5 Houston biotech companies taking health care to new levels

The future is now

With the Texas Medical Center in their backyard, these Houston biotech companies are creating breakthrough technologies. Getty Images

Houston is the home of the largest medical center in the world, so it comes as no surprise that the Bayou City is also home to breakthrough technologies. Here are five Houston companies developing some of this biotech advancements.

Moleculin Biotech Inc.

Houston-based Moleculin has three different oncology technologies currently in trials. Getty Images

Immunotherapy and personalized medicine get all the headlines lately, but in the fight against cancer, a natural compound created by bees could beat them in winning one battle.

In 2007, chairman and CEO Walter Klemp founded Moleculin Biotech Inc. as a private company. The former CPA had found success in life sciences with a company that sold devices for the treatment of acne. That introduction into the field of medical technology pushed him toward more profound issues than spotty skin.

"Coincidentally, the inventor of that technology had a brother who was a neuro-oncologist at MD Anderson," Klemp recalls.

The since-deceased Dr. Charles Conrad slowly lured Klemp into what he calls the "cancer ecosphere" of MD Anderson. In 2016, the company went public. And it looks like sooner rather than later, it could make major inroads against some of the toughest cancers to beat. Read the full story here.

Cavu Biotherapies

Dr. Colleen O'Connor has adapted immunotherapy treatments to be used in dogs. Courtesy of CAVU Biotherapies

Breakthrough biotech doesn't have to just be for humans. More than three years after its founding, Houston-based veterinary biotech company CAVU Biotherapies' had its first cancer patient: a black Labrador in Pennsylvania diagnosed with B-cell lymphoma.

Dr. Colleen O'Connor, CEO and founder of CAVU Biotherapies, established the company in July 2015 with a goal to help pets live longer post-cancer diagnoses. O'Connor, who earned a PhD in toxicology with a specialty in immunology, has more than a decade of hands-on experience researching cancer treatments.

"Our goal is to scale up and be able to increase our dogs' qualities of life with us," O'Connor said. "We want to keep families intact longer and we want to be able to modernize cancer care for our animals." Read the full story here.

Innovative Biochips

iBiochips, led by founder Lidong Qin, was awarded a $1.5 million grant in September to help develop a new technology that delivers data about the cell's genetic makeup and reports abnormalities. Courtesy of Lidong Qin

Innovative Biochips, a Houston-based biotechnology company, is one step closer to commercializing technology that the company hopes will provide an opportunity for researchers to detect diseases earlier.

The company was founded three years ago by Dr. Lidong Qin, a professor at the Houston Methodist Research Institute's department of nanomedicine. He launched iBiochips as an independent faculty startup that licensed technology from Houston Methodist. Qin says he wanted to engineer and manufacture devices that focus on revolutionizing single-cell isolation and genetic analysis. Read the full story here.

Celltex

Celltex's stem cell technology has received positive results from its multiple sclerosis, Parkinson's, and rheumatoid arthritis patients. Courtesy of Celltex

A Houston stem cell company is making strides in regenerative medicine. Celltex's treatment has been proved effective with its patients. Eighty-three percent of multiple sclerosis patients have reported improvement of symptoms specific to their disease, as have 73 percent of Parkinson's sufferers. But the staggering fact is that 100 percent of 58 respondents with rheumatoid arthritis say they have benefited.

David Eller, chairman, co-founder and CEO of the company, also recently announced the company's expansion to Saudi Arabia. Read the full story here.

Ridgeline Therapeutics

Houston-based Ridgeline Therapeutics isn't going to allow you beat aging, but someday it may well help you to live without muscle loss or diabetes. Getty Images

Stan Watowich pictures a world where elderly people have the same healthy muscles they had at a younger age. Watowich is CEO of Ridgeline Therapeutics, a spin-off company of the University of Texas Medical Branch in Galveston where he is an associate professor of biochemistry and molecular biology, and he wants to make it clear that he is not going to cure aging.

