The MTPConnect Podcast

Real Brain Technology is Powering Up Drug Discovery and Going Global

MTPConnect Season 7 Episode 203

Tessara Therapeutics, a pioneering biotech start-up based in Melbourne, has developed a platform which creates 3D human brain models using stem cells.

Its RealBrain technology generates reproducible, scalable micro-tissues that mimic the complexity of the human brain. Ready to accelerate neural drug discovery – without using animal models.

From working with CSIRO’s Kickstart program, receiving a CRC-P grant with Xylo Bio, and the University of Sydney  to develop neuroplastogens to research the treatment of addiction disorders and inking a new agreement with Swiss based InSphero, Tessara Therapeutics is helping to unlock human neuroscience. 

Joining us on the MTPConnect podcast is Tessara Therapeutics CEO and Managing Director, Dr Christos Papadimitriou to tell us more about their innovation to accelerate neural drug discovery and their plans to take this technology global.

Natalie Vella:

This is the MTP Connect podcast, connecting you with the people behind the life-saving innovations driving Australia's growing life sciences sector from bench to bedside for better health and well-being. MTP Connect acknowledges the traditional owners of country that this podcast is recorded on and recognises that Aboriginal and Torres Strait Islander peoples are Australia's first storytellers and the holders of first science knowledge.

Caroline Duell:

Welcome to the podcast. I'm Caroline Duell. Today we're catching up with Tessara Therapeutics, a pioneering biotech startup based in Melbourne, which has developed a platform to create 3D human brain models using stem cells. Its real brain technology generates reproducible, scalable microtissues that mimic the complexity of the human brain, ready to accelerate neural drug discovery without using animal models. From working with CSIRO's Kickstart program, receiving a CRC-P grant with Xylo and the University of Sydney to research the treatment of addiction disorders, and inking a new agreement with a Swiss-based Insphero, Tessara Therapeutics is helping to unlock human neuroscience. Here to tell us more about their global ambitions is Tessara Therapeutics CEO and Managing Director, Dr. Christos Papadimitriou. Welcome to the podcast, Christos. It's great to have you on the show.

Dr Christos Papadimitriou:

Thanks for inviting me.

Caroline Duell:

Tell us a little bit about your background.

Dr Christos Papadimitriou:

So, yeah, I was born and raised in Greece. I guess the the main driver for me to go into uh life sciences in general and research was my dad uh had a form of uh degenerative disease, and that was the inspiration for me to to go into research in life sciences and um in particular regenerative therapy uh and regenerative medicine, which is uh the a part of medicine that that really tries to understand how we can treat or replace damaged tissue to have a healthier life. So you're talking about diseases like Alzheimer's that's Alzheimer's, uh like Parkinson's disease, but also um uh accidents like spinal cord accidents, that they also form some type of um, let's say a barrier of regeneration, given that the neural tissue is uh it cannot really regenerate. So uh working with uh smart tools that later in my career they would be fundamental for what we do now at Tesara, uh tools like the use of biomaterials to modulate the immune system or to modulate how uh neurons and are behaving and how they are regenerated or not, that was fundamental in my career.

Caroline Duell:

And you mix that with biomedical engineering, and you've got a very interesting skill set, Christos, in terms of this new I would call regenerative medicine, it's a new frontier.

Dr Christos Papadimitriou:

It is a combination, my background of of medical studies as well, and and engineering, which is tissue engineering as well, that um teach me or taught me how to um uh how to manipulate uh uh human cells and make them have the uh the differentiation or the progression that someone wants to uh to drive the cells towards, but also uh electronics and um even uh computer sciences like coding and developing algorithms that have also been very influential in my career as well.

Caroline Duell:

So this is you know big dreams and big ambitions, really. This passion has has brought you to Tesara Therapeutics. Tell us about the mission of this company that you're leading at the moment.

