StemInov secures €10.6 million to advance mesenchymal stem cell therapy for severe pneumonia
French biopharmaceutical company StemInov has closed a €10.6 million financing round to support the industrialisation of its stem cell platform and prepare for Phase I/IIa clinical trials targeting severe pneumonia complications. The Nancy and Illkirch-Graffenstaden-based company, which specialises in mesenchymal stem cell (MSC) therapies for inflammatory and autoimmune diseases, expects to initiate patient recruitment in the fourth quarter of 2026.
Addressing critical gaps in intensive care treatment
The funding will enable StemInov to scale up its GMP-compliant bioproduction platform and obtain regulatory approval for clinical trials of WhartSep®, its lead therapeutic candidate derived from umbilical cord Wharton’s jelly. The therapy targets patients with severe pneumonia progressing towards septic shock or acute respiratory distress syndrome (ARDS), conditions that currently lack specific treatment options.
Severe infections remain among the leading causes of mortality in intensive care settings, ranking as the tenth leading cause of death in developed countries. According to WHO data cited in the announcement, one person dies every three to four seconds from complications such as ARDS or septic shock, with mortality rates reaching 40% amongst hospitalised patients.
Triple mechanism of action distinguishes therapeutic approach
WhartSep employs umbilical cord-derived MSCs that demonstrate anti-inflammatory, regenerative and antibacterial properties. “For the first time, a cell-based therapy derived from Wharton’s jelly combines three synergistic actions – modulating inflammation, protecting and repairing damaged organs, particularly the lungs, and exerting antibacterial activity,” said Danièle Bensoussan, co-founder of StemInov.
The therapy is manufactured using a proprietary process and supplied as cryo-preserved, ready-to-use frozen doses that can be administered immediately following thawing. This format offers practical advantages for acute care settings where rapid intervention is essential.
Dual positioning enhances market strategy
Beyond developing its own therapeutic pipeline, StemInov operates a bioproduction facility at the Illkirch innovation campus in Alsace that provides manufacturing services to industrial and academic partners. This dual model positions the company as both a therapeutic developer and biomanufacturing provider within the expanding cell therapy sector.
The global mesenchymal stem cell market was valued at US$3 billion in 2023 and is projected to exceed US$9.4 billion by 2032, representing a compound annual growth rate of 13.3%, according to estimates from Straits Research cited in the announcement.
Investor consortium supports clinical development
The financing round included participation from Angels Santé, Business Angels des Grandes Écoles, Alsace Business Angels, Codexial, Finovam Gestion and Groupe ILP, alongside public funding from France 2030 via Bpifrance and the European Regional Development Fund. “Their confidence marks a major milestone in our mission: reducing mortality in patients admitted to intensive care for severe pneumonia, where no therapeutic option exists today,” said Julie Hutin, CEO of StemInov. The company plans to initiate a Series A fundraising round in 2026 following completion of its Phase I/IIa study.
Founded in 2019 as a spin-off from Nancy University Hospital and the University of Lorraine, StemInov previously raised close to €1 million in 2020 and secured €3.8 million in 2024 through the France 2030 Biotherapies and Bioproduction Innovation programme.
For more information, visit: www.steminov.com