"You and I are still going to get old," he says. "But we have our hopes that as we get old our muscles will stay healthy."

He's talking about the drug candidate, RLT-72484. It has been shown to reactivate muscle stem cells and regenerate skeletal muscle in aged laboratory mice. Read the full story here.


Saudi Arabian representatives met at Houston-based Celltex Therapeutics Corp.'s office earlier this month to finalize a memorandum of understanding. Courtesy of Celltex

Houston biotech company plans expansion into Saudi Arabian market

On the move

A Houston company that uses stem cell technology to treat patients suffering from degenerative diseases is taking its patented technology to another continent.

Celltex Therapeutics Corp. has entered a memorandum of understanding with Saudi Arabia's Research Products Development Company. As a part of the partnership solidified by the MOU, Celltex will open an office in Riyadh, Saudi Arabia, later this year. The new office will aid the commercialization of Celltex's technology and expand the company's presence to Saudi Arabia.

"We are honored to forge a relationship with Saudi Arabia," says David G. Eller, CEO and chairman of Celltex, in a release. "Our collaboration with this first-rate global cohort furthers our commitment to initiating breakthroughs in regenerative medicine, and our presence in Riyadh will further expand our opportunities to improve the quality of life of those in need."

The MOU is a part of the country's effort to diversify the economy that's been dominated by oil and gas, the release says. As a part of Saudi Arabia's National Industrial Development and Logistic Program, Celltex and other United States companies were invited to Riyadh to sign MOUs in January, which resulted in billions of dollars in Saudi investment, per the release.

On February 4, the two parties reconvened at Celltex's office in Houston. The group included top Saudi dignitaries, Abdulmohsen Almajnouni, CEO of RPDC, as well as others.

"We are excited to explore business opportunities with Celltex, a biotechnology company with the innovative proprietary technology, patents and know-how for the cultivation and therapeutic application of stem cells," Almajnouni says in the release.

Celltex currently extracts patients' stem cells at various partner facilities across the United States, but implementation happens at a hospital in Mexico, due to FDA regulations and red tap. However, Eller doesn't foresee this being the process forever.

"We have very good relations with the US FDA," he says in an InnovationMap article. "They are very interested in what we know. Our approach is really is very progressive and we've grown every year."

The company's treatment has been proved effective with its patients. Eighty-three percent of multiple sclerosis patients have reported improvement of symptoms specific to their disease, as have 73 percent of Parkinson's sufferers. But the staggering fact is that 100 percent of 58 respondents with rheumatoid arthritis say they have benefited.

From a locally sourced meal service company to stem cell research and a balance measuring device, this week's innovators are ones to know in the health industry. Courtesy photos

3 Houston health-focused innovators to know this week

Who's who

More and more Americans are focusing on their health, from eating right to experimenting with new treatments or devices. These three Houston innovators are riding the coattails of this health-focused movement with their startups. With advances in technology and the movement only growing faster and faster, you'd better keep your eye on these Houston innovators.

Marla Murphy, founder of The Blonde Pantry

Courtesy of The Blonde Pantry

Marla Murphy didn't feel like she was doing enough to promote health and wellness with her platform, The Blonde Pantry. So, she expanded it to incorporate locally sourced produce and easy-to-make recipes she gets ready every weekend to deliver to her members by Monday.

"It's not about selling meals and moving on, I want this to be a lifestyle company that is really founded and has deep roots in Houston," says Murphy in a InnovationMap story.

Murphy tells InnovationMap that in the next year she hopes to expand into the retail space and find a bigger commercial kitchen to function as their own. She also hopes to partner with companies outside of food and continue to nourish lives in someway.

David Eller, chairman, co-founder and CEO of Celltex

Courtesy of Celltex

Stem cell treatment is personal to David Eller, chairman, co-founder and CEO of Celltex. Eller had the treatment in hopes of resolving pain from a college football injury.

"I would go to work and put four to six Advil in my pocket," Eller says in an InnovationMap story about Celltex's technology. Within months, he stopped needing those pills.

