Locate Bio raises new funds to progress clinical trials

Locate Bio, a pioneering orthobiologics company, has completed an oversubscribed £9.2 million funding round from both new investors and existing investors Mercia Ventures and BGF. The proceeds will fund a clinical study of LDGraft, a bone graft substitute for spinal fusion.

The funding and clinical trial — known as RESTORE (A Randomized Study of LDGraft in Single Level Anterior Lumbar Interbody Fusion) — marks a significant milestone in the company’s mission. It aims to relieve suffering and restore the quality of life for millions of patients suffering from debilitating orthopaedic conditions worldwide.

Locate Bio combines decades of research in advanced drug delivery systems and uses a proprietary protein encapsulation method to deliver a powerful therapeutic protein, called rhBMP-2. This is combined with an osteoconductive scaffold in LDGraft, which received an US Food and Drug Administration (FDA) breakthrough device designation in 2023.

John von Benecke, CEO of Locate Bio, said: “This oversubscribed funding round underscores the significant investor confidence in the company’s vision, and the potential of LDGraft to become the most relied-on bone graft substitute globally.”

“With the rapidly ageing global population, there is an urgent need for products that address chronic, progressive, and debilitating back pain. With a design inspired by nature for a more biomimetic approach to the release of rhBMP-2, we are incredibly excited about the potential of LDGraft. The RESTORE clinical trial is an important step towards realising that ambition.”

Alex Gwyther, Investor at Mercia Ventures, added: “We have long believed in Locate Bio’s mission to develop next-generation orthobiologics that can transform patients’ lives. We are pleased to see both the progress in the technology and the world-class team that the company has brought together.”