Aelius Biotech Raises £750K to Expand In Vitro Gut Model Platform for Drug and Food R&D

Aelius Biotech, a Newcastle-based biotech company developing a non-animal laboratory gut model, has secured an additional £750,000 from the North East Venture Fund (backed by the European Regional Development Fund and managed by Mercia Ventures). The funding supports expansion into US and EU markets and completion of a new lab facility in Blandford Square, Newcastle.

Founded in 2018 by Dr. Peter Chater, Dr. Matt Wilcox, and Professor Jeff Pearson based on research at the University of Newcastle, Aelius has developed what it describes as the first digestion model to integrate all three physiological stages: passage through the gut, transport across a mucus layer, and absorption. The key differentiator is a proprietary cell-compatible mucus, enabling full simulation of intestinal absorption in vitro—a process not captured in traditional models, which often isolate individual stages.

Chris McCourt (Mercia Ventures) and Peter Chater, CEO

Aelius offers testing services to pharmaceutical, consumer health, and functional food companies, including clients such as Huel and several alternative protein and cultivated meat startups. The platform is used to assess digestion, absorption, and bioavailability of compounds, helping clients optimize formulations without relying on animal testing.

Following its previous £1.25 million round in 2023, the company has tripled staff from 5 to 15 and doubled revenue in 2024. Mercia Ventures said the company is gaining traction across sectors with a need for more predictive preclinical models. The latest round is expected to accelerate Aelius’s commercial reach and production capacity.

Topics: Startups & Deals