1 The EIC Accelerator Project
EIC Accelerator Program Overview
The European Innovation Council (EIC) Accelerator program represents a critical initiative within the European Union's framework aimed at fostering innovation and supporting high-potential startups, particularly in the DeepTech sector. The program is designed to assist small and medium-sized enterprises (SMEs) and startups in scaling their innovative solutions, thereby enhancing Europe's competitiveness and economic growth.
Funding Structure
The EIC Accelerator offers a blended finance model, combining grants and equity investments to provide comprehensive financial support. Applicants can receive a grant of up to €2.5 million to cover costs related to product development, testing, and market entry. Additionally, the program offers equity funding that has undergone adjustments based on the year of application. Until 2024, startups can access equity investments of up to €15 million, which will subsequently be reduced to a maximum of €10 million starting in 2025. This dual funding structure is designed to lower the financial burden on innovative companies and incentivize private sector investments.
Purpose and Role in the Ecosystem
The EIC Accelerator aims to bridge the funding gap often encountered by startups in the later stages of development. By providing substantial financial backing, the program enhances the capability of companies to innovate and scale their operations. This support not only enables startups to attract additional funding from private investors but also strengthens their market presence. The EIC plays a pivotal role in nurturing the European DeepTech ecosystem, facilitating cutting-edge research and development that can lead to groundbreaking products and services.
Case Study: PALOBIOFARMA, S.L. and the RESPIRE Project
One notable winner of the EIC Accelerator is PALOBIOFARMA, S.L., a Spanish biotechnology company that has made significant strides in the field of respiratory diseases. The company secured funding for its project titled RESPIRE, which focuses on developing the first oral disease-modifying treatment for chronic obstructive pulmonary disease (COPD).
Project Overview: RESPIRE
The RESPIRE project aims to transform the treatment landscape for COPD, a progressive lung disease characterized by airflow limitation and significant morbidity. Traditional therapies for COPD primarily target symptom relief rather than modifying the underlying disease progression. PALOBIOFARMA's innovative approach seeks to address this gap by developing a disease-modifying treatment that can alter the course of the disease, significantly improving patient outcomes.
Technology Basics and Background
The technology underpinning the RESPIRE project is based on a novel pharmacological approach that aims to modify the disease mechanism at the molecular level. COPD is often associated with chronic inflammation, oxidative stress, and structural changes in the lung tissue. PALOBIOFARMA’s solution involves the identification and development of compounds that can effectively target these pathological processes.
The research conducted by PALOBIOFARMA leverages advanced drug delivery systems and biomolecular engineering to enhance the efficacy and bioavailability of therapeutic agents. By focusing on oral administration, the company aims to improve patient compliance and overall quality of life, addressing a significant barrier in current COPD management strategies.
The development of RESPIRE not only represents a potential breakthrough for COPD patients but also embodies the EIC Accelerator's mission to support transformative innovations that can lead to substantial health benefits and economic impact within the European Union.
Conclusion
The EIC Accelerator program is a vital resource for startups in the European DeepTech ecosystem, providing targeted financial support that enables them to scale and innovate. The successful projects, such as PALOBIOFARMA's RESPIRE, exemplify the program's potential to catalyze significant advancements in healthcare and beyond, ultimately contributing to improved societal outcomes and economic growth within Europe.
2 The Funding Rounds
Financing Raised
Since submitting its successful EIC Accelerator Step 2 proposal in October 2021, Palobiofarma S.L. has continued to attract significant investment. The company has raised a total of €11 million across seven rounds of private capital investment, involving both venture and strategic investors. Alongside this private funding, Palobiofarma has also secured €7.9 million in public funding—of which €6.7 million came as loans—including substantial support from the European Union’s EIC Accelerator program for its advanced clinical pipeline.
Notable Funding Rounds Since October 2021
Summary Table: Key Funding Rounds
| Date | Amount | Lead Investors | Additional Participants | Purpose/Notes |
|---|---|---|---|---|
| May 2023 | €7M | Inveready Biotech IV | Sodena, promoter team | Early VC / Clinical pipeline |
| May 2023 | Not stated | Foundation for Prader-Willi Research | — | Convertible loan; PBF-999 trial |
*Exact amount not disclosed.
