Newcells Biotech, a British startup specialising in laboratory models that accelerate drug development and reduce the need for animal testing, has raised an additional €1.4 million in funding.
The funding has come from Mercia Ventures’ Northern Venture Capital Trusts and three regional funds – the North East Venture Fund which is managed by Mercia, the North East Innovation Fund managed by Northstar Ventures and the Finance for Business North East Fund managed by North East Finance – which are all supported by the European Regional Development Fund.
Dr Mike Nicholds, CEO of Newcells, remarked: “We believe that providing better laboratory models enables a faster, more effective drug development process which in turn accelerates the delivery of new therapies to patients. Newcells’ models have proven to predict how drugs interact with tissues and organs. We have seen an upturn in demand since the FDA removed the requirement for animal testing and expect the trend to continue as more companies rethink and adapt their processes. This latest funding demonstrates the continued confidence of our investors and will enable us to exploit the growing demand.”
Founded in 2015 by Dr Mike Nicholds and Professor Lyle Armstrong as a spin-out from the University of Newcastle, Newcells Biotech uses advanced 3D models to mimic human tissue. These models are utilised by pharmaceutical companies to test drugs under development, delivering critical data that informs decisions about which drugs should progress to human trials.
By eliminating the reliance on animal testing, Newcells offers a faster, more cost-effective, and accurate method to bring new therapies to market.
The company’s portfolio includes 3D models for the retina, kidney, and lung, and it also offers testing services for its clients. The demand for such models has surged following the US Food and Drug Administration’s (FDA) decision to remove the requirement for new drugs to be tested on animals two years ago. Research has highlighted the limitations of animal testing, with around 90% of drugs deemed safe in animals failing to perform as expected in humans.
Victoria Wiesener, of Mercia Ventures, commented: “Newcells has a great product and a strong team, and has the potential to become a leader in its field. The past year has been tough for the pharmaceutical industry as economic uncertainty has affected investment, resulting in fewer drugs under development. Newcells has navigated the changing markets effectively, while also improving efficiency and strengthening its commercial team. It is now well positioned for growth as activity levels recover and more companies make the decision to move away from animal testing.”
Alex Buchan, of Northstar Ventures, added: “We have been closely involved with Newcells since its founding and are proud of their significant progress to date. Their products have evolved into industry-leading solutions, designed to streamline and optimise drug development. The quality of their client base and reputation in the industry underpins their enormous potential, which we believe is beginning to be realised.”
The company employs 42 staff and serves pharmaceutical clients worldwide. As part of the funding round, Dr Mark Carnegie-Brown, a pharma industry veteran with over 30 years of leadership experience, has been appointed as Chair.
Read the orginal article: https://www.eu-startups.com/2024/12/newcastle-based-newcells-biotech-raises-e1-4-million-to-advance-lab-models-for-drug-development/
