All jobs have been lost at Tyneside university spin-out PulmoBioMed after it ceased trading when a main financial backer pulled out. The company, launched in 2020 as part of Northumbria University's spin-out programme, developed a breath test to support diagnosis of asthma and other conditions such as pneumonia.
Company background and technology
PulmoBioMed was founded by molecular biologist Dr Sterghios Moschos, who led the team that developed a point-of-need test for Ebola virus disease in 2015 during the outbreak in West Africa. The company later moved to the Biosphere at Newcastle Helix, home to a cluster of life sciences firms.
The handheld device was said to be 40 times cheaper than more invasive endoscopy, and the firm was targeting US markets after completing a UK Government contract, aided by several funding deals. In 2024, it sealed a £1.4m investment round, including £700,000 in grants to commercialise its lung testing technology.
Liquidation and job losses
Despite these achievements, the business was unable to generate sufficient commercial revenues and relied on external investment. Its financial position deteriorated significantly in March after the unexpected withdrawal of support from a key funding provider. Directors sought further investment, including a final fundraising initiative that brought in additional commitments, but these were insufficient to support ongoing trading.
Shaun Hudson and Allan Kelly of FRP Advisory were appointed joint liquidators earlier this month after the company entered creditors' voluntary liquidation. All 10 members of staff were made redundant. Gordon Brothers have been instructed to assist in marketing and selling the company's intellectual property rights and associated stock.
Shaun Hudson, joint liquidator and partner at FRP Advisory, said: “The company had developed promising technology and achieved a number of significant regulatory and operational milestones. However, like many early-stage life sciences and medical technology businesses, it remained heavily reliant on external investment while progressing towards commercialisation. The unexpected withdrawal of a key funding provider ultimately left the business without the financial support required to continue trading, despite efforts by the directors to secure alternative funding.”
