Aelius Biotech raises £750K for animal-free drug and food testing

A UK biotech company whose unique laboratory gut model is used to trial new drugs and foodstuffs without the need for animal testing has raised a further £750,000 from the North East Venture Fund supported by the European Regional Development Fund and managed by Mercia Ventures.

Newcastle-based Aelius Biotech provides testing services for consumer health, pharmaceutical and ‘functional food’ companies, including Huel. It models how substances will be digested by the body to help customers to de-risk product development and improve formulations.

Aelius’s model is the only one of its type that can simulate all three stages of the digestion process – from substances passing through the gut, crossing the mucus layer on its surface and being absorbed into the body. 

While other models focus on the first or final stage, Aelius has developed the world’s first cell-compatible mucus, enabling it to create a fully integrated model.

Aelius was founded in 2018 by Dr Peter Chater, Dr Matt Wilcox and Professor Jeff Pearson based on their research at the University of Newcastle. The company received 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, and attracted a host of new food clients including a number of alternative protein and lab-grown meat manufacturers. Aelius doubled its revenue in 2024.

Dr Peter Chater, the company’s CEO, 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 of 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.”

The funding will help Aelius Biotech to expand its presence in the US and European markets and complete work on its new laboratory in the city’s Blandford Square. 

Lead image: Chris McCourt of Mercia Ventures with Aelius Biotech’s founder and CEO Peter Chater. Photo: uncredited.