January 24, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

This is the second time in a matter of weeks that we hear news of investments being made to advance bacteriophage technologies. Santiago, Chile-based PhageLab announced it has closed on $11 million in funding from Nazca, Collaborative Fund, Water Lemon Ventures, and individual investor Kevin Efrusy, in support of its development of bacteriophage-based applications designed to destroy multidrug resistant bacteria in the livestock industry. 

This news comes only weeks after another biotech startup, UniFHAS, announced its successful $1.4 million Seed round to advance bacteriophage solutions beginning with the poultry industry. 

As these solutions are increasingly gaining traction and backing, let’s go back and revisit a quick primer on what phages are. 

Coming from the root word “phagein” meaning “to eat”, bacteriophages are, in short, small viruses that infect and replicate only in bacteria. Found nearly everywhere – in the soil, plants, animals, the ocean, and deep within the Earth’s crust – it is estimated that there are more bacteriophages on Earth than any other form of biological entity. They have long been the focus of scientific interest for their potential in advancing our understanding of molecular biology, antimicrobial resistance, and, in this case, their use as alternatives to heavy antibiotic usage for combating agricultural bacterial infections and diseases. 

Global protein consumption is expected to climb at a compounded annual growth rate (CAGR) of 1.7 percent, reaching 943 million tons by 2054, according to Lux Research. And with increased production has come increases in antibiotic-resistant outbreaks in livestock farming due to the emergence of treatment-resistant bacteria. Shockingly, since 2019, 50 percent of all antibiotics used in intensive animal farming systems have become ineffective, and more than 4.95 million deaths worldwide were related to multidrug resistance. 

PhageLab’s proprietary microbial bioinformatics platform is designed to search and develop bacteriophage-based treatments by employing AI to generate “customized cocktails” that effectively manage pathogenic bacteria in the livestock industry.

The company explained that the training dataset for their platform is based on more than a decade of experimentation data and tested phage repositories, to create one of the world’s largest industry bacterial databases. PhageLab uses this library to create custom solutions in only 45 days that are safe and effective in eliminating livestock bacteria.

The company has already marketed INSPEKTOR,  a product that eliminates and reduces the presence of Salmonella spp. in broiler chickens. It also is about to launch its E. coli product for broiler chickens, and develop products to prevent infectious diarrhea in pigs, in addition to having a service for clients that identifies, detects, and characterizes microorganisms in livestock production. 

“PhageLab is focused on progressing breakthrough science that provides long-term solutions to today’s global antibiotic resistance challenges,” said investor Kevin Efrusy. “The company is a true pioneer in the industry, bringing not one, but two never before seen phage-based solutions to market that have tremendous potential to innovate and advance sustainability in our food system and human health.”

Efrusy continued, “Unlike traditional biotechs, PhageLab has a shorter development time to commercialization at lower cost of capital. The company is already making an impact in addressing the growing health concern of multidrug antibiotic resistance.”

With this funding, PhageLab intends to advance its pipeline of phage-based solutions and establish a commercial position in Brazil, its main targeted market, before expanding its technology into the U.S. With offices in Chile, Spain, and Brazil, it also plans to grow its global team which currently stands at nearly 100 employees across Latin America and Europe. 

“We’re thrilled to attract a top-tier investor syndicate that supports our business and mission of combating antibiotic resistance,” said Hans Pieringer, CEO & co-founder, PhageLab. “Solving the antibiotic resistance crisis requires multi-stakeholder collaboration across industry, policy, and science, and we are committed to developing the best solutions possible. Starting in animal health allows us to expand our global impact quickly, and this funding will enable our expansion into both new geographies this year, as well as product development.”

“We’re excited to be part of PhageLab’s journey, a true Latin American trailblazer dedicated to tackling worldwide health and food security issues. Their remarkable technology, coupled with an outstanding team, fills us with pride as we welcome them into our portfolio,” said Hector Sepulveda, managing partner, Nazca. “Together, we’re reshaping the battle against antibiotic resistance and propelling the future of livestock health – a cause close to our hearts.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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