Life sciences firm raises £9.2m in new funding round

Locate Bio, the Nottingham orthobiologics company, has completed an oversubscribed £9.2m funding round from both new investors and existing investors, Mercia Ventures and BGF.

The proceeds will fund a clinical study of LDGraft, a bone graft substitute for spinal fusion.

The firm says the funding and the clinical trial known as RESTORE (A Randomized Study of LDGraft in Single Level Anterior Lumbar Interbody Fusion) marks a “significant” milestone in the company’s mission to relieve suffering and restore the quality of life for millions of patients suffering from debilitating orthopaedic conditions worldwide.

CEO John von Benecke said, “This oversubscribed funding round underscores the significant investor confidence in the company’s vision and the potential of LDGraft to become the most relied-on bone graft substitute globally.”

“With the rapidly ageing global population, there is an urgent need for products that address chronic, progressive, and debilitating back pain,” added von Benecke. “With a design inspired by nature for a more biomimetic approach to the release of rhBMP-2, we are incredibly excited about the potential of LDGraft. The RESTORE clinical trial is an important step towards realising that ambition.”

Jonathan Earl, investor at BGF, said: “Locate Bio has demonstrated significant progress in its drive towards developing innovative solutions that address a wide range of musculoskeletal needs. Their approach represents a significant breakthrough in this field and we look forward to providing continued support for the business as it moves through clinical trials and towards regulatory approval.”

Alex Gwyther, investor at Mercia Ventures, said: “We have long believed in Locate Bio’s mission to develop next generation orthobiologics that can transform patients’ lives. We are pleased to see both the progress in the technology and the world-class team that the company has brought together.”