A Newcastle biotech company is set to expand its overseas presence after raising a further £750,000.
Aelius Biotech’s laboratory gut model is used to trial new drugs and foodstuffs without the need for animal testing, with its model showing how substances will be digested by the body, helping its customers to de-risk product development and improve formulations.
Now the firm has raised the six-figure sum from the North East Venture Fund, supported by the European Regional Development Fund and managed by Mercia Ventures, which it will use to expand its presence in the US and European markets and complete work on its new laboratory in Newcastle’s Blandford Square.
Aelius’s model is the only one of its type that can simulate all three stages of the digestion process, providing testing services for consumer health, pharmaceutical and ‘functional food’ companies including Huel.
The business was founded in 2018 by Dr Peter Chater, Dr Matt Wilcox and Professor Jeff Pearson based on their research at the University of Newcastle and the company received initial £1.25m funding from Mercia Ventures and the North East Venture Fund in 2023.
Since then it has increased staff from five to 15 and brought in new food clients, including a number of alternative protein and lab-grown meat manufacturers. It also doubled its revenue in 2024.
Dr Chater, the company’s CEO, said: “Over the last year we’ve demonstrated the market for novel and improved in vitro testing methods, and expanded our customer base as well as the Aelius team. Along with our move to our new premises, this latest funding will enable us to accelerate our growth in international markets, particularly in the US.”
Chris McCourt of Mercia Ventures added: “The pharmaceutical and food industries have a clear need for better laboratory models to drive faster product development. Aelius’s model was created to meet this need. The company has been growing steadily, and has attracted blue-chip clients and gained a strong foothold in the food industry. This latest funding will help it expand internationally and pursue its aim to become a global leader in its field.”
