Bedfordshire biotech raises £6m to cut viral vector costs with smart polymers
This article covers Tozaro, a Bedfordshire biotech startup that has raised £6m in a growth funding round to commercialise its Smart Polymer platform for viral vector manufacturing. The funding is intended to form commercial partnerships and accelerate adoption of a process designed to reduce viral vector production costs, supporting manufacturers and aiming to improve patient access to cell and gene therapies.
Tozaro, a Bedfordshire biotech startup, has raised £6m in a growth funding round to commercialise its “Smart Polymer” platform, a manufacturing technology intended to reduce the cost of viral vectors used in cell and gene therapies. The funding is aimed at forming commercial partnerships and accelerating adoption of a process the company says could lower production costs that currently limit patient access to some breakthrough treatments.
Why it matters
High manufacturing costs are a recognised bottleneck for cell and gene therapies. CAR-T treatments for certain blood cancers can cost over £370,000 per patient, while some gene therapies for rare diseases have price tags exceeding £1m. Lowering the cost of viral vector production could make more treatments financially viable for health systems and increase the number of patients who can be treated.
Tozaro’s announcement comes as the sector grows: there are more than 70 cell and gene therapy products on the market and over 3,400 in development. Market estimates cited in the announcement place current value at more than $10bn with forecasts approaching $100bn by 2034, emphasising how manufacturing efficiency will shape access and commercial scale.
Inside the product
Tozaro’s Smart Polymer platform combines molecular modelling and machine learning to improve the manufacture of viral vectors. The company says the approach targets improved yields and product quality during downstream processing rather than taking on clinical development of therapies themselves.
Work to date has focused on lentiviral vectors used in CAR-T production and on adeno-associated virus (AAV) vectors used in other gene therapies. The technology has been trialled by a number of manufacturing companies and Tozaro says it is in talks with leading global manufacturers to apply the platform at scale.
Who are the investors?
The £6m round was led by Mercia Ventures, which invested through the Midlands Engine Investment Fund II alongside participation from Mercia’s own funds and other existing backers. Mercia first invested in Tozaro when the company was still known as MIP Discovery in 2015. The latest round brings total funding to date to £23.7m.
The investment is intended to help Tozaro form commercial partnerships and move from platform development into engagement with downstream processing partners and potential customers, according to the investors.
In the announcement, Mark Payton, CEO of Mercia Asset Management, said:
The growth of this exciting new generation of biological therapeutics is being held back by the extreme cost of production. Tozaro is developing an approach that will significantly reduce this cost, without shouldering the risk of clinical development of the therapeutic itself. It’s a real privilege to witness the significant commercial progress made over the past year, moving from platform development into meaningful engagement with downstream processing partners and potential customers.
In the announcement, David Tindall, Senior Investment Manager at the British Business Bank, said:
The Midlands Engine Investment Fund II was established to support the kind of innovation that helps businesses stand out, become market leaders and deliver better solutions to those who need them most. It is inspiring to see Tozaro based in Bedfordshire breaking barriers in the sector and we’re proud to play a role in their growth journey.
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Founder perspective
In the announcement, Jason Slingsby, CEO of Tozaro, said:
Tozaro is leading the way in using high-value polymers to transform production of some of the world’s most innovative but costly medicines, and our technology is attracting global interest. By improving manufacturing yields and quality while reducing costs, we can remove the barriers and enable more patients to access these life-changing cell therapies.
Slingsby frames the company’s role as de‑risking and improving the economics of biomanufacturing rather than developing therapeutic assets, positioning Tozaro as a supplier to downstream processing and vector manufacturers.
The bigger picture
The financing highlights a broader industry focus on reducing the cost of goods for advanced therapies. As the number of authorised products and late-stage candidates grows, pressure on manufacturing capacity and cost will increase. Investors and manufacturers are therefore prioritising technologies that can make production more efficient and predictable.
The deal also illustrates continued regional funding activity in UK biotech: a mix of commercial venture funds and government-backed vehicles such as the Midlands Engine Investment Fund II and the British Business Bank are channeling capital into firms addressing infrastructure and manufacturing challenges rather than clinical pipelines.
This funding round for a Bedfordshire company shows how targeted investment in enabling technologies can support the wider objective of building domestic biomanufacturing capability in the UK and Europe, a priority for health systems and policymakers seeking more resilient supply chains and broader patient access to advanced therapies.
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