Aelius secures £750,000 to 'accelerate growth'

A Newcastle-based biotech company is set to expand its innovative lab testing services after raising £750,000 in funding.

Aelius Biotech, founded in 2018 by Dr Peter Chater, Dr Matt Wilcox and Professor Jeff Pearson based on their research at Newcastle University, specialises in a unique laboratory gut model that helps trial new drugs and foodstuffs without animal testing. 

The company’s groundbreaking technology simulates all three stages of digestion, offering clients such as Huel a more accurate way to test and improve their products.

Aelius received an initial £1.25m funding from Mercia Ventures and the North East Venture Fund in 2023. 

Since then, it has increased staff from five to 15, attracted a host of new food clients and doubled its revenue in 2024. 

Bosses say the new funding round, secured from the North East Venture Fund, will support Aelius’ expansion into the US and European markets, as well as help complete its new laboratory in Newcastle. 

Dr Peter Chater, Aelius’ chief executive, said: “Over the last year we’ve demonstrated the market for novel and improved in vitro testing methods, and expanded our customer base as well as the Aelius team. 

“Along with our move to our new premises, this latest funding will enable us to accelerate our growth in international markets, particularly in the US.”

Chris McCourt, investment director at Mercia Ventures, added: “The pharmaceutical and food industries have a clear need for better laboratory models to drive faster product development.

“Aelius’s model was created to meet this need. 

“The company has been growing steadily and has attracted blue-chip clients and gained a strong foothold in the food industry. 

“This latest funding will help it expand internationally and pursue its aim to become a global leader in its field.”

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