San Diego biotech startup Gallant just raised $18 million in a Series B financing round, furthering its quest to deliver the first ready-to-use stem cell therapy through conditional U.S. Food and Drug Administration approval. But the company isn't directing those funds toward the treatment of sick humans. Rather, it's wants their high-tech research and development to cure multiple dog and cat diseases.
Health-focused investment firm Digitalis Ventures led the latest funding round, along with BOLD Capital and Hill Creek Partners. NovaQuest Capital Management joined as a new investor. This follows a successful $15 million Series A round completed in January 2024.
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NovaQuest cash infusions delivered the first human FDA-approved allogeneic stem cell therapy through Mesoblast's MESO Ryoncil. "Allogeneic" refers to cells to taken from different individuals of the same species. It has raised more than $2.5 billion across multiple ventures advancing biopharmaceuticals, buying "compelling health care companies with products and technologies aimed at helping humans and animals live healthier, longer, more productive lives."
Gallant is harvesting uterine-derived mesenchymal stem cells from healthy animals. These are self-renewing adult cells that have the ability to differentiate into various types of mesoderm-derived cells, potentially making them ideal for animal therapies. They are widely studied for their "unique cell biology and broad-ranging clinical potential" according to DVC Stem, but their use has generated a contentious debate.
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The startup views ready-to-use stem cell therapies as a new category in veterinary care, targeting the most common and underserved dog and cat diseases. "Ready-to-use" refers to stem cells that are isolated, processed and available for immediate use. In humans, this type of therapy is commonly associated with bone marrow transplants.
Cats may get the first benefit of this research through a treatment for feline chronic gingivostomatitis. Cornell's College of Veterinary Medicine describes this as a “debilitating feline dental disease marked by severe and chronic inflammation of a cat’s gingiva (gums) and mucosa.” Gallant says it is on track for FDA conditional approval in early 2026.
Unless beaten by a rival, the approval will mark the first FDA-labeled, allogeneic stem cell therapy in veterinary medicine.
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The company hopes that FDA approval heralds a pipeline of ready-to-use stem cell therapies for canine and feline osteoporosis, canine atopic dermatitis and feline chronic kidney disease. Current therapies manage these symptoms, according to the startup, but don't address underlying disease mechanisms.
“We have been continually impressed by Gallant’s team, clarity of vision, and ability to deliver.” touted Digitalis Ventures Technical Partner Cindy Cole. “They’re tackling some of the most persistent needs in animal health using their proprietary technology platform to bring truly differentiated solutions to veterinarians and pets in need.”
According to Gallant research, just 56% of veterinarians are satisfied with current treatments for canine osteoporosis. It's even worse for feline chronic gingivostomatitis, with just 8% vet satisfaction. These limp numbers suggest enormous profit potential in a world that loves its pets like children and is willing to spend whatever it takes to support their health.
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