Newcastle Life Sciences Firm Sees Partial Rescue Through Retina Business Acquisition
A Newcastle-based biotech company has experienced a partial rescue deal that has preserved jobs in its specialized retina division while resulting in other redundancies. Newcells Biotech, a drug discovery partner specializing in developing in vitro models, saw its ophthalmology business acquired by Cambridge-based Axol Bioscience Ltd following the appointment of administrators.
Administration and Acquisition Details
On February 12, 2026, insolvency practitioners from Grant Thornton UK Advisory & Tax LLP were appointed as joint administrators of Newcells Biotech Limited. Shortly after this appointment, the joint administrators agreed to sell the Retina Business of the company as a going concern to Censo Biotechnologies Limited, which trades as Axol Bioscience.
The acquisition includes the specialist team, facilities, and intellectual property within the retina division, specifically related to the supply of proprietary iPSC-derived (induced pluripotent stem cell) products and ophthalmology research services to biopharma and biotechnology customers across Europe and the United States.
Impact on Employment
The acquisition ensures that operations of the Retina Business will continue at the main trading premises in Newcastle's Biosphere at Newcastle Helix and has secured the retention of all employees working within that part of the business. However, the remaining operations of the company ceased upon the administrators' appointment.
A company spokesman explained: "It was not economically viable for the joint administrators to continue to employ the remaining members of staff, resulting in 18 redundancies." The exact number of staff members who have transferred to Axol Bioscience has not been disclosed, but all employees within the retina division have been retained.
Company Background and Recent Developments
Newcells Biotech was founded 11 years ago by Dr. Mike Nicholds and Professor Lyle Armstrong as a spin-out from Newcastle University. The firm specialized in providing in vitro tools for testing how drugs interact with tissues, with particular focus on models of the retina, kidney, and lung. In 2024, the company employed 49 people.
The company's work gained increased relevance after the US Food and Drug Administration changed its rules four years ago, eliminating the requirement for new drugs to be tested on animals. This regulatory shift created greater interest in 3D models like those developed by Newcells Biotech.
During 2024, Newcells Biotech announced two significant funding rounds totaling £3.55 million, with £2.35 million raised in February and £1.2 million in May. These investments aimed to help the business build its customer base and develop partnerships with other companies in its field.
Axol Bioscience's Strategic Expansion
For Axol Bioscience, a leading provider of stem cell technologies for drug discovery and research, this acquisition represents strategic expansion. Liam Taylor, CEO of Axol Bioscience, stated: "The addition of Newcells' retinal organoid business is our third acquisition in five years."
He added: "Newcells has developed a highly sophisticated and scalable retinal organoid platform focused on predictive, human-relevant iPSC-derived retinal models that are recognized across the industry. Integrating this capability with Axol's existing ophthalmology portfolio enables us to offer a broader, more physiologically relevant toolkit to support research."
The acquisition expands Axol's portfolio of models and strengthens its position as the leading independent provider of physiologically-relevant in vitro retinal models for ophthalmology drug discovery and safety testing. This move follows Axol's recent announcement of a $2.8 million financing deal led by US life sciences investor BroadOak Capital Partners, which is supporting expansion of its US commercial operations, product development, and manufacturing scale-up.