Houston-based Celltex tracks its progress with its patients. Eighty-three percent of multiple sclerosis patients have reported improvement of symptoms specific to their disease, as have 73 percent of Parkinson's sufferers. But the staggering fact is that 100 percent of 58 respondents with rheumatoid arthritis say they have benefited.

Katharine Forth, founder and CEO of Zibrio

Courtesy of Zibrio

Katharine Forth has used a technology she developed with her colleague at NASA to measure balance in astronauts to create a device that any terrestrial human can now use from the comfort of their own homes.

"The machines typically used for balance measurement can be as large as a telephone booth, so we invented a new way to measure postural control using a much smaller mechanism that fit inside a moon boot," Forth says in an InnovationMap article about Zibrio, The Balance Company. Zibrio, The Balance Company.

Zibrio is now a finalist for the 2019 SXSW Pitch in the health and wearables category and will take its balance technology to the stage in March.

Celltex's stem cell technology has received positive results from its multiple sclerosis, Parkinson's, and rheumatoid arthritis patients. Courtesy of Celltex

Houston company uses stem cell technology to treat patients suffering from degenerative diseases

Regeneration nation

The medical community has former governor Rick Perry to thank for a major stride in regenerative medicine.

"He had just gotten elected for the last time and he wanted to leave a legacy. He was tired of people going to Japan or Germany when they needed stem cells," recalls David Eller, chairman, co-founder and CEO of Celltex.

That was 2011, the year that the former president of Dupont Pharmeceuticals-Europe and orthopedic surgeon Dr. Stanley Jones incorporated as Celltex. Perry got the law passed to make it legal to harvest his stem cells, and Jones implanted them while the governor was under the knife for a spinal fusion surgery.

Perry resigned from the Celltex board in 2017, but the truth is, the company no longer needed his clout. Just a year after its debut, the company had in excess of 200 clients, each paying a banking enrollment fee of $6,500. Now, there are close to 1,300.

From research to recovery
Eller is originally from Houston, and he says his hometown is the ideal home base for the company, with its access to the world's largest medical center. The Galleria-area office and lab employ 35 people, with about 50 workers worldwide.

Close to the same time that his friend Perry received his stem cells, Eller also had the treatment in hopes of resolving pain from a college football injury.

"I would go to work and put four to six Advil in my pocket," the CEO recalls.

Within months, all of them remained in his pocket.

But others have had even more dramatic results. Celltex checks in with patients three, six and nine months after their treatments to find out how they're doing. Eighty-three percent of multiple sclerosis patients have reported improvement of symptoms specific to their disease, as have 73 percent of Parkinson's sufferers. But the staggering fact is that 100 percent of 58 respondents with rheumatoid arthritis say they have benefited.

Implementation and the FDA
Celltex's chief scientific officer, Dr. Jane Young, co-authored a study of two severe juvenile rheumatoid arthritis patients whose conditions didn't respond to standard treatments. After trying stem cells, both reported marked improvement in autonomic nervous system and immune function.

Stem cells are gathered through a patient's fat, which can be extracted at any of the 80 facilities around the country that partner with Celltex. The fat is processed at the Houston lab, where processing takes 30 to 35 days.

"We have 15 billion cells in process each day," says Erik Eller, the company's vice president of operations, clarifying that some clients' cells grow faster than others'.

It takes 14 days to come out of cryostasis and leave the lab. From there, the stem cells travel to Hospital Galenia in Cancun, Mexico for implantation, since the FDA categorizes stem cells as a drug if they have expanded as they do at Celltex. That means that a patient cannot use his own stem cells in the United States without a clinical trial. To circumnavigate the red tape, Celltex has simply partnered with the luxurious Mexican hospital.

This is currently the company's biggest challenge, says David Eller, but one he expects to overcome.

"We have very good relations with the US FDA," he says. "They are very interested in what we know. Our approach is really is very progressive and we've grown every year."

