A Toronto-based biotechnology startup is making waves in Canada's pharmaceutical sector by tackling a problem that has long plagued drug development: millions of dollars in abandoned research.
Biossil, which recently exited stealth mode, has secured approximately $70 million USD in funding to pursue an innovative strategy—acquiring drug candidates that failed in competitors' clinical trials and reviving them using artificial intelligence.
A Fresh Approach to Drug Discovery
The startup's model flips traditional pharmaceutical development on its head. Rather than starting from scratch with new molecules, Biossil identifies promising compounds that other companies have abandoned, purchases or licenses them, and applies advanced AI analysis to determine whether they might succeed where they previously failed.
"We believe AI is one of the most important technologies ever created, and its most profound application will be in healthcare," said Anthony Mouchantaf, Biossil's co-founder and chief executive officer. "Our focus is translating that capability into new therapies now, not in years or decades."
Heavy-Hitting Backing
The company's funding round includes support from OpenAI and the prestigious Founders Fund, alongside investments from Modern Capital, Staircase Ventures, Golden Ventures, Panache Ventures, Quiet Capital, 137 Ventures, and DRI Healthcare. Mouchantaf previously served as director of venture capital at RBCx, where he shaped the banking giant's investment strategy.
Biossil's co-founder and chief scientific officer, Dr. Alexander Mosa, brings clinical expertise as a trained internal medicine specialist.
Drugs in Development Now
According to the company's website, Biossil has multiple drug candidates currently in clinical trials targeting some of medicine's most challenging conditions: sickle cell disease, idiopathic pulmonary fibrosis, glioblastoma, breast cancer, and Alzheimer's disease. Nearly a dozen additional conditions are in the pipeline.
"We have several drugs currently in clinical trials, and our goal is to bring drugs to market in the coming years," Mouchantaf told media outlets this week.
The company has also established licensing agreements with other pharmaceutical and biotech firms that are already generating revenue and milestone-based payments.
Building the Team
Operating primarily from Toronto with additional operations in Boston, Biossil currently employs around 30 people split between its core platform team and development teams. The platform team oversees critical functions including technology, clinical affairs, legal matters, and quality assurance, while development teams focus on advancing individual molecules toward approval.
While the company declined to disclose its current valuation, Mouchantaf confirmed it sits in the nine-figure range. Biossil has not raised debt financing but is actively evaluating additional off-balance-sheet funding sources to support its aggressive development timeline.
This story is based on reporting by BetaKit. Read the original article at BetaKit.com.