Investor Information
Key investors participating across these rounds include: - Inveready: Consistent lead investor through several funds including seed-stage and later rounds such as Inveready Biotech III & IV.
- Sodena: Public development agency supporting regional innovation in Navarra.
- Foundation for Prader-Willi Research: Provided targeted trial support via convertible loan structure in venture philanthropy model.
In addition to equity financing, XOMA Corporation acquired royalty interests from Palobiofarma on six clinical assets (including NIR178 developed by Novartis), representing another form of monetization and indirect financing rather than traditional VC equity or debt rounds after September 2019.
Company Valuation
As of February 2024 estimates by Dealroom.co, Palobiofarma's enterprise valuation is projected between $31–46 million USD (~€28–42 million). No direct data is available regarding pre/post-money valuations associated with specific recent fundraising events.
Exit Events: IPOs or Buyouts
There are no records indicating that Palobiofarma S.L. has undergone an IPO or been acquired since winning EIC Accelerator funding up until April 23, 2025. Instead:
- The company continues as a privately held biotech SME.
- Monetizing intellectual property through licensing deals—such as licensing PBF-680 to Novartis—and royalty sales like those with XOMA have served as liquidity events but not exits at the company level.
Sources
- Palobiofarma closes a €7M round with the participation of Inveready
- News & Events - Palobiofarma
- Palobiofarma S.L. - EuroQuity
- Palobiofarma announces completion Phase II trial COPD
- XOMA acquires royalty interest position from Palobiofarma
- PaloBioFarma financials - Dealroom.co
- New Venture Philanthropy Investment: Palobiopharma – FPWR Blog
3 The Press Releases
Palobiofarma, S.L., a Spanish biopharmaceutical company, has been actively advancing its clinical pipeline and forging partnerships since receiving the EIC Accelerator funding in October 2021. Key developments from their press releases and blog posts on palobiofarma.com include:Partnerships and Collaborations
Clinical Development and Technology Advancements
- PBF-999 is a first-in-class phosphodiesterase 10 (PDE10) inhibitor discovered and patented by Palobiofarma. Originally developed for oncology indications such as "cold tumors" including colon cancer, it showed appetite-reducing effects that led to repurposing it for PWS treatment. The compound is currently in Phase 2 clinical development following earlier trials focused on tolerability and safety.
- The Phase 2 study is randomized, double-blind, placebo-controlled, enrolling approximately 20 patients at University Hospital Parc Taulí in Sabadell under Dr. Assumpta Caixàs’s leadership. It aims primarily to evaluate safety/tolerability over 28 days while exploring efficacy on hyperphagia symptoms.
- In addition to PBF-999, Palobiofarma has initiated clinical development of other compounds such as:
- PBF-1650: A novel treatment targeting autoimmune diseases like NASH and psoriasis; its first-in-human study started at the University Clinic of Navarre.
- Ongoing Phase II trials also include compounds PBF-677 and PBF-680.
- Oncology portfolio includes programs like licensed drug PBF-509 (outlicensed to Novartis), plus investigational drugs PBF-1129 and others related to adenosinergic pathway modulation.
Regulatory Milestones
-Palobiofarma's candidate drug PBF-999 received Orphan Drug Designation from both the European Medicines Agency (EMA) and U.S. Food & Drug Administration (FDA). This designation recognizes its potential benefit for treating Prader-Willi Syndrome — a rare genetic disorder with limited current therapies — providing regulatory incentives like market exclusivity upon approval.Financial Developments
-In December 2021 after submitting their Step 2 proposal that led eventually to EIC Accelerator grant approval, they announced EU funding support specifically financing Phase II development of product candidate PBF-680 targeting COPD; this also offered partial financing prospects for Phase III studies highlighting confidence in their projects' quality.-In early/mid 2023/24 timeframe, Palobiofarma closed €7 million investment round led by Inveready Biotech IV fund alongside public entities Sodena and company founders aimed at completing three ongoing phase II trials including those supported by EIC Accelerator mechanisms. This financial boost strengthens their position as Spain’s biotech start-up with broadest clinical pipeline financed largely through licensing deals such as one signed with Novartis since 2015.
