Combining nature’s pharmacy with the power of artificial intelligence, Kapoose Creek Bio (KC Bio) is reshaping drug discovery and bringing new hope for the treatment of depression, anxiety, and neurodegeneration.

The company is leveraging the results of collaborative research, supported by Innovation Factory’s SOPHIE (Southern Ontario Pharmaceutical & Health Innovation Ecosystem). 

SOPHIE is funded by a Government of Canada investment through the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) to help life sciences technology companies develop, test, and commercialize innovative healthcare solutions.

Through SOPHIE, KC Bio has successfully moved from discovery-stage research to a development-ready solution, positioning the company to advance its first therapeutic compound, KCB-100, toward clinical evaluation in the coming months.  

So, how does it actually work?

Unlocking the therapeutic potential of nature’s pharmacy

KC Bio uses advanced AI-powered profiling techniques to identify therapeutic compounds from its collection of over 6,000 fungi and other microbes, including unique strains foraged from its rainforest field station.

“Fifty percent of the most impactful drugs used in modern medicine were inspired by natural chemistry,” said Geordie Stewart, KC Bio’s Chief Growth Officer and a McMaster University alumnus.

“But it’s estimated that less than one percent of nature’s chemistry has been explored by science. KC Bio is going after the other 99 percent using the best modern AI tools to develop new and better medicines, and doing it faster, to treat the world’s toughest diseases.”

Accelerating the path from rainforest to medical clinic 

Key to this is KC Bio’s proprietary unEarth Rx platform, which combines phenotypic screening, functional OMICs, and AI technology to map compound behaviour, drastically reducing discovery timelines from years to just five to six months. 

This approach led to the discovery of the startup’s first two potent candidates, KCB-100 and KCB-200. Initial studies showed KCB-100 enhances key proteins essential to brain function, crosses the blood-brain barrier and engages with key signalling pathways associated with depression.

KC Bio’s early discovery work led in 2025 to collaborations with scientists at McMaster University, supported by funding from SOPHIE and Mitacs Accelerate.

SOPHIE project enhancing the value of KCB-100 program

The SOPHIE collaboration with the startup explored the efficacy of KCB-100 in animal models, while work at McMaster focused on making KCB-100 in the lab, as well as identifying new medicinal compounds from its specimen library. The research examined KCB-100’s ability to promote brain plasticity, which could help treat disorders such as depression and Alzheimer’s. 

“Over 300 million people worldwide are affected by depression. In nearly a third of those cases, people are suffering with a condition that doesn’t respond to treatment. So there’s a tremendous unmet need for effective, non-psychoactive treatments, and KCB-100 offers urgently needed hope for many people,” said Stewart. 

The project outcomes will help shape future studies as KC Bio prepares for clinical-stage research.

“From a commercialization perspective, the SOPHIE project substantially enhanced the value of the KCB-100 program by producing high-quality preclinical data that will help us engage with investors and potential partners,” said Stewart.

The SOPHIE collaboration also deepened KC Bio’s already strong ties to Hamilton’s life science ecosystem.  

In addition to Stewart, the company is led by CEO Eric Brown, a professor in McMaster’s Department of Biochemistry and Biomedical Sciences. The company’s roster and board of advisors includes many leading scientists and physicians with ties to Hamilton and the GTA. Not only that, but in 2024, the team opened its world-class Discovery Lab at McMaster Innovation Park.

Overcoming the biggest challenges in natural drug discovery

The SOPHIE project strengthens KC Bio’s position as a leader in efforts to overcome a major challenge in the search for new medicines: how to identify promising compounds in nature, and produce their natural chemistry at scale. 

The company is set to launch a new $35-million investment round to support the advancement of KCB-100. Funds will support expanding its R&D activities in Hamilton, including hiring about 15 new researchers.

“The SOPHIE project accelerated our progress at a critical stage of KCB-100’s development,” said Stewart. “We look forward to working with Innovation Factory as the program progresses closer to human clinical trials.”

Backed by strategic partnerships and a clear vision, KC Bio is well on its way to defining the future of AI-powered Drug Discovery.

Interested in learning about Innovation Factory’s SOPHIE program? Connect with us to find out more.