Dr Christos Papadimitriou:

We established the Sarah Therapeutics with um uh two other co-founders, Christopher Boyer and Christian uh Tuli. And the mission of the company um is to develop a platform that can really uh solve several existing problems when it comes to to therapies for for neuroscience. So the the platform is based on um lab-grown human neural tissue. So um uh we use human neural stem cells and biomaterials, uh, talking to tissue engineering before making a reference. So when we mix these two components together, we uh basically trick the cells, the the human neural uh stem cells, to believe that they are inside the human brain. And this uh this technology helps them to um to start producing proteins and all the uh microenvironment necessary uh to build actual neural tissue. These are what we call human mini-brains. Of course, these neural microtissues they do not correspond to the whole brain function, it is uh just a model that uh basically correlates to the cortical region of the human brain. The brain has many different parts for creating uh hormones, for uh specific memory parts, for vision. It's it's such a complex organ. Um, what we're trying to do with this with this technology that we've developed uh to sell a therapeutics is to um create a very good um analog or test bed for for therapies when it comes to to neuroscience. And um yeah, neurological diseases uh like Alzheimer's, Parkinson's and others have been impacting millions of people. As a matter of fact, I in a in uh in a study that was published uh in Lancet in 2024, um neurological conditions was now the leading cause of disability and ill health um globally, um more than um um cancer and and more than uh cardiovascular uh diseases. Over the last um uh 30 years or so, um more than 96 percent of drugs uh fail in clinical trials uh when it comes to neurodegenerative diseases and neuroscience therapeutics. And uh more than 70 percent of this failure, um, it really goes back to the early drug discovery. Uh the literature but also practical experience points to the fact that when researchers are using not the right models to discover and to validate the targets, that leads to um an incorrect decision of the assets that they can um then continue the drug development pathway. So if someone makes a mistake at the early stages of drug discovery or it's not the right asset, this mistake can then um progress and can lead to significant failures down the track. So, what we're trying to do with our technology is to um uh develop new insights. So we have a technology that comes much closer to the human um physiology and uh how a disease may develop in a in a human setup. So we are able to apply this technology at the earlier stages of drug development and basically identify the the acids, but hopefully also later in clinical trials. So we have these micro tissues live in a uh in a 96-well plane, it has multiple wells, so you can imagine one uh just for the sake of this discussion, I will call them mini-brains, one mini-brain in every well where um uh they grow inside a specific um uh formulation of media to provide nutrients. And in this well, we are also um adding the uh the therapeutic compounds, the experimental treatments. And these treatments they have an effect on how these micro tissues are growing, how the cells and the neurons are changing, and then we can um evaluate uh what is the effect of this treatment when it comes to the neural networking, to what is their effect on neurotransmission and several other parameters. So, with one tool, our mini-brains, we can develop an abundance of data. We can what is the effect of the drug in the human neurons, any combination of um of brain cells.

Caroline Duell:

And what are you calling this technology?

Dr Christos Papadimitriou:

It's it's actually the real brain technology that we call it.

Caroline Duell:

So, how many of these you know, mini real brains can you manufacture, you know, in a day? Like, are we talking thousands?

Dr Christos Papadimitriou:

So, what we call now uh mini-brain, many people can also relate to um human brain organoids, uh, that it's it's a form of organotypic culture, again, in a 3D format, that they're trying to again replicate the uh the brain as an as an organ. And this technology has been uh has been used for hundreds of labs around the world uh for a for more than a decade, but there are some significant limitations with uh technologies like that in an academic setup. And one of these limitations is the scalability. Um, there are several limitations in creating such organotypic cultures at scale, that has been a limiting factor for their adoption as well. When you have um an adoption from the whole pharmaceutical industry, you need to make sure that uh your, I call it a product, this this technology, it is very important to be consistent but also scalable to ensure that the the data that coming out of this technology are the same. No matter where you are in the world, no matter who is doing the assay, it needs to have this type of um standards when it comes to reproducibility and scalability. And this is exactly where um what are the uh the barriers that we are uh let's say breaking with our technology. Um because of the technology that we have been using uh with with the scaffold, we have the ability to really create thousands of these uh structures, of these human relevant structures every day. Um, so it it was a very um a very long RD process that we had at the SARA therapeutics to make this technology um compatible with automation. So we use robotic automation that can really uh create more than hundreds of these uh micro tissues in every two to three minutes, and we can generate thousands of these every day if necessary, and that allows us to really develop a technology that can be adopted at a global scale for the pharmaceutical industry, and this is what um we want what we aspire to do as the cellar therapeutics. We're trying to develop a technology that sets the gold standards when it comes to testing in neuroscience therapeutics, um, because another um benefit that we can provide with our technology, if it is um uh predictive but also scalable, we can uh set the benchmarks of different therapeutics and understand how new um uh experimental drugs perform against historical drugs that they have been in the market or not. And that can be very valuable uh for the neuroscience uh uh field in general.

