Regenerative medicine has a major new player following the merger of two of Cambridge’s leading innovators, NovaThera and MedCell Bioscience.

The deal is expected to bring critical mass to the enlarged group, which will trade under the name MedCell Bioscience from Cambridge’s Babraham Research Campus.

Specialising in musculoskeletal regeneration, the group says it now has a post merger valuation of about £30 million.

“This is an exciting development for both companies, resulting in a regenerative medicine business with secure IP, a strong R & D focus, expanding revenues, and the critical mass needed to exploit MedCell’s potential,” said MedCell chief executive, Greg McGarrell.

NovaThera chairman, Michael Anderson, agreed, adding: “This merger of equals creates a company with the ability to be a leading light among Europe’s biotech sector.”

NovaThera brings two key platform technologies to the new company: TheraGlass, a novel bioactive glass; and the NovaPod, a rotating bio-processor.

TheraGlass interacts with the body’s tissues to stimulate cell growth and has spawned technologies with potential uses from craniofacial reconstruction to drug delivery. The NovaPod is a ready-to-launch system for 3D bio-processing allowing dynamic media analysis and enabling the rapid and improved scale-up of stem cell culture.

MedCell will continue to further develop its MS-Ten programme. This technology harnesses the plasticity of autologous mesenchymal stem cells to promote tendon and ligament regeneration, in humans.

The technology has already been successfully commercialised, as MS-Eq, in the animal health markets throughout Europe, North and South America, Australia, and the Middle East.

“The combined technologies and expertise have genuine synergies and the R & D programmes and commercial opportunities will benefit from the new blend of individual skills and valuable IP,” said MedCell’s chief operating officer, David Mountford.