A University spin-out biotech firm could create up to 50 jobs in the next five years following a £1.6m cash boost.
Reinnervate, which is based at Sedgefield’s NETPark, has received the funding which includes £500,000 from the North-east’s £125m Finance for Business North East Fund.
The grant was made possible by equity investment handlers NorthStar Equity Investors, which manages two of the finance streams available under the fund. It drew down the cash from the Accelerator Fund set up to help companies commercialise their first product and scale up production.
The Durham University spin-out, 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.
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.
The latest cash injection has helped Dr Przyborski’s team move from Durham University to NETPark.
Reinnervate chief executive Ashley Cooper said the company was on the brink of commercial operation, which he described as “a milestone all too rarely achieved by aspiring life science companies”.
“The funding and support from Cels (Centre of Excellence for Life Sciences), One North East and NorthStar has been fundamental to our success. Seed and other early stage funding is almost impossible to secure in the current climate and without the early support that we received in the North-east region our innovative cell culture technologies would never have reached the market.
“The company expects to create up to 50 local jobs by 2015 - made possible by further investment by NorthStar and a syndicate of private and management investors.”
The investment in Reinneravate is the second to made into the region using the North-east fund.
The £650,000 investment into Eutechnyx from the Finance for Business North East Fund was also managed by venture capitalists at NorthStar Equity Investors.
The £125m fund will support loans and equity investments into around 850 businesses, creating more than 5,000.
Source: The Journal June 3 2010
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