Dr. Carlo Bertozzi is a serial entrepreneur and the current CEO and Co-Founder at InCephalo. He was also behind G7 Therapeutics that was sold to Sosei Heptares in 2017. Carlo holds a PhD in Structural Biology from the University of Zurich, and an Executive MBA from IMD.
Tell us more about the two companies you have co-founded in the last years.
The first company is Acthera Therapeutics, an intelligent delivery company that encapsulates drugs. We inject the encapsulated and protected drug intravenously and only release the drugs locally at the disease, like a magic shotgun. This increases local concentration and significantly reduces systemic side effects.
Two professors had promising results and had the vision to create a company. So they approached a serial company builder in Basel. One thing led to another, and I was asked if I would like to help them build their company.
It was much fun. We incubated the idea for around 6-9 months, formalized it, and raised initial funds. That was the beginning of Acthera Therapeutics in October 2019.
I have just left Acthera by the end of 2021. Even though timing can never be perfect, we could find a new executive member and efficiently do the handover. We finally allowed me to focus on what was close to my heart. When we built our first biotech company back in 2013, we got much support from experienced and successful company builders. One of them was diagnosed and later on died from brain cancer. Since 2014 I started to look into how I can make a difference in this field.
This is how I got to know Johannes vom Berg, a group leader at the University of Zurich focusing on a very aggressive form of brain tumor called Glioblastoma. Since then, we have stayed in touch and bounced ideas off each other. Pictures slowly turned into plans, and by 2018, we started looking into building a company together.
This new company is called InCephalo, which was founded in May 2021. While looking into new treatment options for brain cancer, we realized that many medications lack enough local concentration at the disease site due to their systemic toxicity. A theme that might sound familiar as Acthera is also looking into this. This is even more dramatic for CNS diseases, as it is a different compartment separated by the blood-brain barrier.
This is why we developed our proprietary technology called compartment-locked technology, also known as CLock. CLocked biological drugs such as Fc-fused cytokines, growth factors, or antibodies, among others, can be locally applied to the CNS. They have increased retention, and once they leave the CNS, they are rapidly degraded. All aim for higher local concentration and significantly lower systemic exposure – treat the diseased tissue – spare the periphery.
Tell us about the other companies you have built.
I built my first company in chocolate consulting with my father while doing my Ph.D. We helped Swiss companies move away from palm oil to a mix of substitutes. It was more expensive, but better for the environment.
After my Ph.D., I co-founded my first biotech company in 2013 called G7 Therapeutics. We enabled G-Protein Coupled Receptors (GPCRs), inherently difficult-to-drug targets, for structure-based drug design to generate next-generation drugs. After scaling the company and signing two commercial collaborations, we joined the Sosei Heptares group, a Japanese-listed company.
I find that it takes courage to become an entrepreneur. Where does this courage come from?
You can’t achieve it all by yourself—it’s the support and people around you that help you.
Before starting G7 Therapeutics, I didn’t know I wanted to be an entrepreneur. I got an excellent offer from an established company with a clear career path into management. It could’ve been my first great job after my Ph.D., with a good package, company car, and much more.
The people around me, especially my wife, knew that the time was right to start a company, given the wealth of know-how and experience I would gain. The opportunity was too good just to let go. I was a bit naïve when I joined the founding team of G7 Therapeutics. But I think you need a bit of idealism and naivety to start, backed by the ones close to you, because it will certainly not be an easy journey.
What is the biotech startup environment like in Switzerland?
I have experienced it as incredibly good and unique. We have a great support system, from expert coaching via the InnoSuisse program to educational programs. For entrepreneurs, like the BioBusiness in Lugano or the Venture programs.
Additionally, even though I was not well connected at the start, everyone I contacted, even individuals that sold their company for over CHF200Mio, would take the time to listen, introduce me to relevant people, and much more. Also, early-stage financing has significantly improved over the last few years. And after all, we have world-class academic institutions here in Switzerland, which gives us a great advantage to access and hire highly skilled and trained individuals.
