Newcells Biotech, a UK-based stem cell technology spinout from Newcastle University, has raised £2m ($2.6m) in funding from Northstar Ventures and NVM Private Equity.
Founded in 2015, Newcells Biotech develops assays for pre-clinical disease and drug safety based on human-induced pluripotent stem cells (hiPSC), which can be used to grow several different types of cell.
The approach is intended to give researchers more physiologically accurate 2D and 3D in vivo assays.
Newcells has so far launched two hiPSC-based assays for the kidney, with one targeting kidney transplantations and another for measuring toxicity.
The cash will support further development of the kidney assays as Newcells prepares to expand its range over the next three years with products for measuring skin metabolism and retina toxicity.
Newcells builds on research by Lyle Armstrong, professor of cellular reprogramming at the Institute of Human Genetics, and Majlinda Lako, professor of stem cell science in the same institute. The spinout previously raised a six-figure sum in a 2015 Northstar-led round.
Mike Nicholds, chief executive of Newcells Biotech, said: “We are delighted with this investment from NVM and Northstar Ventures, which will enable us to increase our development capacity and accelerate the commercialisation of our unique cell-based assays for drug safety and efficacy testing.”