Caroline Duell:

Where do the stem cells come from, the neural stem cells?

Dr Christos Papadimitriou:

Yeah, they are coming from um either uh healthy donors or uh donors that they have a disease. Uh Tessara is not the responsible company to retrieve these cells, although we we can if we want to. There are some specific specialized companies that we are working with that um they do this as a job to have all the um ethics and the processes approved from the FDA or the uh regulatory framework of every jurisdiction to collect um uh cells either from uh from the skin or from blood, that then they can turn into neural stem cells, and then we we use these neural stem cells to uh yeah generate our micro tissue. And that uh allows us to um to go one step closer to the actual human clinical trials because what we're also um trying to do is to um collect um um cells from patients that have um different forms of Alzheimer's disease, I i and this is a very simple term I'm using um from different genetic backgrounds and different and sexes to try and replicate what the clinical trial is uh uh in a normal clinical trial setup with patients, but in the lab. So by collecting cells from individuals with different genetic backgrounds, we can somehow mimic this clinical trial in this, as we said, the clinical trial in this concept, where we create these uh mini-brains um from uh neurons that they're coming from individuals that they have different forms of Alzheimer's disease.

Caroline Duell:

And are you working with any drug discovery companies in Australia?

Dr Christos Papadimitriou:

We're working with um companies that develop neurological assets in Australia and also in the United States mostly. Um, so yes, there are um um uh listed companies and unlisted companies uh that uh are using our technology to de-risk their drug development pathway. Uh because it's not only the de-risking by collecting human relevant insight, but also trying to limit the use of animal models when they are not necessary in order to inform your uh readouts, can help companies accelerate their drug development path. So a relatively simple study can take two to three years when using animal models when it comes to breeding the animals, to get the information from the animal models and all the processes involved, and it's very expensive. And what it takes two years to complete in animal models, we can do with our technology in a couple of months. So, and at a fraction of the cost. So companies are using us already to de-risk and accelerate their drug development pathway.

Caroline Duell:

So tell us about the US market and obviously with customers in the US, what's been the response, uh, interest there in your technology? And how often do you have to go to the States to meet with your customers and potential customers?

Dr Christos Papadimitriou:

Uh, we're a relatively new company, so we we started uh operations in 2020, but I think um we had a very good trajectory since it took us from concept to revenue about four years. So we started generating revenue in um 2024. So we're still a new company when it comes to commercialization and we're still expanding. We have a small number of customers, important ones. And we have seen a significant change in in the demand of our technology um after the FDA modernization act, where they um uh passed uh uh a law that they ended a blanket rule that um no company, no sponsor could start clinical trials without having animal models. So that was a mandate. This mandate doesn't exist anymore, which means companies can initiate clinical trials, testing uh a therapeutic um candidate in humans even without using animal models. And um after this uh this change in the in the legislation, there are several other changes that have happened, and the FDA has uh responded into these changes um um quickly, I would say. And very recently, uh just uh in April this year, um they developed a specific roadmap for phasing out the use of animal models in in general. So, what FDA is trying to do is in a few years' time, the use of animal models would be an exception rather than the rule. Uh, because new technologies like ours, they're more human-relevant, more predictive, and they can assess many of information that we get from animal models uh faster and more reliably and cheaper as well. So we're trying as a company to create stronger awareness uh of what we do in the US. As I mentioned, we are a small company, and unfortunately, Sara and many, many other companies are um well underfunded. Um, well underfunded. So we are trying to leverage um bigger partners um and run as lean operations as possible here in Australia in order to raise awareness of our products. So, as part of these um uh of these strategies are recent agreement and collaboration with uh nSphero , which is a Swiss-based company. Yeah, um and InSphero is is is a remarkable company and uh with a remarkable CEO, I consider them as the architects of human relevant in vitro cultures. Uh they they started with um uh liver, human micro tissues, and then they uh developed um uh cancer models uh and and and other models as well that really um help the risk development programs, uh like Tesara, uh, for example. And uh InSfiro is is the largest uh company with specialization in scalable um 3D human relevant in vitro technology. So working with a company like InSfiro um helps us to um to have a bigger footprint than what we have because we work as partners and we have technologies that can complement each other.