Ultimately, Eller hopes to be able to implant stem cells in the United States. But the company's foreign growth is a good start. Celltex is now operating in the Bahamas and is hoping to add Australian extraction facilities sometime this year. They are also in negotiations with a team from Saudi Arabia interested in expanding Celltex to the Middle East.

Other goals for Celltex include improvements both in the realms of sales and revenue and streamlining and improving the safety and efficacy of treatment. Research collaborations with Baylor College of Medicine and Texas A&M will help with the company's medical credibility. This all may help to convince the FDA to allow the Celltex to get a biologics license, the final proof that it is not a drug company. But no matter how it's categorized, Celltex is growing exponentially as its cells.

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8+ can't-miss Houston business and innovation events in April

where to be

Editor’s note: Houston's weeklong innovation festival kicks off April, followed by Rice University's globally recognized pitch competition returning for its 26th year. Plus, find coworking pop-ups, industry meetups, pitch battles and even a crawfish boil on the calendar. Here’s what not to miss and how to register. Please note: this article might be updated to add more events.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event began March 30. Register here.

April 2 — Industrious Coworking Day

Enjoy a complimentary day of cowering at Industrious and network with professionals at the Ion. Breakfast, snacks, wifi and workspace tours are included. Following the cowering day, Industrious will host happy hour at Second Draught from 4-6 p.m.

This event is Thursday, April 2, from 8:30 a.m.-5 p.m. at the Ion. Register here.

April 2 — Technology Summit for Women

The fourth annual Women in Tech Cummil will feature speakers across three core tracks: Transformation + Digital strategy, Cyber + Risk + Resilience, and AI in Practice. Pearl Chu, director of technical domains and university relations at SLB, will give the opening remarks. Other panelists come from CenterPoint Energy, BP, Technip Energies and other leading companies.

This event is Thursday, April 2, from 2-5 p.m. at the Ion. Register here.

April 8 — Veterans Business Battle

Hear pitches from veterans and entrepreneurs as they compete for more than $10 million in investments at Rice Businesses' 12th annual Veterans Business Battle. This year, the two-day event will also feature a Small Business Expo, which invites Houston-based, veteran-owned businesses to participate in education, networking and the opportunity to showcase their business. Moonshots Capital and Mercury Fund will also host a fireside chat.

This event begins Wednesday, April 8, at 11 a.m. at the Ion. Click here to register.

April 9-11 — Rice Business Plan Competition

The Rice Alliance for Technology and Entrepreneurship will host the 26th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event begins Thursday, April 9. Find more information here.

April 10 — BioHouston Chili Cookoff

Connect with Houston's life sciences community at BioHouston's 21st annual chili cookout. This event is geared toward startup founders, researchers and industry veterans alike.

This event is Friday, April 10, from noon-4 p.m. at Bayou City Event Center. Register here.

April 14 — Mercury Fund Day at the Ion: Agentic Commerce

Don’t miss the latest installment of Mercury Fund Day at the Ion, previously known as Software Day. The recurring monthly event features office hours (by application), a keynote and networking opportunities. This month's topic focuses on agentic commerce.

This event is Tuesday, April 14, from 3:30-7 p.m. at the Ion. Register here.

April 19 – UH Energy Industry Crawfish Boil

Head to the UH Cullen College of Engineering Green Space for the 35th annual UH Energy Industry Crawfish Boil. The event will include a student showcase, STEM activities, a kids zone, live music, networking and, of course, crawfish. Proceeds from the event will support the multidisciplinary capstone fund that aims to increase professional readiness for Cullen College engineering and technology students.

This event is Sunday, April 19, from 1-5 p.m. at the Cullen College of Engineering Green Space. Find more information here.

April 24 — Rice Business Healthcare Conference

Leading experts, innovators and the next generation of healthcare leaders will converge at the Rice Business Healthcare Conference. Hosted by the Rice Business Healthcare Association, the conference will explore AI's potential impact on the sector.

This event is Friday, April 24, from 8 a.m.-2 p.m. at McNair Hall on Rice University's campus. Find more information here.

Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

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