Newcastle-based biotech Newcells Biotech grabs £5M for its 3D tissue models for drug discovery
In a latest development, Newcastle-based human stem cell model specialists, Newcells Biotech, have secured a total of £5.25 million worth of funding to accelerate their growth plans in the international life sciences market.
Eyes to accelerate growth plans
The investment came from two existing backers – Mercia that invested from its Northern Venture Capital Trust (VCT) EIS funds and the North East Venture Fund (NEVF) backed by the European Regional Development Fund (ERDF). Notably, this is the second major investment pumped into the company taking its overall funding to £10 million.
The investment will be used to spearhead the biotech company’s international expansion in the USA, growing their existing commercial operations and launching innovative new products. This funding round will also help Newcells Biotech expand their growth in 3D tissue modelling for drug discovery.
CEO Dr 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 has 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, 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.”
Various treatment models in the offing
Newcells Biotech is a commercial-stage life science company exploiting its proprietary technology in stem cells (iPSC) and cell biology to build human tissue models. This pioneering modelling technology improves the ability to generate data on the safety, efficacy, and pharmacology of drugs prior to human trials.
The investment will accelerate the development of models for liver and lung conditions, the latter of which could advance the research into SARS-CoV-2 and its treatments. Furthermore, the investment will also be used to fast track the commercialisation and launch of their kidney and retina treatment models in its major North American market.