Houston organizations identify promising life science cos. at annual event

startups to watch

The Rice Alliance and BioHouston acknowledged innovations from a dozen promising health tech companies. Photo via Rice University

For the 13th year, the Texas Life Science Forum hosted by BioHouston and the Rice Alliance for Technology and Entrepreneurship celebrated innovative companies from around the world that are creating new treatments and solutions to today's biggest health care challenges.

This week, over 40 companies presenting their innovations across cancer, cardiovascular disease, biotechnology, and more. Nearly 700 venture capitalists, corporate innovation groups, angel networks, industry leaders, academics, service providers, and others attended the event on November 7 at Rice's BioScience Research Collaborative in the Texas Medical Center.

Just like in previous years, the event ended with the announcement of the 10 companies that were deemed "most promising" based on their pitches and technologies. Of the 10 companies named, six are headquartered in Houston and an additional two startups on the list have a presence here.

The 2024 most-promising life science companies are:

Houston-based clinical-stage cell therapy company March Biosciences is developing a pipeline of innovative therapies, beginning with targeting relapsed an refractory T cell lymphoma.

ImmunoGenesis, headquartered in Houston, is a clinical-stage biotechnology company developing a potent PD-1 pathway targeting agent specifically engineered for immuneexcluded tumors, which account for over 50 percent of all cancers

Taurus Vascular, based in Houston, is revolutionizing endovascular aneurysm repair by addressing the critical issues of residual aneurysm pressurization and endoleaks with its catheter-deployable aortocaval shunt.

Headquartered in Australia with a Houston presence, Foxo Technology offers HIPAA-compliant, communication software for anyone in health care.

Another Houston company, Voythos has built an AI platform to better predict and diagnose cardiovascular disease earlier to enhance quality and cost of care.

Dutch company Loop Robot, which has a presence in Houston, automates disinfection with its intelligent robot to make medical-grade disinfection faster, safer, and digitally auditable.

London-based Case45 develops and commercializes pan-cancer prognostic tests using unique integration of tumor evolution and AI and is beginning with breast and lung cancers.

OmniNano Pharmaceuticals, headquartered in Houston, has developed a nano-drug delivery platform technology enables simultaneous co-delivery of multiple therapeutic agents designed specifically to treat solid tumors.

Houston-based clinical-stage biopharmaceutical company Mongoose Bio is pioneering first-in-class T cell receptor T cell (TCR-T) therapies for cancer treatment.

Rua Diagnostics from New York is redefining point-of-care diagnostics with advanced micro gas chromatography technology for breath analysis that's capable of detecting a wide range of prevalent and deadly diseases.

In addition to this list, the event named two additional awards. United Kingdom's Cytecom, which provides quick and accurate diagnosis and treatment of blood infections stems, was selected by the crowd as the People's Choice award winner.

Last, but not least, BioHouston's Ann Tanabe awarded this year's Michael E. Debakey Award to Houston-based Autoimmunity BioSolutions, seed-stage biotech developing a next-generation, immuno-corrective therapy for treatment of autoimmune diseases to restore normal immune function.

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Four Houston startups have received over $40 million in funding from a Texas organization. Photo via Getty Images

4 Houston life science startups secure over $40M in CPRIT funding

cha-ching

Four Houston bioscience startups have collected nearly $43 million in grants from the Cancer Prevention and Research Institute of Texas (CPRIT).

Here’s a list of the four startups, the amount and purpose of each grant, and some background information about each company.

Stingray Therapeutics

CPRIT grant amount: $13,881,458

Purpose of grant: Clinical trial to evaluate an immunotherapy known as SR-8541A for treatment of advanced or metastatic solid tumors.

Company background: Stingray received a $2 million Small Business Innovation Research (SBIR) award in 2022. In conjunction with the award, Mohan Kaadige, a research associate professor at the Translational Genomics Research Institute, joined Stringray as the principal SR-8541A investigator.

“I … believe we have great potential to alleviate cancer suffering in the near future with this exciting technology,” says Kaadige.

March Biosciences

CPRIT grant amount: $13,358,637

Purpose of grant: Clinical trial to evaluate a T-cell immunotherapy (MB-105) for treatment of certain types of relapsed lymphoma.

Company background: March Biosciences, a Baylor College of Medicine spinout, recently received $4.8 million in funding from Cancer Focus Fund, affiliated with Houston’s MD Anderson Cancer Center.

