Newcells Biotech secures £1.2m follow-on investment to build customer base

Newcastle life sciences firm Newcells Biotech has raised £1.2m from existing investors Mercia Ventures, Northstar Ventures and North East Finance.

The university spin out which specialises in providing in vitro tools for testing how drugs interact with tissues says it will use the funds to build its customer base and develop partnerships with other companies with complementary products to its own. As part of the move, experienced pharma industry leader Mark Carnegie-Brown has been appointed as the company's chair.

Newcells' 3D models mimic tissues within the body and are used to test drugs under development, reducing the reliance on animal testing. With the company's tools, scientists can decide which drugs to progress to human trials - ultimately enabling them to bring drugs to the market more quickly and a lower cost.

The firm, which was founded nine years ago by Dr Mike Nicholds and professor Lyle Armstrong, currently offers models of the retina, kidney and lung and can also carry out testing for customers. Use of 3D models is said to have attracted inte