Axol buys Newcells’ ophthalmology business to grow drug discovery portfolio
Axol Bioscience has acquired Newcells Biotech’s ophthalmology business to expand its portfolio of drug discovery and safety testing models.
Cambridge, UK-based Axol provides human induced pluripotent stem cell (iPSC) technologies. Biopharma companies, contract research organizations (CROs) and other groups use Axol’s iPSC-derived disease models for activities such as compound screening, toxicity studies and mode-of-action investigations. The company also provides services based on its technology.
Newcells, a spinout from Newcastle University, provides in vitro tools to understand how drugs interact with tissues. The company’s portfolio includes retinal organoid and retinal pigment epithelium models. Newcells generated retinal pigment epithelial cells from human iPSCs to help drug developers evaluate gene therapy viral vectors, model disease and investigate safety and efficacy.
Axol has acquired Newcells’ ophthalmology team, facilities and intellectual property for an undisclosed sum. The acquired assets support the supply of iPSC-derived preclinical research and translational drug development products and services to biopharma and CRO customers in Europe and the US.
Florian Regent, head of ophthalmology at Axol, said in a statement that Newcells has created a scalable retinal organoid platform focused on predictive, human-relevant iPSC-derived retinal models. Integrating the platform with Axol’s existing ophthalmology portfolio positions the company to offer a broader, more physiologically relevant toolkit to meet the evolving needs of drug developers, Regent said.
“As drug developers increasingly seek predictive human models to de-risk programs earlier, this acquisition further positions Axol at the forefront of ophthalmology drug discovery and safety testing,” Regent said.
Evotec is among the other companies that offer iPSC-based ophthalmology models. The German service provider landed a deal with Boehringer Ingelheim centered on the models in 2022.
Growing through acquisitions
Buying the assets continues Axol’s expansion beyond its historical focus on neuroscience, pain and touch, and cardiovascular disease. Axol expanded into ophthalmology and dermatology by acquiring Phenocell in 2024. The Phenocell deal followed Axol’s merger with cell biology CRO Censo Biotechnologies in 2021.
Acquiring Phenocell gave Axol control of human iPSC-derived sebocytes and retinal pigment epithelium and photoreceptor cells, and positioned it to provide dry age-related macular degeneration (AMD) services. Axol added dry AMD to a list of its areas of specialization after buying Phenocell. The latest list includes ophthal-inflammation as another area of specialization within ophthalmology.
Axol secured funding for its ongoing expansion in January. US life sciences specialist BroadOak Capital Partners led the $2.8 million (€2.4 million) investment with support from Axol’s founding investor, the Roslin Foundation. Axol, which raised $5.3 million in 2021, is using the money to expand its operations and commercial presence in the US, develop enhanced models and scale up cell manufacturing.
Daniel Friedman, managing director at BroadOak, framed his fund’s investment in the context of efforts by global regulators to “actively usher in the adoption of cell-based models.” Cell-based models could be an alternative to animal testing. If tests move from animals to cell-based models, Axol could build on the 45% revenue growth it achieved in 2025.