“The breadth and quality of the support we are receiving from our local partners and institutions underscore Houston’s increasing prominence as a worldwide leader in cancer R&D and clinical research,” says Sarah Hein, co-founder and CEO of March Biosciences.

Mongoose Bio

CPRIT grant amount: $10,621,053

Purpose of grant: Development of T-cell therapies targeting solid-tumor cancer.

Company background: Mongoose founder Cassian Lee, a professor and researcher at MD Anderson, is a CPRIT scholar and a participant in Texas Medical Center Innovation’s 2023 Accelerator for Cancer Therapeutics.

“Mongoose Bio is a first-rate example of the use of CPRIT funds to fund a disruptive cell gene therapy … therapeutic with deep roots and origins in Texas. This innovation will benefit patients with solid tumors not just in Texas but the rest of the world,” says CPRIT.

FixNip

CPRIT grant amount: $4,844,088

Purpose of grant: Clinical study and manufacturing of a silicone implant that creates a soft, natural-looking nipple for women with breast cancer who’ve undergone post-mastectomy breast reconstruction. The clinical study will be done at MD Anderson.

Company background: In conjunction with the CPRIT grant, FixNip is moving its headquarters from Israel to Houston. Austin-based CPRIT became aware of FixNip during a May 2022 trade trip to Israel by the organization’s CEO, Wayne Roberts.

“Loss of nipple projection is the most pervasive problem across all currently existing nipple reconstruction solutions,” says FixNip.

Aside from the grants for the four Houston startups, CPRIT handed out two grants for recruitment of two cancer researchers to Houston:

  • $6 million grant to recruit Dr. Leonido Luznik of Johns Hopkins University to the Baylor College of Medicine. Luznik’s research focuses on allogeneic blood and marrow transplantation (alloBMT), a treatment for blood cancers.
  • $1.99 million grant to recruit Swiss researcher Christina Tringides to Rice University. Tringides is working on a “groundbreaking” treatment for brain tumors, says CPRIT.
This year, seven of the 10 most-promising life science companies are based in Houston. Photo courtesy of Rice Alliance

Houston startups dominate ‘most-promising’ companies announcement at annual event

on the list

Rice University played host this week to the 12th annual Texas Life Science Forum, where life science leaders and startup founders could network, learn and present pitches on their solutions to a wide array of health-related issues.

Hosted by Rice Alliance for Technology and Entrepreneurship and BioHouston on November 7, the event brought together more than 600 attendees for a series of keynote speakers and panels. This year, 45 early-stage therapeutic, diagnostic, medical device and digital health companies—many of which are based in Houston—also pitched their concepts.

Fort Worth-based AyuVis Research walked away from the event with the two top recognitions: The Michael E. DeBakey Memorial Life Science Award and the People's Choice Award. The company, which has developed a small molecule immunotherapy targeting bronchopulmonary dysplasia (BPD) in preterm neonates and other respiratory disorders. The company is raising a $20 million Series A round to support its clinical development and is slated to pitch at IGNITE Health’s Fire Pitch 2023 today, November 9, at the Ion.

Each year the Rice Alliance and BioHouston also name its 10 most promising life science companies, selected by investors—seven out of 10 of which are based in Houston. This year's selection included the following companies, in alphabetical order:

  • 7 Hills Pharma: This Houston-based clinical stage immunotherapy company has developed the concept of allosteric activation of integrins to facilitate cell adhesion and promote immune responses. The concept has uses in preventing infection and cancer, and increasing the effectiveness of oncology drugs and infectious disease vaccines.
  • Bairitone Health: This Houston-based company is building a scalable diagnostic system for sleep apnea anatomy utilizing home-use wearable, passive Sonar technology and AI techniques.
  • Diakonos Oncology: Also based in Houston, Diakonos' Dendritic Cell Vaccine was awarded the FDA’s Fast Track designation. The clinical-stage biotech company's immunotherapies have shown early successes for hard-to-reach, aggressive cancers like Glioblastoma Multiforme.
  • Mongoose Bio: With more than 20 years of research, Mongoose specializes in T cell-based therapies for diverse solid tumors TCR-based therapies in cancer patients. The Houston-based company has developed an immunopeptidome discovery platform for TCR-based therapies in cancer patients.
  • Nandi Life Sciences: Nandi is developing antibodies for Avastin-resistant ovarian cancer, with
  • further application in breast, colorectal and lung cancer. The company is based out of Texas Medical Center Innovation.
  • NKILT Therapeutics: This Houston-based company's seed-stage cell therapy has applications in solid tumors, such as colorectal cancer, ovarian cancer, clear cell renal carcinoma, endometrial
  • cancer and more. It is developing a novel and proprietary Chimeric ILT-Receptor.
  • NuVision Biotherapies: Based in the United Kingdom, NuVision has developed and proven a treatment for dry eye disease. It's known for its Omnigen and OmniLenz products and is raising a series A to scale, take the business to profitability and exit.
  • Panakeia Technologies: Also based in the UK, Panakeia has developed an AI-based software that can provide multi-omic biomarkers in minutes. Currently this process takes days or weeks. It's RuO platform can identify 4,500 known multi-omics cancer markers.
  • Taurus Vascular: A recent spin-out of the Texas Medical Center Innovation Biodesign program, Taurus is developing a novel, catheter-based solution for treating endoleaks, which can be related to aortic aneurysms.
  • YAP Therapeutics: The only California-based company to make the cut, this preclinical-stage biotech develops genetic medicines that leverage the company’s tissue renewal and regeneration platform to reverse and cure severe diseases, including heart failure, pulmonary diseases, retinal degeneration and hearing loss.

