Encellin Receives $9.9 Million in Financing

Encellin is a biotechnology company pioneering living medicine platforms to address high unmet clinical needs, starting with endocrine disorders. Encellin’s cell encapsulation platform is approved for clinical trials in Type 1 diabetes (T1D), a condition impacting 1.6 million people in the U.S. and a gateway opportunity to address multiple other conditions. Encellin’s team includes leading experts in biomaterials, medical devices, and cell therapies with a track record of successful biotech initial public offerings and commercial programs.

In December, the company announced it had closed a $9.9 million round of financing led by Khosla Ventures, with participation from Y Combinator. Encellin has developed an Encapsulated Cell Replacement Therapy (EnCRT) to isolate therapeutic cells from the body’s immune system, to help therapeutic cells survive in the body. Once implanted, cells within the porous EnCRT are able to exchange the biomolecules with the body, which Encellin seeks to demonstrate will provide a therapeutic benefit and function as a living medicine.

Preclinical data with the company’s first candidate, using ENC-201 in T1D, reported no fibrosis, or immune response, while maintaining cell viability and function. Preclinical data also demonstrated that primary islets encapsulated with Encellin’s EnCRT may be able to reverse T1D. The new funding will advance a Phase 1 clinical trial evaluating subcutaneous transplantation of primary islets within Encellin’s EnCRT in T1D. First-in-human data from the Phase 1 study is expected next year. The financing will also be used for team expansion and further development of the technology platform.

“This new financing led by Khosla Ventures enables us to advance development of our Cell Encapsulation platform, which aims to provide years of therapeutic benefit with a single implant,” according to Crystal Nyitray, Ph.D., CEO and Co-Founder. “The technology can be used in a variety of different indications, beginning with chronic endocrine disorders. Using advanced nanotechnology and bioengineering, we have developed biocompatible materials into permeable, soft pouches designed to support cell function. We look forward to advancing the use of our EnCRT loaded with primary islets to enable responsive insulin delivery for patients with high risk T1D.”

“The cell is essentially a nanorobotics-based machine,” notes Alex Morgan, Partner, Khosla Ventures. “Encellin has developed a technology that safeguards implanted cells and transforms them into programmable molecular factories in the body, releasing therapies when needed. With an initial focus on Type 1 diabetes, Encellin’s technology shows promise to be able to deliver a whole range of living medicines from engineered cells.”

Encellin’s technology is based on more than 10 years of research on nanofabricated membranes with well-defined pore structures. This research was developed in the lab of Dr. Tejal Desai at the University of California in San Francisco. Dr. Desai is also one of Encellin’s strategic advisors. The company became a Hacienda tenant in November 2023.

For more information about Encellin, please visit www.encellin.com or www.linkedin.com/company/encellin.

Photo by Mat Napo on Unsplash

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