Why We Invested: Moat Biotechnology
A Revolution in Treating Respiratory Disease
At Cortado Ventures, we back entrepreneurs that are inventing the future, and we are thrilled about our investment in Moat Biotechnology. Moat’s technology is based on a next-generation adenovirus platform from the Mayo Clinic. The company is led by two biotech industry legends, who also founded Alexion Pharmaceuticals (acquired by AstraZeneca for $39 billion) and Selexys (acquired by Novartis for $665 million).
With an initial close of $6.5 million for their intranasal/inhaled COVID-19 vaccine, Moat Biotechnology is the first western company to demonstrate a successful inhaled COVID booster in a human clinical trial. They have now started a larger Phase 2 study in Australia to expand upon that initial vision.
The Technology
Moat’s core innovation was developed by Dr. Michael Barry, who runs the Mayo Clinic’s Vaccine Engineering Lab. It is a concept called “replication-deficient adenovirus.” Simply put, a virus’s genome is modified such that it can enter a human cell and make copies of its genetic material, but the resulting viral RNA can’t package itself into a new virus. Thus, you get approximately 10,000 times the immune response than you would with a single “dead” virus, without any risk of infection or transmission.
This enhanced immune response allows a vaccine to be delivered via a nasal mist (aka “intra-nasally”), challenging the exact mucosal tissues where inhaled viruses enter the body. We believe this will result in more durable protection from common viruses, such as COVID, influenza, the common cold, etc.
Perhaps most exciting of all, the team has early data suggesting that you could deliver the same vaccine orally and get the same mucosal response to an inhaled virus. This would truly be a game-changer for patients. We believe that the platform can be used for any respiratory pathogen, and that it will also strengthen mucosal immunity.
Simply put, we believe it will revolutionize the treatment of all respiratory viruses, and maybe even make the common cold a thing of the past.
The Investment
Cortado’s decision to invest was quite simple. We have known Moat’s core team of experienced scientists and clinicians for well over a decade, as well as their strong track record of success. In addition to co-founding Alexion, Dr. Scott Rollins and Dr. Russell Rother were also co-inventors of Soliris, one of the most successful drug franchises of all time. We were also impressed by their clinical results, noting how rare it is for a new biopharma company to have completed first-in-human studies.
At the earliest stages, the factors that matter most in life sciences companies are (1) the team, and (2) strong early indications that a technology can resolve a large unmet medical need. In both cases Moat Bio is off the charts. We were thus excited to invest $5.5m of the $6.5m initial closing, alongside Mayo Clinic Ventures, Boyd Street Ventures, and a handful of angels. There will likely be at least one more round, so if you are an institutional investor, please feel free to contact us.
Looking Ahead
At Cortado Ventures, we are dedicated to supporting groundbreaking technologies and visionary entrepreneurs who strive to make a positive impact on society. Our investment in Moat Biotechnology reflects our belief in their intranasal/inhaled COVID-19 vaccine’s potential to revolutionize the field of vaccination and address the urgent global health challenges we currently face. By assembling a world-class team, Moat Biotechnology is poised to shape the future of respiratory infection prevention and treatment. We are excited to be a part of their journey, and look forward to the positive outcomes their innovative approach will bring to public health worldwide.
Mike Moradi is an accomplished entrepreneur and civic leader. He is CEO and a Co-Founder of Sensulin, LLC, which is developing a 24-hour glucose-responsive insulin for type I/II diabetes. Sensulin could eliminate the need for 4–6 separate basal and prandial injections per day, by providing the patient’s entire daily dose in one administration. Mike is also a General Partner at Cortado Ventures.
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At Cortado Ventures, we invest in pre-seed and seed stage startups with a focus on energy & logistics, life sciences, and the future of work. If you are a Midcontinent startup or looking to invest in these startups, contact us to learn more.