Caroline Duell:

Well, congratulations on that distribution agreement with InSfiro. That is major news for you. And watch this space, I think. Um another um interesting announcement that from late last year was that you were part of a Cooperative Research Centers projects grant with Silo and the University of Sydney. That's a major project that you you're part of or leading.

Dr Christos Papadimitriou:

It is indeed something uh very very close to my heart because again, we are creating new new science there. It's um something that, in my knowledge, hasn't been done before uh using organotypic cultures to uh to get into this space. And to be more specific, what um the grant that we managed to get together with Silo and the University of Sydney is to develop um a framework of um and a pipeline where we uh uh Tesara is screening a list of compounds um originally sourced from xylo that they have uh that they have developed through their proprietary technologies, and then develop um new models of um drug abuse and specifically methamphetamine abuse. So we are entering um the stage of like mental health um sector, uh, so to develop an in vitro model to assess um addiction and to assess how um new uh new therapeutic candidates can uh can prevent addiction or can be used to help people with addiction when it comes to uh uh yeah illegal drugs like methamphetamine. So we are bringing together expertise um like our technology that, as I mentioned, we develop a a whole new kind of of a disease model for this program. Uh the knowledge of um the and the expertise of silo developing some novel neuroplastogens, and I will explain later what that is, and also the expertise of the University of Um of Sydney, that they have developed some animal models as well to test the the reactions and the behavioral components that of course we cannot test with with our technology, and that can be used as uh let's say a uh a validation of our findings. So, what we are trying to do in these um uh in this ground is to identify therapeutic components that can change the neural networking of the human brain. So we want to increase neural plasticity in the human brain and create new connections because the research so far suggests that by by doing that, you are um helping a specific set of individuals to be um uh to accept new new new treatments and new learnings as well. So um, together with um specific programs uh designed to help people with addiction and with administration of such uh therapeutic compounds, um, we really believe that we can make a significant difference in the life of this um of these people and change their uh addiction profile. And I have to say, I'm not expert in that field, so I apologize in advance if I say something um inappropriate there. Um, but the good thing about the Sarah is that um um we have already developed some really, really good and promising results that we've never seen before, which indicates that we can really see this effect of addiction um that we know from humans when we expose our technology to uh to to drugs like methamphetamine, which is amazing.

Caroline Duell:

It it's so you can see it's sort of in the test tube, you can see this interaction of addiction or the cells, you know, that we have to do it.

Dr Christos Papadimitriou:

So we can see we can already see um elements of what now it happens in the in the human networking, how the neurons are dhammased and they decrease their ability to communicate with other neurons.

Caroline Duell:

Really?

Dr Christos Papadimitriou:

Um, and yeah, it is something that hasn't been seen before, in in my knowledge, and we're really, really excited about this framework. And as part of the CRCP program, and I guess that's important for our industry, is that after the program we could use this this pipeline, this framework that we develop for for all the other companies as well. So it is really a technology that hopefully can elevate the the translation of Australian research and technologies to to help this program um and the problem which could be expanded to to it could be expanded to opioid crisis and and other issues when it comes to um uh uh to to problems in relation to addiction.

Caroline Duell:

Yes, and incredible. And you know, as we know, the the issue of drug addiction from everything from fentanyl to methamphetamine is totally changing communities around the world. Can you just explain what are neuroplastigens?

Dr Christos Papadimitriou:

Yeah, it um the neuroplastigens is is exactly what I mentioned before. There are specific classes of compounds that their main uh job would be to change the the neural networking, to promote the plasticity inside the brain, to to create new connections between neurons that they are functional as well. And uh together with this, there are several changes in the human brain because that allows uh the brain to learn faster, better. In some cases, it can help change the uh neuroinflammatory profile as well by using therapeutic candidates that can uh again help the addict brain to perform better in combination with other behavioral treatments. And again, I'm not expert into all the treatments when it comes to addiction, but in my in my understanding, and what we want to achieve is, as I mentioned, these therapeutic compounds to be in addition to um specific behavioral training and and and um guidance that these people will get from other services, not just by the uh the use of uh therapeutic compounds.

