NetScientific PLC (AIM:NSCI) said it is investing a further US$1mln (£750,000) into portfolio company EpiBone Inc. which developed a revolutionary process to regenerate bone and cartilage.
The investment is made up of US$734k from the AIM company’s balance sheet and US$266,000 in advised funds from its corporate finance and venture capital subsidiary EMV Capital Ltd.
Part of a wider US$11m funding round, Netscientific said the cash should fund the US-based EpiBone through to a scale-up funding round expected in late 2022 and enable the company to accelerate development of its pipeline.
“We see EpiBone as an emerging leader in the regenerative medicine space, which is now coming of age," Dr Ilian Iliev, chief executive of NetScientific said.
“Its platform technology has the potential to transform the bone and cartilage space by making implants from patients' own cells across multiple applications. This is another example of NetScientific's judicious investment approach to build stakes in businesses, and supporting its trans-Atlantic model, as it accelerates the portfolio company growth to deliver superior investment returns.”
EpiBone’s lead bone product, EB-CMF, is now in Phase 1 human trials after being granted Investigational New Drug (IND) clearance from the US Food and Drug Administration (FDA) in 2019.
Its three-step technology starts with a CT scan to determine the exact 3D size and shape of the bone needed for the defect being treated, together with extraction of adult stem cells.
The second stage involves the creation of a precise, personalized scaffold of the required bone and the design and construction of a custom bioreactor that will incubate the new bone as it grows.
The final stage involves infusion of the stem cells into the scaffold and growth inside the bioreactor where they are remodelled into a personalized bone graft ready for implantation.
EpiBone chief executive Nina Tandon said the new funding will provide “not only investment, but also value added skills and channels for EpiBone to grow internationally”.