Newcastle, UK – Aelius Biotech, the innovative UK biotech company pioneering a fully integrated laboratory gut model for testing new drugs and food formulations without animal testing, has raised an additional £750,000. The latest funding round was led by the North East Venture Fund, with support from the European Regional Development Fund (ERDF), and is managed by Mercia Ventures.
Revolutionary Gut Model for Safer Testing Aelius Biotech’s proprietary technology uniquely simulates all three critical stages of digestion – transit through the gut, interaction with a cell‑compatible mucus layer, and nutrient absorption. This breakthrough stands apart from conventional in vitro models that typically assess only a single phase, offering pharmaceutical, consumer health, and functional food companies a comprehensive tool to de‑risk product development and optimize formulations.
Fueling Expansion and Innovation The new £750,000 investment will be pivotal for Aelius Biotech’s strategic growth. The funding is earmarked to bolster the company’s expansion into the US and broader European markets, as well as to complete development of its state‑of‑the‑art laboratory facility in Newcastle’s Blandford Square. “Over the past year, we have demonstrated strong market demand for advanced in vitro testing methods,” said Dr Peter Chater, CEO of Aelius Biotech. “This injection of capital will accelerate our international expansion and enable us to scale our operations to meet growing global needs.”
Building on a Strong Foundation Founded in 2018 by Dr Peter Chater, Dr Matt Wilcox, and Professor Jeff Pearson from the University of Newcastle, Aelius Biotech initially raised £1.25 million from Mercia Ventures and the North East Venture Fund in 2023. Since then, the company has expanded its team from five to 15 employees and secured a diverse portfolio of clients – including industry leaders such as Huel, as well as several innovative alternative protein and lab‑grown meat manufacturers. Revenue doubled in 2024, underscoring the impact of its technology in transforming product development pipelines.
Investor Endorsement and Collaborative Support Chris McCourt of Mercia Ventures commented, “The pharmaceutical and food industries are in urgent need of reliable, animal‑free testing solutions. Aelius Biotech’s novel approach fills a critical gap in the market. This latest funding round not only validates their technology but also positions them well to become a global leader in in vitro testing.” The North East Venture Fund, part of a program funded by the ERDF and administered by local authorities in North East England, plays a key role in stimulating technological innovation and economic growth in the region. Its support of Aelius Biotech aligns with its mission to foster new technologies and create high‑value jobs.
A Vision for a Sustainable Future Aelius Biotech’s integrated gut model is set to revolutionize how new therapeutics and food products are developed by providing companies with a robust, ethical, and cost‑effective alternative to animal testing. As the company scales its operations internationally, the combined support from strategic investors and government‑backed funds reinforces the UK’s position as a global hub for innovative biotechnology.