Team Updates & Facilities
-In February 2025 Palobiofarma opened new headquarters jointly with Medibiofarma within Navarra region’s AIN building boosting local biotech infrastructure presence which supports collaborative innovation efforts locally or internationally.In summary, since winning EIC Accelerator funding post October 6th, 2021 submission date:
Palobiofarma has accelerated multiple first-in-class therapeutic candidates into mid-stage clinical trials emphasizing rare disease treatments exemplified by prader-willi syndrome therapy development via innovative PDE10 inhibition technology alongside expansion into autoimmune indications.
Strategic partnership notably includes philanthropic investment from FPWR enabling further progress towards addressing unmet needs.
Regulatory achievements such as orphan drug designations enhance prospects toward commercialization.
Robust capital raises augment capability to advance diversified pipeline enriched by licensing collaborations demonstrating strong translational research capacity located firmly within Spain's growing biotech ecosystem.
Sources
4 The Technology Advancements
Palobiofarma, S.L., a Spanish biopharmaceutical company, has significantly advanced its capabilities and technologies since receiving the EIC Accelerator funding on October 6, 2021. The company specializes in discovering and developing innovative drugs targeting diseases with high unmet medical needs through modulation of the adenosinergic pathways.Current Capabilities
Palobiofarma has developed a diversified pipeline with six compounds in clinical development addressing various serious conditions including cancer, respiratory diseases (such as COPD and asthma), metabolic disorders, autoimmune diseases (like NASH and psoriasis), Parkinson’s disease, and rare genetic disorders such as Prader-Willi Syndrome (PWS). Their discovery platform enables them to progress multiple drug candidates into clinical phases efficiently.
Advancements Since EIC Accelerator Funding
Since their receipt of the funding:
- Clinical Development Progress: Palobiofarma successfully completed a Phase II clinical trial for PBF-680 in chronic obstructive pulmonary disease (COPD), demonstrating significant reduction in blood eosinophil count correlating with reduced inflammatory markers. Positive top-line Phase II results were announced in September 2024 confirming efficacy signals.
- Initiation of New Clinical Trials: They initiated clinical development for PBF-1650 aimed at treating autoimmune diseases like NASH and psoriasis through “first-in-human” studies conducted at University Clinic of Navarre. Additionally, they started trials for PBF-999 targeting Prader-Willi Syndrome to assess safety and efficacy related to hyperphagia — enrolling initial patients by May 2023 at University Hospital Parc Taulí under expert leadership.
- Collaborations & Funding: Palobiofarma secured additional venture philanthropy funding from the Foundation for Prader Willi Research to support ongoing Phase II trials of PBF-999. This highlights external validation and financial reinforcement aiding their progress.
Technology Improvements & New Features
The company has enhanced its therapeutic portfolio by advancing:
- A novel PDE10 inhibitor compound, PBF-999, which shows appetite-reducing effects critical for treating hyperphagia in PWS.
- An oral drug candidate PBF-680 that demonstrated immunomodulatory capabilities relevant for COPD treatment through eosinophil depletion.
Moreover, Palobiofarma is pioneering adenosine receptor antagonists such as PBF-509 developed entirely in Spain for Parkinson's disease with potential benefits on motor and cognitive symptoms beyond existing palliative options.
Market Demonstrations & Clinical Validation
Palobiofarma has actively demonstrated its technology through several ongoing or completed clinical trials involving patients:
- Completed Phase II trial results with positive endpoints achieved.
- Patient enrollment underway or progressing well in studies targeting rare genetic syndromes like Prader-Willi Syndrome.
These efforts reflect successful translation from lab research to human testing phases—a crucial step toward eventual market approval.
Intellectual Property & Publications
While specific new patents filed since 2021 are not explicitly detailed publicly within available sources, Palobiofarma holds patents on key molecules such as PDE10 inhibitors including PBF-999. Their innovative discovery platform supports continuous patentable developments. Additionally:
- Both FDA and EMA granted Orphan Drug Designation status to their compound PBF-999 for Prader-Willi Syndrome treatment—acknowledging regulatory recognition based on innovation potential.
- The company maintains active dissemination via scientific publications related to their programs though no specific whitepapers or new patent filings have been publicly announced recently.
In summary, since receiving EIC Accelerator funding in October 2021, Palobiofarma has markedly improved its technological assets by advancing multiple drug candidates into mid-stage clinical trials across diverse therapeutic areas. They have demonstrated these innovations clinically with promising data releases while securing strategic collaborations and orphan designations that bolster both regulatory pathway prospects and intellectual property standing.
