Kevin Neil, Jean-François Millau and Sébastien Rodrigue, co-founders of Tatum Bioscience (Photo: courtesy)
FOCUS ESTRIE. The successful marketing of a drug is a hurdle that only a few start-ups master. But Sherbrooke-based Tatum Bioscience wants to contradict the predictions.
Founded in 2019, the company focuses on an innovative approach to fighting cancer.
“Our medicine is secreted by a bacteria before it is purified,” explains president and co-founder Jean-François Millau. This is fundamentally different from a chemical-based drug. »
The advantage of this technique is simplified production because bacteria are used to produce the desired molecule. In addition, a drug developed in this way could lead to multiple parallel therapeutic activities, which is difficult to achieve using a traditional method.
“We practice 100% immuno-oncology,” states the entrepreneur. We are developing molecules that activate the immune system so that it attacks cancer cells, particularly solid tumors such as melanoma and lung cancer. »
Support in Estrie
The young company was founded together with biology professor Sébastien Rodrigue and researcher Kevin Neil, both from the University of Sherbrooke. The three men actually met in the hallways of this Estrie establishment.
The start-up started its laboratory operations in June 2020. It raised around $700,000 for the first phase of its experiments on mice. Tatum Bioscience received funding from Montreal fund BoxOne Ventures, as well as from Sherbrooke Innopole and ACET Capital, the financial arm of the incubator where the entrepreneurs took their first steps in Sherbrooke.
The young company now hopes to raise $45 million to obtain initial clinical data. “The first lap wasn’t too difficult,” explains Jean-François Millau. There are not the biggest hurdles for starting a company here. However, we are in a kind of valley of death because we need more money to continue our testing, with no guarantee that it will ultimately work. »
“People think money flows freely for startups because we are shown exceptions, like Facebook or Airbnb, but it is not easy to raise money even when the economy is doing well,” he adds.
Overcome the obstacles
The Frenchman, who came to Sherbrooke in 2007 for a postdoctoral fellowship in biology, emphasizes that the first data in mice show that Tatum Bioscience’s approach is promising. “We compared ourselves to molecules on the market,” he says. They work well, but only in a fraction of patients, say a quarter. It is a problem. We therefore want to develop a drug that activates the immune response and significantly increases the rate. »
“But we realize that disruptive technologies like ours make it harder to raise money,” he says.
He notes that in Canada, very few funds are strong enough to take on the risk of funding clinical trials. There are many more in the USA, but they are more difficult to convince due to competition from start-ups in Boston or San Francisco, he says. In addition, the three entrepreneurs are gaining their first experience in drug development.
“It is easier to make investments when you have already achieved success,” he notes. To gain the trust of venture capitalists, we need to show that we know how to surround ourselves well and that we do what we said we would do. »
He draws inspiration from François Ravenelle, CEO and co-founder of Inversago Pharma, the Montreal start-up that was recently sold to Danish multinational Novo Nordisk for over $1 billion.
Jean-François Millau wants the next round of financing to be completed by the holidays.
“We’re constantly being watered down,” he said. There are no other ways to obtain financing. Ultimately, however, we hope to increase the value of the company in order to acquire it or find a partner when we reach the commercialization phase one day. »