Angel raises £1.93m for stem cell expansion

ONE of Scotland's smallest quoted companies yesterday revealed it had raised £1.93 million to fund expansion brought on by the growth of stem cell research in the United States.

Angel Biotechnology, which is based at Edinburgh's Pentlands Science Park, makes biological products used by drug companies conducting trials.

The firm said the placing of 530 million shares at 35p each had been oversubscribed. The firm, which has about 28 staff in Edinburgh, will use the cash to re-open its manufacturing plant in Newcastle, which closed about five years ago. The move will create up to ten jobs.

Executive chairman Paul Harper told The Scotsman that the growth of stem cell research in the US under Barack Obama's presidency gave him the confidence to expand.

Stem cells have the potential to be changed into any other type of cell in the body and could be used to treat Parkinson's disease and other ailments.

"We already have 80 per cent of our orders secured for this year and our clients have said they would place more orders with us if we had the capacity," Harper explained.

His comments came as Angel, quoted on Aim since 2005, also won its first contract with Massachusetts-based Pathfinder Cell Therapy. Deals in the UK have included work for ReNeuron, the Aim-listed firm that last year carried out the world's first clinical stem cell trials at Glasgow's Southern General Hospital.