Stem cell firm to ‘ramp up’ animal testing-free model
ANEWCASTLE life sciences company has secured a £2.35m investment to help ramp up its work on laboratory models that help avoid animal testing.
Founded in 2015, the Newcastle University spin-out Newcells Biotech is leading the way in the development of human stem cells for the drug development sector, using models which aim to reduce the reliance on animal testing.
Based at the Biosphere at Newcastle Helix, the firm has secured the seven-figure funding from existing investors, including the North East Venture Fund, supported by the European Regional Development Fund and managed by Mercia Ventures, Mercia’s own funds and Northstar Ventures – funds which will see it cement its position as a global leader in its field, as well as create new jobs.
The deal comes three years after Mercia led a £5.25m fundraise to help the business accelerate plans in the international life sciences market, and it takes the total raised by the company so far to more than £12m. Newcells’ 3D models mimic processes within the body and they are used by pharmaceutical companies across the world to test the impact of their drugs, including their efficacy and safety.
The laboratory models also provide data to support decisions, such as whether to continue development and start human trials.
The use of non-animal testing methods is likely to increase thanks to changes to the FDA guidance, which now recognise how they can be suitable replacements for animal testing. The models Newcells currently offers include the retina, kidney and lung and it also provides services to run customised tests.
The company was launched nine years ago by Dr Mike Nicholds and Professor Lyle Armstrong and now employs 49 people.
Having seen revenues rise by 56% in the last financial year, the company plans to create 10 new jobs in the year ahead.
Dr Nicholds said the latest funding round will help Newcells to boost its offering with the use of powerful imaging technology that will produce more data in a shorter time. It will also expand its marketing activity.
He said: “The support from our investors has allowed us to grow the business to the point where we now work with over 100 customers internationally including large pharma and biotech companies. This latest investment will further enhance our technology and underpin our ability to continue our rapid growth.”
Mercia was investing from the North East Venture Fund and its Northern Venture Capital Trusts.
Alex Simpson of Mercia Ventures added: “By improving the models available to scientists, Newcells is not only helping pharma companies to avoid the use of animals but also to improve the efficiency of drug development and deliver new therapies to patients.
“The company is already recognised as a pioneer in its field and the latest funding will help it to establish itself as the market leader.”
Dr Alex Buchan, investment director at Northstar Ventures, said: “We believe in the team’s ability to scale quickly as Newcells has evidenced real momentum selling into a global customers. This investment will help Newcells establish itself as a global leader in its field.”