What drives you?
The answer to that has changed over the years. In the beginning, as a scientist, it was curiosity and idealism. Just like when starting your first job, it is scary but exciting at the same time. You learn and experience, meet incredible individuals that shape you – all in all, it is a fantastic journey.
But later, with the impact that my mentor had on me, I started realizing why biotech can be so much more. We can make a difference and help patients and their families.
Can you share some challenges you have faced?
Team and leadership. In the first company, we were a team with the same idea and vision. The boundaries between friends and co-workers were very intertwined because you’re working shoulder to shoulder together towards that vision.
Eventually, the company transforms from this initial incubation phase to the more established phase, where you will have to make changes. That means that people have to transition into new positions, leading to frictions.
In every company so far that I have co-founded, we’ve had some very tough discussions about personal growth and positions. That can be very challenging.
Yet somehow, you always manage.
Well, you always manage because, in the end, what matters is progress, and change is inevitable in progress.
It sounds brutal, but I believe that by being genuine and transparent, you give everyone the chance to contribute, we can move forward together or separately in a good way. In life, we make many mistakes, especially in a young company. But you pivot, and you learn fast. Just remain who you are, communicate things as they are, and don’t try to play people.
What is your view on failure?
It hurts. It hurts a lot. People always say failure is a point for you to grow personally and learn, which is true. But when you’re building a company, if you fail, it has a ripple effect on other people as well, not just yourself. I am very mindful that our employees have families. And I have been there, having to let employees go, not because of their performance but because our mother company decided to close the site.
It leaves a mark, but it is essential because it allows you to reflect and see how you can change things. You have to go through these phases of accepting failures and learning by reflecting.
Nevertheless, it hurts.
Can you share some highlights? Was the sale of G7 Therapeutics the most significant highlight?
The sale of G7 therapeutics was interesting for many reasons. We had just hired an Operations Manager to help us transform the company to the next level. But two (2) months in, we decided that combining forces with Sosei Hetpares would be more efficient for our programs, and her role changed within a brief timeframe. This created much friction.
The M&A process was challenging and meant a lot of extra hours on top of the daily business, yet at the same time, it was an excellent, simple, and thoughtful process that brought the team closer together.
But was it a highlight in my career? No, I don’t think so. The highlights are building and creating new companies and seeing them and the drug candidates progress. That’s why I’m here and why I’m still doing this.
Best and worst part of being a CEO?
One of the biggest challenges every CEO faces is motivation. Who is there to motivate you? It makes you vulnerable, and you need a support system that allows you to get the energy to make it to the next level and keep everyone else motivated.
At G7 Therapeutics, when money was tight, and things didn’t look so great, I still managed to keep the team motivated, which was very tough. Nevertheless, it’s also the most rewarding part because you share this experience with the team and see their motivation to be part of the journey.
We are in a supportive start-up environment where almost everyone wants to help you. That’s the most amazing part—the people you meet, the interactions you have, the personal growth that you can establish, all with the idea in the end to help patients and their friends and families.
Can you share some lessons learned along the way?
There are thousands! One key message is when you’re a first-time entrepreneur and CEO, when the friendship and co-worker interface is intertwined, it can lead to much friction once the company grows to the next phase.
A former co-worker can become someone who might not want to talk to anymore but is still a shareholder of your company. So be mindful of that.
What stage is InCephalo at right now?
We just recently started operation, back in September 2021. We are excited to progress our assets further towards clinical testing and building the company around our science. This goes, of course, hand-in-hand with fundraising.
Nevertheless, we can be very proud of what we achieved in the last few months. E.g., our primary asset received Orphan designation by the European regulatory authorities. Additionally, we were able to convince world-renown key opinion leaders in the field of CNS cancers and other CNS diseases, experienced company builders, investors, among others, to join our journey.
Anything else you’d like to add?
One additional piece of advice that I feel is important for entrepreneurs: Don’t be afraid to go out and talk to others – test the water, listen to others, but in the end, make your own choices.