MPower Partners Fund, Japan’s first ESG-focused global venture capital fund, has invested in Cyto-Facto Inc. (Kobe, Japan), a CMO/CDMO for cell and gene therapy treatments.

Historically, the majority of medical treatments have been targeted at symptoms, in the form of drug administration and surgery. Regenerative therapies, however, have recently been garnering much attention as a method of curing diseases from their root cause. CART-T cell therapy, in which stem cells are harvested from the patient, cultured in a laboratory, and then returned to the patient’s body, is already employed to treat blood-related diseases including leukemia, lymphoma, and other cancers. Gene therapy, the gene-equivalent of cell therapy, is also underway for applications in immunodeficiency treatment and certain cancers. 

Cyto Facto functions as a CMO (Contract Manufacturing Organization) and CDMO (Contract Development and Manufacturing Organization) for gene and cell therapy solutions. With a mission to “improve lives in Japan and beyond by swift and reliable delivery of novel CGT (cell & gene therapy) products,” they work closely with pharmaceutical and biotech companies to develop and manufacture cutting-edge treatments. 

Cyto Facto was spun out of the Foundation for Biomedical Research and Innovation at Kobe (FBRI) in April 2023. FBRI was established as part of the Kobe Biomedical Innovation Cluster, born out of reconstruction efforts after the 1995 Great Hanshin-Awaji Earthquake. In 2015, the Research & Development Center for Cell Therapy (RDC) was established as the fourth center in FBRI to promote a wide range of developmental support for cell therapy, from basic research to pharmaceutical commercialization. Led by Shin Kawamata, MD, PhD, who pioneered the CGT space in Japan with over 2 decades of research, RDC was the first institution in Asia to develop and manufacture Novartis’ Kymriah Intravenous Infusion, a CART-T solution.  Upon completion of clinical trials and regulatory filing, RDC in 2000 began its commercial production of Kymriah, delivering 200+ patients battling relapsed or refractory acute lymphoblastic leukemia (ALL), a specialized therapeutic agent based on patients’ own cells. 

MPower is excited to support Cyto Facto in its further endeavors and co-lead this Series A equity round with existing investor D3 LLC. We were impressed not only by Cyto Facto’s track record with Novartis, but also with the team’s determination to further enhance CGT manufacturing processes through their “CytoFactory 4.0 (CF4.0)” project. Through development of this software, they hope to drive automation within various steps of the development and manufacturing process. MPower intends to support the Cyto Facto team on commercial development as well as material ESG factors like internal governance and end-of-life management of pharmaceutical waste. 

Comments from Shin Kawamata, Cyto Facto CEO

"One year has passed since we spun out from FBRI, and we credit this milestone to our great business partners and stakeholders. Our team is very grateful to have raised nearly 1.2 billion Japanese yen through this funding round, and we feel it is a testament to the societal significance of our business and high expectations for our growth.

We are humbled and excited to work alongside our investors, with MPower Partners and D3, which are co-leading this round. D3 has continually supported Cyto Facto since their initial investment in summer of 2023, and we are grateful to receive their investment once more with MPower, a globally minded and ESG-focused venture capital fund. With other VCs, CVCs, and trading companies also joining this round, we are confident in our journey to grow into a globally competitive organization."

Cyto Facto’s Press Release regarding this round (Japanese)

URL: https://prtimes.jp/main/html/rd/p/000000004.000125654.html

About Cyto Facto

• Location: Hyogo, Kobe, Chuo Ward, Minatojima Minamimachi, 2 Chome−1-11 3F

• CEO: Shin Kawamata

• Business: Cell and gene therapy CMO/CDMO

• Corporate URL: https://www.cytofacto.com/company/

About MPower Partners

MPower Partners Fund is Japan’s first ESG-integrated global venture capital fund that aims to support entrepreneurs providing solutions to societal challenges through the power of technology, and to promote sustainable growth by incorporating ESG (Environment, Social, Governance) into their core business strategies.

For more information, please visit: https://www.mpower-partners.com

For inquiries, please contact: info@mpower-partners.com

This press release has been prepared for the purpose of providing information to qualified institutional investors and potential portfolio companies of the Fund, and is not a disclosure document pursuant to the Financial Instruments and Exchange Act, and does not constitute a solicitation or recommendation to purchase the Fund.