Last year, Bairitone Health took home the DeBakey and People's Choice awards.

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Houston lab explores how AI bots can help the elderly

AI for aging

The University of Houston’s Empathetic Lifespan AI & Robotics for Aging (ELARA) Lab is currently conducting research into how AI bots may be able to help the elderly live more social and independent lives through several ongoing initiatives.

The lab officially launched last month as part of the Gerald D. Hines College of Architecture & Design under the leadership of Assistant Professor Chorong Park. Part of the lab’s mission is tackling ongoing problems with aging, such as dealing with disabilities and social isolation. Researchers’ current work is focused on designing a new AI companion bot specifically tailored to the needs of older people.

“We need to take all the needs of older adults seriously,” Park said in a news release. “They won't use the robot if they don't feel at ease or if they feel they are being constantly watched.”

The field testing of new AI bots in this population hopes to overcome several traditional obstacles in technology use among the elderly. A study by Park shows that many older people have a fear of overt surveillance when using advanced AI. There is also ageism to consider. Most new technologies are designed with younger and employed buyers in mind, not retirees who may need help remembering daily tasks or accessing important information.

“The more older adults are excluded from technology development, the worse those technology gaps will become,” Park said. “AI and the majority of technologies are created for younger people, so my research method integrates older adults directly into the design process.”

ELARA recently collaborated with the Mamie George Community Center in Richmond, Texas, to track seniors’ response to desktop AI bots like Emo and Cupboo. Researchers also had participants use air-dry modeling clay to create their ideal robotic companion.

While the eventual AI bot may be able to help the elderly feel less isolated and more supported, there are concerns to consider. A study published in the Asian Journal of Psychology charted the development of delusional thinking in a 72-year-old woman who became convinced the empathic-response bot was in love with her. The rise of “AI psychosis” has the potential to exacerbate mental health problems, particularly in socially isolated people, which a quarter of Americans over the age of 65 are.

ELARA’s research is focused on creating “pet-like” AI models with enhanced trust cues. If it can overcome the dangers of socially isolated people relying on AI for companionship, it could be a big step forward for independent aging.

SpaceX IPO set to be biggest ever and could make Elon Musk a trillionaire

IPO News

SpaceX says it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world's first trillionaire.

The company, formally known as Space Exploration Technologies Corp., said Wednesday it will sell 555.6 million shares at $135 a piece in an initial public offering. The estimated proceeds would easily top the $26 billion raised by oil giant Saudi Aramco in 2019. The offering would also give SpaceX a market value of $1.77 trillion. Only six companies in the S&P 500 are currently worth more, with Nvidia tops at $5.2 trillion.

Besides the size of the offering and the expected proceeds, SpaceX's amended prospectus updates details about how much control of the company Musk will have. As SpaceX's CEO, chief technical officer and chairman, Musk's voting power will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held. According to the filing, Musk would have 82.4% of the voting power in the company.

Forbes currently values Musk's net worth at $826 billion and his stake in SpaceX at $542 billion. The estimated value of his SpaceX holdings was based on an overall value for the company of $1.25 trillion. Based on those numbers, a $1.77 trillion valuation for SpaceX would boost Musk's net worth by $223 billion, making him a trillionaire. However, much of Musk's worth is in stock that he has yet to cash in.