Sources
(Note: URLs shortened here but full links included above per source numbering.)
5 The Partnerships and Customers
Since receiving the EIC Accelerator funding in October 2021, PALOBIOFARMA, S.L., a Spanish biotechnology company, has established and expanded several key partnerships and customer relationships that strategically position it in the biopharmaceutical market and support its technological advancement and scaling.Key Partnerships and Customers
- Foundation for Prader Willi Research (FPWR): In May 2023, PALOBIOFARMA announced a collaboration with FPWR to develop PBF-999 as a treatment for Prader Willi Syndrome (PWS). FPWR provided a venture philanthropy award in the form of a convertible loan to partially fund an ongoing Phase 2 clinical trial. This partnership supports PALOBIOFARMA’s mission to address unmet medical needs by advancing treatments for rare genetic disorders. The clinical study is conducted at the University Hospital Parc Taulí in Sabadell under Dr. Assumpta Caixàs’ leadership.
- Novartis: Since 2015, PALOBIOFARMA has had a significant licensing agreement with Novartis granting them exclusive global rights to develop, manufacture, and commercialize PBF-509—a first-in-class adenosine A2A receptor antagonist aimed at non-small cell lung cancer immunotherapy. Novartis also gained access to several Palobiofarma patents related to adenosine pathways. This collaboration brought upfront payments plus milestones and royalties supporting Palobiofarma’s financial resources for R&D.
- Idifarma: PALOBIOFARMA maintains an extended relationship with Idifarma, a Spanish Contract Development & Manufacturing Organization (CDMO), which began over multiple projects since 2012. Most recently as of around 2019 or later dates inferred from ongoing collaborations post-EIC funding, Idifarma handles full pharmaceutical development activities including formulation development, GMP manufacturing of clinical batches notably for PBF-2897 —a novel co-crystal form linked to respiratory disease treatments such as asthma and COPD currently in Phase II trials.
Nature of New Relationships
The recent partnerships focus on:
- Accelerating clinical development programs through shared expertise (FPWR supports financing rare disease trials; Idifarma provides manufacturing capabilities).
- Expanding therapeutic indications including immuno-oncology (with Novartis) and rare diseases like PWS.
These collaborations provide both financial backing via venture philanthropy or licensing arrangements alongside operational support ranging from drug formulation/manufacturing through advanced clinical trial execution.
Strategic Positioning
These relationships collectively enhance PALOBIOFARMA’s positioning by:
- Strengthening its pipeline across oncology, respiratory diseases (e.g., COPD), autoimmune conditions (NASH/psoriasis), metabolic/genetic syndromes.
- Establishing credibility via alliances with globally recognized pharma leaders like Novartis.
- Securing specialized contract manufacturing partners ensuring scalable production capacity meeting regulatory standards.
Thus enabling seamless transition from discovery phases into late-stage trials facilitating eventual commercialization.
Impact on Technology Advancement & Scaling
The partnerships contribute substantially technical benefits:
- Access to Novartis’ immuno-oncology expertise accelerates innovation around adenosine receptor modulators.
- Collaboration with FPWR targets novel applications of PDE10/A2a dual antagonists addressing hyperphagia symptoms—leveraging prior oncology data into new therapeutic areas.
- Long-term cooperation with Idifarma ensures continuous availability of cutting-edge pharmaceutical development services adaptable from early phase studies through larger scale production demands.
Overall these synergistic relationships empower PALOBIOFARMA not only financially but also technologically —supporting robust drug candidate progression while preparing infrastructure necessary for scaling up manufacturing capacity aligned with regulatory compliance requirements.
