A Newcastle life sciences company is aiming to ramp up growth after securing a £5.25m funding package.
Founded in 2015 and based at The Biosphere building at Helix, Newcells is leading the way in the development of human stem cells for the drug development sector.
The Newcastle University spin-out founded by Dr Mike Nicholds has secured the multimillion-pound sum from a range of investors keen to aid the firm in its strategy to accelerate growth plans in the international life sciences market.
The funding comes from sources including Mercia Asset Management and the North East Innovation Fund, which is managed by NorthStar Ventures.
Newcells Biotech will now expand its growth in 3D tissue models for drug discovery, using the funds to drive forward plans for international expansion in the US, grow its existing commercial operations and launching innovative new products.
The investment is the second major cash injection into the business, which has received £10m worth of funding over the last five years.
It is now at a commercial-stage exploiting its trademark technology in stem cells and 3D tissues, used to build human tissue models.
The modelling technology improves the ability to generate data on the safety and effectiveness of drugs before their first human trials.
Most Read
This investment will accelerate the development of models for liver and lung conditions, and the latter could advance the research into and treatment available for SARS-Cov-2. Newcells will also fast track the commercialisation and launch of its kidney and retina 3D treatment models in the US.
Chief executive officer Mike Nicholds said: “Over the last two years Newcells has made great progress in bringing innovative products and services to market that have delivered value to our global pharmaceutical customers.
“Whether it be in understanding how new drugs interact with the kidney or the retina, our scientists have produced data that has helped lower the risk of early drug discovery projects. The input and support of Mercia and NorthStar have been invaluable in driving forward the business. Our vision is to bring the best in vitro biology to market, improving the productivity of drug discovery and development."
Tim Levett, of Mercia Asset Management, said: “Since our first investment the team at Newcells have made great strides forward both in the development of new organoids and in winning contracts with major global pharmaceutical and biotech companies. Our substantial investment will fund the resources that will enable Newcells to accelerate growth and become a global market leader in four high growth areas.”
Alex Buchan, investment director, NorthStar Ventures, said, “We’re delighted to continue to support Newcells with developing their cutting-edge products and services. We’ve been impressed with the vision and drive of the team and look forward to the continuing expansion and scale up of this vital work.”
Newcells Biotech is one of a raft of scientific pioneers – predominantly university spin-outs – now based within The Biosphere building at Newcastle Helix.
Tenants within the Biosphere include AMLo Biosciences, MDNA Life Sciences, NewChem Technologies Ltd and the NHS integrated Covid Hub’s Innovation Lab.
The life sciences building forms part of the 24-acre Helix science quarter, the partnership between Newcastle City Council, Legal & General and Newcastle University, bringing together industry leaders, businesses, and top researchers to form an internationally renowned innovation cluster.