Even as it makes a bid for a blockbuster market debut, SpaceX is currently losing billions of dollars a year. The filing shows that the company lost $2.6 billion from operations last year on $18.7 billion in revenue, and the losses kept piling up at the start of this year, too.

Fantastical plans

Time will tell how SpaceX fares on the market. Musk's plans for the company are as fantastical as the money he hopes raise in the sale.

Colorful, even frightening in parts, the IPO document strikes a contrast with the typically dry, technical prose in IPO documents, detailing plans to use proceeds from the sale to help put men on the moon again and perhaps even Mars. In one section, it talks of a need to build "a permanent human colony" on the red planet with "at least one million inhabitants" as existential threats loom that could consign man to "the same fate as the dinosaurs."

Musk has almost equally ambitious plans for his other publicly traded company, Tesla. His goal is to transform the maker of electric vehicles into a producer of robotaxis and humanoid robots. Dan Ives of Wedbush Securities wrote in a research note that he expects Tesla and SpaceX to merge next year.

AI plays a key role

Key to the success of both companies — and any merged entity — is artificial intelligence. In its IPO filing, SpaceX says it sees potential revenue from AI of up to $26.5 trillion. But that depends on another lofty Musk ambition — putting data centers in space, which is not technologically possible at the moment.

Transforming his space company into a primarily AI-focused company will be a challenge for Musk, who started xAI in 2023 with 11 other co-founders who have all since left. Some were recruited away by rivals.

Its main AI product, the chatbot Grok, is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," said IDC analyst Arnal Dayaratna.

Dayaratna said that doesn't mean SpaceX doesn't have potential as a major AI player, thanks in part to its computing partnership with Anthropic and Musk's recent deal that gave SpaceX the rights to buy AI coding tool Cursor for $60 billion later this year. Folding in Cursor's capabilities would give SpaceX access to the coveted business customers now using Anthropic's Claude or OpenAI's ChatGPT.

SpaceX plans to use the net proceeds from the IPO to fund the expansion of infrastructure for its AI and rocket businesses, and to beef up the constellation of satellites that power Starlink Mobile, among other investments.

The company plans to list on the Nasdaq under the symbol "SPCX" and could begin trading as soon as the end of next week.

And SpaceX isn't the only colossal market debut investors are now bracing for. Earlier this week, Anthropic submitted a confidential filing with the U.S. Securities and Exchange Commission to officially start its own IPO clock.

OpenAI has not yet reported filing the initial SEC paperwork, but an IPO from the ChatGPT maker is widely expected.

"This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote.

___

Associated Press Technology Writer Matt O'Brien contributed.

New UH survey reveals concerns over AI data center growth in Houston

data findings

A new report out of the University of Houston shows that area residents remain wary of the long-term effects of operating data centers.

The recent survey from the University of Houston’s latest SPACE City Panel, conducted by the Center for Public Policy at the Hobby School of Public Affairs, shows that while 85 percent of Houston-area residents use AI, nearly 63 percent oppose the construction of AI data centers within 1 mile of their homes.

Respondents’ concerns centered around data centers’ high energy demand and the area’s power grid reliability. According to the survey, 32 percent of residents who oppose local data center projects would be more likely to support the centers if they relied on renewable energy over fossil fuels.

“Respondents understand that AI can bring economic and educational benefits, but they are also concerned about the physical infrastructure needed to fuel AI, especially data centers,” Soran Mohtadi, post-doctoral fellow at the Hobby School and a researcher on the report, said in a news release. “This physical infrastructure demands more electricity and water, leading to environmental impacts.”

Experts estimate that 6.5 gigawatts of data center capacity will be added to the Texas grid by 2030. And Houston’s data center capacity is predicted to more than double by 2028.

The Electric Reliability Council of Texas also projects electricity demand could reach 218 gigawatts by 2031, which would be more than double the record peak set in August 2023. Data centers are expected to account for 86 gigawatts of that new demand.

Survey respondents also said they are concerned about the state's future water supply, given the large amounts of water that data centers need to stay cool.

In terms of who’s responsible for that issue, 57.6 percent of respondents said they put the onus on Texas lawmakers, while 31.5 percent say tech companies should be responsible.

Additionally, more than 75 percent of respondents believed that data center developers and technology companies—not residents—should bear the cost of infrastructure upgrades to support data centers.

“Every decision legislators make has implications on residents’ everyday lives and local infrastructure now and in the future,” Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School, added in the news release. “This issue is going to become more important in years to come, so this is just the beginning.”

Read the full report here.

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