The details of the collapse of AMLo Biosciences into administration last month have been revealed.
The life sciences company, which spun out from Newcastle University and was founded in 2017, ceased to trade immediately following the Chris Petts and James Hichens of Grant Thornton as joint administrators on 1st July.
All 11 staff were made redundant at the firm, which specialised in prognostic tests for early-stage skin cancers – notably melanomas – and was based in The Biosphere at Helix.
New documents show that the firm’s demise was triggered when a lead investor pulled out of a fresh funding round.
“The directors of the company attribute the insolvency of the company to failure to secure investment to continue to support the company’s activities. An investment round at the end of April 2025 was unsuccessful, after a new lead investor pulled out,” it said.
“The existing investors attempted to pull together bridging funding in May 2025 which was also unsuccessful.
“Grant Thornton was engaged to run an AMA (accelerated mergers and acquisitions) process of the business with a view to effecting a transaction via a pre-packaged administration.
“During this process it became clear that none of the interested parties were able to transact in the timeline available to the company. As a result, the directors placed the company into administration.”
The firm collapsed into insolvency owing £1.89m, the documents show, with £48,345 owed to staff.
The staff and investors Esperante BV and Northstar Ventures – together the secured or preferential creditors – are collectively owed £1.66m and may recoup a portion of this sum.
AMLo, which was operating in the UK and US, has raised more than £4m in funding from the North East Innovation Fund – managed by Northstar Ventures – Esperante Ventures, Ascension, Conduit, Future Planet Capital, Innovate UK and angel investors.
However during an innovation showcase in December 2024, CEO Dr Marie Labus (pictured) told the UK Parliamentary Science, Innovation and Technology Committee: “As an all-female executive team that has discovered, researched, validated and commercially launched a diagnostic innovation into the US and UK healthcare markets, we are proud of what we have achieved so far.
“But further investment is crucial for companies like ours to navigate the hurdles in making our product, AMBLor, widely available to patients in the UK through the NHS.
“It is also concerning that only 3% of funding goes to female-led innovators. With the right support, AMLo Biosciences can continue to drive forward healthcare innovation, representing the vibrant business community of North East England, which is why the opportunity to address this Committee – in the heart of UK government – on the potential for positive change and collaboration was so important.”