The US-based startup's phage platform targets pathogenic vibrios responsible early mortality syndrome (EMS) in shrimp and vibriosis in shrimp, oysters and finfish. The company is on the verge of securing regulatory approval in Mexico, where it also has its R&D headquarters, and expects is set to launch its first product in Mexico this year.
Dr Loaiza believes the potential impact of this technology is substantial.
“EMS can cause up to 85 percent mortality in hatcheries and grow-out farms. Despite its emergence in 2009, an effective solution remains elusive. This disease affects all major shrimp-producing regions, leading to an estimated $3 billion in annual losses. Farmers have attempted to mitigate its impact through improved production practices, water quality management, and disease prevention measures, but no direct cure exists,” he explains.
Antibiotic use remains limited, due to regulatory restrictions - increasing demand for alternative solutions that comply with export standards.
“Countries like Ecuador and Vietnam are particularly in need of antibiotic-free treatments. This is where our technology fits in,” Dr Loaiza notes.
From research to application
After earning a PhD in biochemistry from UCLA and Purdue, Dr Loaiza was introduced to bacteriophages while leading business development at BASF Venture Capital Americas.
“I was part of a global innovation team exploring new technologies and business models. One of my first trips took me to Baja California, where I met Dr Sergio Martinez Diaz, a leading expert in phage therapy and marine pathology with over 20 years of expertise in aquaculture production systems. At the time, BASF was exploring innovations in aquaculture, and phage technology quickly became an exciting prospect,” he recalls.
Following his departure from BASF, Dr Loaiza maintained contact with Dr Martinez Diaz. During the Covid-19 pandemic, they co-founded Hedros Bio* with the goal of developing a proprietary phage platform aimed to combating bacterial pathogens that impact productivity in aquaculture.
Product development and market strategy
Hedros Bio's first product targets EMS in shrimp, caused by Vibrio parahaemolyticus. The company is also developing treatments for general vibriosis in shrimp, finfish and oysters, as well as a solution for streptococcus infections in finfish.
“Each region has a distinct microbiome signature for EMS, requiring tailored, non-antibiotic solutions. Our phage cocktails are specifically designed to match these conditions,” says Dr Loaiza.
Participation in Hatch Blue’s accelerator programme helped Hedros Bio build strong connections with major producers in the feed and animal health industries. The company has conducted successful in vivo trials with Industry leaders and is progressing in commercial deal negotiations.
Focusing on a B2B model, Hedros Bio collaborates with feed and animal health companies while maintaining direct engagement with farmers to understand their needs and refine its product offering. Its initial market entry strategy targets hatcheries, with later expansion into grow-out operations.
Efficacy and market potential
Trials with a leading shrimp genetics partner demonstrated that Hedros Bio´s phage product reduces EMS-related mortality by up to 90 percent.
“In just 12 weeks we designed, produced and tested a phage cocktail targeting Vibrio strains endemic to the Asian market. The in vivo trials challenged SPF shrimp lines with EMS doses 10 times higher than typical outbreak levels. Our phage cocktail not only protected all shrimp lines but also eliminated the target pathogen. This level of protection translates into more profitable and sustainable production for farmers,” says Dr Loaiza.
Given the rising production costs and declining shrimp prices—such improvements in survival rates could be a game-changer.
“Many farmers need at least 50 percent survival rate to break even. If we can increase survival to 75, 85 or even 95 percent, it fundamentally reshapes their profitability,” he explains.
The financial implications are substantial. “For a hatchery producing one billion post-larvae (PL), the production run´s market value is approximately $5.5 million. An EMS outbreak with 85 percent losses would result in a $2.6 million hit. With our solution, that hatchery could see a $1.5 million profit instead,” he highlights.
Competitive advantage
Hedros Bio is not the only company developing phage-based solutions for aquaculture, but Dr Loaiza believes they hold key advantages—particularly their deep understanding of industry needs.
“Many phage companies start as tech startups and later adapt their innovations to aquaculture. In contrast, Sergio and his team have spent over 15 years working directly producers. This allows us to translate industry needs into practical solutions, our strongest competitive advantage,” he states.
Another key strength is speed. “We can identify a bacterial challenge and develop a prototype phage solution in just 12 weeks, leveraging our extensive phage library. While development cycles for conventional antimicrobial solutions, like chemicals, takes years and costs tens of millions of dollars, our platform leverages rapid isolation, characterisation, formulation design optimization and low COGS giving us a distinct edge,” he adds.
Regulatory progress and expansion plans
Hedros Bio is currently finalising regulatory submissions for its first product in Mexico, with approval expected by Q4. However, educating regulatory agencies and the public about phage technology remains a priority.
“Phages are among the oldest known viruses and play a crucial role in maintaining ecological balance. Despite their natural occurrence, introducing a new product category requires proactive engagement with regulators,” Dr Loaiza notes.
The company is raising a seed round and advancing its commercial product development projects. In 2026, it plans to launch a vibriosis phage solution, expanding beyond shrimp to finfish and oysters.
While Mexico serves as an initial test market, Hedros Bio sees Ecuador as a strategic expansion target.
“Ecuador is the world’s largest shrimp exporter, producing 1.5 million tonnes annually. That is where we need to be,” Dr Loaiza concludes.
*Hedros Bio is part of Hatch Blue's investment portfolio, but The Fish Site retains editorial independence.
