Axol's $2.8M Funding to Advance Human Disease Modeling in the US

CAMBRIDGE, England & EDINBURGH, Scotland – January 13, 2026 – Axol Bioscience Ltd., a pivotal player in the field of induced pluripotent stem cell (iPSC) technology, has secured $2.8 million (£2.1 million) in a significant funding round. The investment, led by US-based life sciences specialist BroadOak Capital Partners, with continued participation from founding investor the Roslin Foundation, is set to catalyze the company’s expansion in the United States and accelerate the development of its next-generation disease models.

This capital injection comes at a time of significant momentum for the UK-based company, which provides high-quality iPSC-derived human cells and critical research services to pharmaceutical companies, biotechs, and academic institutions worldwide. The funds are earmarked for a multi-pronged growth strategy that includes strengthening its US commercial presence, scaling up cell manufacturing at its Roslin Innovation Centre facility in Edinburgh, and enhancing its portfolio of advanced models for neuroscience, ophthalmology, and cardiovascular research.

Strategic Investment for US Expansion and Scale-Up

The decision to pursue aggressive growth is backed by a strong track record of financial performance. Axol reported impressive revenue growth of 45% in 2025, following a 36% increase in 2024, signaling robust and escalating demand for its specialized products and services. This new funding is designed to capitalize on that demand.

“We’re proud to partner with BroadOak, a global leader in life sciences investing,” said Liam Taylor, CEO of Axol Bioscience. “Their expertise and support, alongside our long-term partner Roslin Foundation, reflects confidence in our long-term vision, team, products, and technology as we scale operations and expand internationally.”

The expansion is a direct response to a clear market need. Oliver Richardson, the company’s CFO, elaborated on the operational goals. “Following Axol’s 45% revenue growth in 2025 and 36% in 2024, this funding allows us to strengthen our US operations and expand manufacturing capacity at our Edinburgh site, ensuring we can continue to meet increasing global demand,” he stated.

By bolstering its US operations, Axol aims to provide more direct support to its large and growing customer base in North America, which is a major hub for pharmaceutical research and development. Simultaneously, increasing manufacturing capacity at its ISO 9001:2015 certified facility is critical to maintaining supply chain integrity and meeting the complex, high-volume needs of global drug discovery programs.

Riding the Wave of Regulatory and Market Change

The investment in Axol is not happening in a vacuum. It reflects a profound shift in the landscape of drug discovery and preclinical research. The global iPSC market, valued at approximately $1.83 billion in 2024, is on a steep upward trajectory, with projections estimating a compound annual growth rate (CAGR) of over 10% to reach nearly $4.11 billion by 2034. This growth is driven by the urgent need for more accurate and predictive models of human disease.

For decades, researchers have relied on animal models, which often fail to recapitulate the complexities of human biology, leading to high failure rates for drug candidates in clinical trials. Human iPSC technology offers a powerful alternative. By reprogramming adult cells (like skin or blood cells) back into a stem-cell-like state, scientists can then differentiate them into any cell type in the body—such as neurons, heart cells, or retinal cells—creating a “disease-in-a-dish” that is genetically specific to the donor.

This paradigm shift is being actively encouraged by regulatory bodies. Daniel Friedman, Managing Director at BroadOak Capital Partners, highlighted this trend as a key factor in their investment decision. “Axol is a leader in their space and is well positioned as global regulators actively usher in the adoption of cell-based models,” Friedman said. “We are excited to be partnering with Liam, Oli, and the entire Axol team to support their next phase of growth.”

This regulatory tailwind, exemplified by legislation like the FDA Modernization Act 2.0 in the United States, which reduces mandates for animal testing, creates a fertile ground for companies like Axol that specialize in human-relevant in vitro systems. The move promises not only more ethical research but also more effective and less costly drug development pipelines.

Pioneering More Accurate Disease Models

Axol has carved out a distinct leadership position through its focus on creating physiologically relevant models for some of the most challenging human diseases. The company has become particularly well-regarded for its contributions to neurodegenerative disease research, an area where traditional models have been notoriously inadequate.

Axol offers an extensive “axoCells ALS Toolbox for Drug Discovery,” which provides researchers with motor neurons derived from patients with key genetic mutations associated with amyotrophic lateral sclerosis (ALS), such as C9orf72 and SOD1. This allows for the direct study of disease mechanisms in human cells and the screening of potential therapies on a relevant biological background. The company has further solidified its commitment to this field through a collaboration with the ALS Therapy Development Institute (ALS TDI), aimed at expanding global access to these critical research tools.

Beyond ALS, Axol is making strides in modeling other neurodegenerative conditions like Huntington's, Parkinson's, and Alzheimer's disease. A collaboration with Sygnature Discovery, for example, focuses on integrating human iPSC-derived microglia—the primary immune cells of the brain—into screening platforms to target neuroinflammation, a key process in many of these disorders.

The company's expertise also extends to other critical areas. In ophthalmology, Axol provides iPSC-derived retinal pigment epithelium cells to create scalable models for diseases like Dry Age-related Macular Degeneration (Dry-AMD). In cardiovascular research, its iPSC-derived cardiomyocytes are used for vital cardiotoxicity screening, helping pharmaceutical companies identify potentially dangerous cardiac side effects early in the drug development process, a major cause of late-stage drug failure. This strategic capital injection positions Axol Bioscience not just to expand its footprint, but to deepen its impact on the development of new medicines for humanity's most challenging diseases.