Helsinki-based Valo Therapeutics Oy, a developer of novel immunotherapies in cancer and infectious disease, has secured €19M in funding, part of which was raised in Europe and Australia.
A €13M investment round was co-led by Indaco Venture Partners and CDP Venture Capital SGR, with support from Fondazione ENEA Tech e Biomedical. This follows a €6M investment from Australian investors, backed by Freeman Road, the investment entity of Director Dr. Paul Porter.
Reinventing cancer immunotherapy
Founded by Sari Pesonen and Professor Vincenzo Cerullo, Valo Therapeutics Oy is developing immunotherapy using tumour antigen-coated replication-competent viruses as therapeutic vaccines against cancer.
Its lead platform, PeptiCRAd (Peptide-coated Conditionally Replicating Adenovirus), was developed at the University of Helsinki in the laboratory of Professor Vincenzo Cerullo.
The technology enhances oncolytic adenoviruses to activate systemic anti-tumour cytotoxic T-cell immunity without requiring multiple genetically modified viruses. The company’s lead product, PeptiCRAd-1, consists of its proprietary virus VALO-D102 coated with MAGE-A3 and NY-ESO-1 peptides.
ValoTx is also developing PeptiCHIP, a microchip-based solution for tumour neoantigen identification from small tumour biopsies.
Valo Therapeutics is a spin-out company from the IVTLab at the University of Helsinki.
Capital utilisation
Valo Therapeutics will use the funds to support the expansion and completion of a Phase 1B clinical study for the company’s lead tumour antigen-coated oncolytic virus candidate. The PeptiCRAd platform aims to enhance anti-tumour immune responses in patients with solid tumours.
Clinical trials will take place in Italy, Australia, and Germany. A portion of the investment will be directed to Italy, funding the newly established Valo Therapeutics Italy Srl in Naples.
The company will focus on patient enrollment and treatment in Southern Italy, large-scale virus manufacturing for product development, and research collaborations with institutions in Naples and the surrounding region.
David Hinton, Chair of Valo, says, “We are very excited to secure this investment and be backed by Indaco Venture Partners, via the specialised Biotech fund, and two large Italian Institutional investors, CDP and ENEA Tech e Biomedical.”
“This funding will allow Valo to undertake clinical trials in the South of Italy and Australia. Looking more longer term, this funding will also allow us to scale-up development – an important step towards larger Phase 2 clinical trials.”
Giovanni Rizzo, Partner Indaco BIO Fund at Indaco Venture Partners and board director at Valo, adds, “Valo Therapeutics brings two important elements: a precision medicine and cutting-edge platform technology in the space of immune therapy that can be applied to cancer and other clinical indications and an international excellent team and investors ranging from Italy to Finland, Australia and Germany.”
“This investment will allow Valo to advance the clinical development of PeptiCRad, an immune-therapy platform that, if successful, will reshape the way some undruggable solid tumours are treated.”
What the investors had to say
Francesca Ottier, Senior Partner and Head of Italia Venture II Fund of CDP Venture Capital Sgr, says, “We are thrilled to support Valo Therapeutics in this significant step of its growth journey, marked by the opening of a new research and development center in Naples.”
“This investment represents a great opportunity to strengthen the biotech innovation ecosystem in Italy, harness local talent, and contribute to the development of cutting-edge solutions in cancer immunotherapy. We strongly believe in Valo Therapeutics’ vision and the potential of their PeptiCRAd platform to revolutionize cancer treatment.”
CDP Venture Capital is an asset management company owned by CDP Equity (70 per cent) and Invitalia (30 per cent), focused on fostering innovation and economic development in Italy. It manages 15 investment funds with over €4.7B in resources, supporting companies through direct and indirect investments.
The company’s investment in Valo Therapeutics was managed by Ersilia Rendola, Partner, and Paola Deidda, Associate at Fondo Italia Venture II – Fondo Imprese Sud of CDP Venture Capital Sgr.
Maria Cristina Porta, ENEA Tech e Biomedical General Manager, mentions, “We chose to invest in Valo Therapeutics, recognising the project’s high scientific value in immuno-oncology, an innovative frontier in cancer treatment. This initiative represents not only an opportunity to support international excellence but also a strategic step towards bringing top-tier skills and technologies back to Italy.”
“Through this investment, we are strengthening the value chain of the Italian biomedical sector while creating a significant impact on the National system by supporting research, attracting foreign investments, fostering opportunities in Southern Italy, and simultaneously offering innovative therapeutic solutions to Italian patients. All these objectives align perfectly with the Foundation’s mission.”
Fondazione ENEA Tech e Biomedical is a private foundation supervised by the Ministry of Enterprises and Made in Italy and the Ministry of Health. It promotes investments in scientific research, economic development, and technology transfer to support Italian startups and SMEs in the green and circular economy, information technology, agritech, and deep tech sectors.
The foundation also supports the biomedical sector by linking research to clinical trials and production, establishing specialised hubs to enhance competitiveness and investment. It funds initiatives through the Technology Transfer Fund and the Biomedical Research and Industrial Development Fund.
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