Caroline Duell:

And how long is this CRC project for? Is it a couple of years?

Dr Christos Papadimitriou:

For three years. It is for three years, yeah.

Caroline Duell:

Absolutely fascinating. Looking into the science of addiction at a test tube level, at that neuron level, must be mind-blowing.

Dr Christos Papadimitriou:

It is, it is, and and soon we we plan to to launch uh ready-to-use uh platforms or plates for mini-brains. What that means is that so far all the work and revenue we have generated is by providing in-house drug screening services to uh to companies. But now we're developing uh a program or a product that we can um distribute this type of plates, 96 well plates or 34 well plates, with the mini-brains inside that they're leaving. And and companies can will go in the near future in our website or through our distributors to order these mini-brains so they can have them in their lab and do a variety of testing. And we really help that this will um uh we think that this will help the translation of research in Australia but also um globally and uh help neuroscience innovators everywhere to progress their program because if we want to have um a transformational change into uh the development of therapeutics for neurodegenerative diseases, we need to solve this problem collectively. So we can use all the brain power in the world uh available, and many smart people in the US, in Europe, in Australia uh to use the best tools and find problems and therapies for neurodegenerative diseases. So we we want to create this enabling platform to raise the the standards and the successes of clinical trials.

Caroline Duell:

How do you transport this material? Um, does it have to be refrigerated? How long is the lifespan of these mini brains in this sort of manufacturing device?

Dr Christos Papadimitriou:

We are at the last stages of RD, and I cannot reveal all the information, but uh most likely we will not need uh uh cold chain solutions to transport these micro tissues, which makes it very simple for us and inexpensive as well for for the customers of our uh technology. And once the customers um receive our micro tissues, they can stay in their labs for months and months to do to studies chronic exposure uh uh studies and assess the uh uh yeah how effective their um experimental drugs are. Uh but also what we are very excited about, and I'm again I'm going even further in the future, what's what we want to do, having the ability to create such uh so many micro tissues and literally have millions of data points, is we want to use um, and I'm I'm using the term vaguely because there are many different systems that can be used. Uh, we want to use artificial intelligence AI to Combine an abundance of data from safety, toxicity, electrophysiology, and others to create a very strong predictive model that it's going to work together with our mini-brains. So we want to have the best input possible from a technology like our mini-brains and using the right um data science and artificial intelligence to combine all this data that we can get and uh really help companies and the industry to uh have a transformational growth when it comes to the development of uh therapeutic candidates that they really have an effect and uh potentially can help millions of people with um neurodegenerative diseases.

Caroline Duell:

And all manufactured in Parkville?

Dr Christos Papadimitriou:

Uh yes, that's right. We are based at Jumar since December 2023. Um, yeah, and we manufacture that um here in Parkville.

Caroline Duell:

It's a great story, Christos. And you worked early on in your product development through the CSIRO Kickstart program. So, what would you say about companies thinking about partnering or working with some of those types of incubator programs? How helpful was that?

Dr Christos Papadimitriou:

Well, I can uh I can only say that without the Kickstarter, perhaps we wouldn't be here today. Uh working with CSIRO and uh and the team there in the uh uh biomaterials team um and the biology team and the kickstart program was fundamental because the the company just started with with a with a concept and an idea that we shared with CSIRO, and they made this idea a reality, working together to develop our our biomaterials, composition of matter, and and anything else was was fundamental, and then to develop the the processes that these biomaterials can be um synthesized at scale. This is really uh fundamental to have consistent manufacturing at scale and CSIRO was uh yeah, critical for that, critical. And the Kickstarter program helped us to do that because we literally had no money. I was not working, I quit my job. Uh the job I had, I said, okay, this is it. I'm making the seller therapeutics, is going to happen or not. So we're very fortunate that we found an investor that wrote us this um 50,000 check, let's say, in the beginning, and we used that directly for the CSIRO Kickstarter program to double that that money and yeah, uh create or materials. Yes, that's that's how it started.

