable Morphocell to build regional partnerships, access world-class research infrastructure, and navigate the European regulatory landscape more effectively as it prepares for global commercialization. It's a clear signal that the company's ambitions are not confined to North America.

This infusion of capital is about more than just funding the next clinical trial; it's about building an enduring institution capable of delivering on a profound mission. As Dr. Paganelli affirmed, "Morphocell's goal has always been clear, to create revolutionary cell-based organ replacement therapies that cure patients. This additional funding reinforces our shared conviction, with our investors, our partners, and our team, that we are building the future of regenerative medicine right here in Québec." With a fortified balance sheet, a powerful international syndicate, and a clear path to the clinic, Morphocell is no longer just a promising startup but a well-funded contender poised to redefine the treatment of liver failure.