Funding boost for Biotech Company

The Journal

Monday 15th February

 

A Biotechnology firm which has developed a product to reduce the number of scientific tests carried out on animals and humans believes it can achieve a £30m turnover after receiving a £310,000 funding boost.

Enervate, which was spun out of Durham University in 2002, has received the cash from the Business Investors Group (BiG) and North Star Equity Investors, and will use it to launch the product later this year.

The technology, developed by Dr Stefan Przyborski allows cells to be cultivated in three-dimensional conditions closer to the way cells grow in tissues in the human body rather than the traditional flat surface of a Petri dish.

The company believes this 3-D ‘scaffold’ is set to become a vital tool in the cell biologist’s armoury, providing a far greater insight into how cells behave in the body and is in talks with three distributors to sell it overseas.

The firm, which has 12 research and development staff at the university, recently moved into a manufacturing base at Sedgefield science hub Netpark, where it employs five staff, but plans it grow this to 40. The investment follows the £750,000 private equity boost the firm received from NorthStar in 2008, which helped it to carry out a number of key clinical trials.

The firm is now aiming the technology at a number of sectors, including the medical sector as well as the cosmetics industry, which will lead to a significant reduction in human and animal testing due to the realistic nature of the cells created.

Mr Przyborski said that the company would soon be entering a worldwide market worth £200m and that Reinnervate would be able to capture 30% of that market – equating to a turnover of £30m.

“There are a great many markets that are open to us at this time and we are excited about finally getting the product out to the market,” Mr Przyborski said.

“Although this technology will not replace animal and human testing, it will provide an alternative for a great many industries.

“We will be looking to build up our site at Netpark over the next two years as our primary manufacturing base.”

The company is now developing alternative versions of the technology to tap in to other markets, such as toxicity testing, and said that it plans to stay in the North East.

Leading on the venture capital investment element of the deal, North Star’s Alex Buchan, said: “Reinnervate’s technology platforms have enormous potential to transform the way cell biologists work and are particularly relevant to the testing of new drugs.

“The team has performed exceptionally well in bringing the products to the point of commercialisation and this investment will enable them to capitalise in on this.”

Reinnervate helped secure the funding with assistance of Newcastle – based accountant’s Tait Walker. Its corporate finance partner Steve Plaskitt, said: “To be able to structure a deal and secure this level of funding is a reflection of the confidence both BiG and North Star have in Reinnervate’s ability to research and develop highly innovative products which will ensure its continued growth in the biotechnology sector.

“I look forward to being able to provide further support in the company’s ongoing success.”