Caroline Duell:

Very much an Australian-born innovation developed here and manufactured here, which is a fantastic story because you are a startup, and as you've said, it is very difficult to get funding, it's very difficult to get investment at that early stage. Just a fantastic result for you.

Dr Christos Papadimitriou:

I I think it is, and it's a good Australian story and technology that can really go global. We had minimal support from um government initiatives or state initiatives in order to do that, no matter how much we have been we have been trying. And our our one of our um goals as well is to be a financial contributor to the economy here in the ecosystem. And to be honest, this has not been recognized almost at all, or in at very, very minimal uh states. And um, yes, I would really like to see initiatives that they help um companies like the SARA because we are not the only ones, because um uh like the Tessara, many other innovators at Jumar in Victoria and everywhere in Australia can can really help um create new innovations that Australia can be proud of, and we can have a significant part of the common economy to be based in these type of innovations.

Caroline Duell:

Do you feel like investors in the US are are more likely to go for a new experimental type technology? They're just more of a first mover on that science. Are we a bit cautious in Australia?

Dr Christos Papadimitriou:

In my humble opinion, yes. Very, very cautious. We do not celebrate risk, I think. And I think we we can learn more from the um the US mentality that they they celebrate risk, they celebrate uh failure in some cases, um, because that is the mother of all innovations. And we can see how innovation now is the driving force of economy in in the US, from the services businesses, the software, artificial intelligence, and several other components. Innovation is what is driving economic growth, in my opinion. Um, and I think Australia really needs to think hard on that and create innovations with competitive advantages and uniqueness to do that. And we have seen also examples of Australian innovations that they have not been recognized in Australia, but they did get recognized in the US and now they're part of a of another economy. And although in newspapers and articles we we call them Australian innovations, they are not anymore.

Caroline Duell:

Well, they're born here, but then they leave. And they take you know the IP and the and the job opportunities as well.

Dr Christos Papadimitriou:

Exactly. Yeah.

Caroline Duell:

It's a really interesting problem, I think, that that the sector's facing in terms of employment for uh for scientists and for um biomedical engineers. Obviously, there's a huge opportunity there around this type of technology.

Dr Christos Papadimitriou:

Absolutely. There is a huge opportunity, and CSIRO also, again, uh it's a fantastic organization. Um, they created um a report a couple of years ago when it comes to the development of non-animal technologies. Uh, and we identified that the growth opportunity and the financial opportunity of Australia alone in these technologies alone can be more than 1.5 billion of growth. So we are talking a huge opportunity here. Um, new technologies, uh uh, new skills that they can be developed uh from companies like Tessara. Tessara is a is a tiny company. Uh it's it's about eight people that we have. Um we we need more people, but we also need more capital to employ more people. So we are trying to run a very lean operation and try to achieve as much as possible. But hopefully, um everything that we discussed, the changes in the regulatory framework, the new innovation that we develop with the ready-to-use plates and the artificial intelligence components can help us grow our business through revenues, but also becoming more attractive to uh domestic and US investors um to help us grow the business and um create more uh uh uh skilled uh experts that can help the Australia to grow as well.

Caroline Duell:

Well, it sounds like definitely the right time for your real brain technology and exciting times ahead. We'll be watching with interest, Christos, and we wish you and the team all the best at Tessara Therapeutics on developing this amazing technology.

Dr Christos Papadimitriou:

Thank you, Caroline. I'm very um grateful for this opportunity. MTP Connect has been doing also a fantastic work um managing development grants and opportunities that they provide to biotech companies. And I think it's a very strong contributor to creating opportunities for Australian biotechs to thrive and grow and again uh bounce above their weight and be become globally competitive. So thank you for everything you do as well.

Caroline Duell:

That was to Tessara Therapeutics CEO and managing director, Dr. Christos Papadimitriou, discussing their real-brain technology. You've been listening to the MTP Connect Podcast. This podcast is produced on the lands of the Wurundjeri people here in Nam, Melbourne. Thanks for listening to the show. If you love what you've heard, share our podcast and follow us to more. Until next time.