From horses to humans: VetCell seeks £10M to treat tendon injuries

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VetCell Bioscience Limited, a provider of animal health stem cell technologies is seeking to raise £10 million to translate its technology for treating horse tendon injuries to the treatment of human tendon and ligament injuries.

The company has developed a procedure to use stem cells to treat injuries to the flexor tendon or suspensory ligament of horses. 

VetCell is looking to raise the funding in two stages.  The first stage is currently underway and closes on the 10^th of August, while the second will open in September of this year.

“The strategy for the fundraising is to split the overall requirement of £10 million into two tranches, the first £2 million, open to existing shareholders and a select number of qualified investors, is going very well…and we anticipate the whole offering will be taken up,” said Greg McGarrell, CEO of VetCell, “The £2 million will be used to strengthen the Company’s position in the US market and increase sales volume, complete the preparations for the human clinical study on Achilles tendonitis, and undertake rigours internal due diligence in preparation for institutional/ venture capital investment.”  

“The second tranche of £8 million will get underway in September and we are seeking biotech/healthcare focused institutional/ VC investors,” continued McGarrell, “The first tranche puts the company in a stronger position when negotiating with the VC type investor and will enable us to strike a better deal.”

McGarrell also said the company is seeking partners to out-license their technology in “Australia, Asia and South America to commercialize the technology in the human healthcare market”.  VetCell “has already licensed the core technology (Patented - autologous mesenchymal stem cells composition for the treatment of tendon or ligament injury) to two biotech companies for equine market.”

VetCell’s equine stem cell treatment is currently available to veterinary surgeons in the UK and internationally.   In addition the company has developed a simple method for separating and storing umbilical cord stem cells.  The company hopes to expand its range of techniques for the treatment of other domestic pets including cats and dogs.

VetCell, formerly the Equine Regenerative Medicine Company, was founded in August 2002 in partnership with the Royal Veterinary College and the Institute for Orthopaedic and Musculoskeletal Science.  The current group of 52 shareholders consists of private investors, founders and key people, with the total investment since the company was founded in 2002 standing at £850,000, and a revenue of £550,000, according to the CEO.