Canadian Government Invests $75M More in Aspect Biosystems

Canadian bioprinting startup Aspect Biosystems has received a $72.75 million investment from Canada and the province of British Columbia. This supports earlier investments amounting to $200 million in Aspect’s technology and a partnership with Novo Nordisk.

“This significant investment from the Governments of Canada and B.C. sends a strong signal of support for building and integrating the capabilities needed to discover, develop, and clinically manufacture new medicines for people with serious diseases. This is a major step forward on our bold mission to pioneer an entirely new category of regenerative medicine and build an enduring and globally leading biotech that is delivering sustainable, life-changing impact to patients at home and around the world,” said Aspect Biosystems CEO Tamer Mohamed.

“Today’s investment in Aspect Biosystems strengthens Canada’s biotech sector, enhancing innovation and leadership in health care. It accelerates our transition from ideas to globally competitive products, while also bolstering our response to health emergencies, attracting international investments and creating high-quality jobs for Canadians. British Columbia’s impressive talent pool further fuels our innovation and leadership in the next generation of medicines,” stated François-Philippe Champagne, Minister of Innovation, Science and Industry.

“B.C. is home to the fastest growing life sciences sector in Canada and continues to get noticed on the global stage for the incredible work being done here. Helping B.C. based life sciences and biomanufacturing companies like Aspect anchor and grow in our province is enhancing health care outcomes for British Columbians and creating hundreds of new, high-paying, highly skilled jobs for people,” said Brenda Bailey, British Columbia Minister of Jobs, Economic Development and Innovation.

It’s rare for governments to invest directly in tech startups, and rarer still for multiple parts of the same country to contribute funds. Could this approach be more efficient than just giving grants? It might allow governments to profit from entrepreneurial success, enabling further investment in local startups. However, it could also make government bodies more like VCs, potentially fostering a short-term focus and reducing long-term technological innovation. Additionally, it might make them more likely to follow trends rather than fund truly unique ventures. This is a puzzling trend to watch.

Why does Aspect need so much money? Aspect is an implantable tissue company, but instead of betting on finding one tissue that works or bringing a single tissue to market, they are taking a smarter approach. The company is building a technology platform that allows others to use its complete bioprinting infrastructure to bring their drugs to market. This strategy is brilliant because it offloads the $1 billion to $3 billion cost of drug development to the drug companies. Instead of saying, “buy our printers,” Aspect offers drug firms the ability to use and rely on their technology from inception to commercialization.

This approach seems much more robust and future-proof than single systems. It also makes working with Aspect much stickier, generating more revenue from clients throughout the engagement’s lifetime. Rather than taking a company-sized bet on one drug, the firm aims to become the connective tissue for tissue discovery. French company Poietis has a similar setup. Aspect calls this approach the “full-stack tissue therapeutic platform.”

Rather than aiming for a single win with one drug, the company is integrating its technology with that of big pharma companies. It may not directly cure diabetes, but it will enable partners like Novo Nordisk to develop many drugs. If this infrastructure approach succeeds, the exit will be impressive enough for all investors. It’s worth noting that the Novo Nordisk partnership alone is said to be worth $2.6 billion. Everyone always talks about selling picks and shovels in a gold rush; invest now in Aspect’s shovel factory.