Sources
6 The Hiring and Company Growth
Palobiofarma S.L. - Recent Developments and Growth
Palobiofarma S.L., a Spanish biopharmaceutical company, has been actively involved in developing innovative treatments for serious diseases since receiving the EIC Accelerator funding in October 2021. Here are some key developments and insights into its hiring, team growth, and strategic initiatives:
Current Headcount and Team Size
There is no specific information available on the current headcount or team size of Palobiofarma. However, it is known that the company is involved in various research and development activities, which likely require a dedicated team of professionals.Current Hiring Status
While there is no explicit information on whether Palobiofarma is currently hiring, the nature of its operations suggests ongoing recruitment to support its research and development efforts. Biopharmaceutical companies typically require continuous staffing to advance their pipelines.Growth and Recent Hires
Palobiofarma's growth can be inferred from its involvement in multiple clinical trials and collaborations. For instance, in May 2023, it announced a collaboration with the Foundation for Prader-Willi Research to develop a novel treatment for Prader-Willi syndrome, indicating active expansion of its pipeline and capabilities.Key Positions and Future Impact
Although specific recent hires are not detailed, Palobiofarma's focus on clinical trials and partnerships suggests that it may be looking for experts in drug development, clinical research, and business development. New team members would help scale the company by advancing its pipeline, securing new partnerships, and driving innovation in adenosine receptor modulation.Management and Founding Team Changes
There is no recent information on changes in management or the founding team. Dr. Julio Castro is noted as the CEO, but updates on other key positions are not available.Future Scaling and Growth
Palobiofarma's future growth is expected to be driven by its robust pipeline and strategic collaborations. The company's focus on adenosine receptor modulation and its involvement in treating diseases like Prader-Willi syndrome position it for significant scaling opportunities in the biopharmaceutical sector.Sources: - Palobiofarma - Biotechnology Company
- rcus-20231231 - SEC.gov
- Palobiofarma announces a collaboration with the Foundation for Prader Willi Research
- Navarra Health Cluster
- News & Events - Palobiofarma
7 The Media Features and Publications
Overview of Palobiofarma
Palobiofarma, a Spanish biopharmaceutical company, has been actively involved in the development of innovative treatments for serious diseases. It received EIC Accelerator funding in October 2021, which has supported its research endeavors.
Media Features and Publications
While the search results do not provide specific media features or publications directly naming Palobiofarma, the company has collaborated with organizations like the Foundation for Prader-Willi Research (FPWR), which has been covered in relevant news and updates. For example, Palobiofarma's collaboration with FPWR was highlighted in the context of developing PBF-999 for Prader-Willi Syndrome.
Podcasts and Interviews
There is no specific information on podcasts or interviews featuring the team of Palobiofarma. However, the company's research and clinical trials have been discussed in various scientific forums and conferences.
Conferences and Event Participations
Palobiofarma has participated in conferences, such as the 6th International Prader-Willi Syndrome Caregivers' Conference, where its Chief Operating Officer, Santiago Figueroa Pérez, provided updates on research and clinical trials related to Prader-Willi Syndrome.
Involvement in Events
Palobiofarma is committed to advancing therapeutic developments, particularly for rare conditions like Prader-Willi Syndrome. The company's involvement in clinical trials and collaborations with foundations demonstrates its active role in these events.
Key Developments Since EIC Funding
- PBF-999 for Prader-Willi Syndrome: Palobiofarma initiated a clinical study for PBF-999, a novel PDE10 inhibitor, to treat Prader-Willi Syndrome. The study aims to evaluate the safety and efficacy of PBF-999 in reducing hyperphagia.
- PBF-680 for COPD: The company announced positive top-line results from a Phase 2 trial of PBF-680 for moderate-to-severe Chronic Obstructive Pulmonary Disease (COPD).
Sources
- News & Events - Palobiofarma https://www.palobiofarma.com/news-2/
- News & Events archivos - Palobiofarma Home https://www.palobiofarma.com/category/news-and-events/
- Palobiofarma - Biotechnology Company https://www.palobiofarma.com
- Articles by Palobiofarma - Biotech Spain https://biotech-spain.com/en/articles/palobiofarma
- New Venture Philanthropy Investment: Palobiofarma https://www.fpwr.org/blog/new-venture-philanthropy-investment-palobiofarma
- Conference Programme - IPWSO https://ipwso.org/news-events/ppcconference2024/conference-programme-2/
- Palobiofarma announces the enrolment of the first three patients in the clinical study investigating the effects of PBF-999 for the treatment of Prader-Willi Syndrome https://www.palobiofarma.com/palobiofarma-announces-the-enrolment-of-the-first-three-patients-in-the-clinical-study-investigating-the-effects-of-its-novel-compound-pbf-999-for-the-treatment-of-prader-willi-syndrome/
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