Tozaro & Mercia Target Gene Therapy Cost Barriers in 2026

LONDON, February 16, 2026 — UK biotech company Tozaro has raised £6 million in funding to scale its gene therapy manufacturing platform, addressing critical cost and efficiency challenges in the production of viral vectors essential for advanced medical treatments. The funding round, led by Mercia Ventures with participation from the Midlands Engine Investment Fund II and other existing backers, aims to make life-saving therapies for conditions like leukaemia and Huntington’s disease more financially accessible.

Executive Summary

• Tozaro, a Bedfordshire-based biotech firm, raised £6 million to scale its operations.
• Mercia Ventures led the funding round with contributions from the Midlands Engine Investment Fund II.
• The funds will be used to improve manufacturing efficiency and reduce the cost of viral vector production.
• Tozaro’s proprietary ‘Smart Polymer’ technology replaces expensive proteins, enhancing yields and lowering costs in gene therapy production.

Key Developments

Tozaro, founded in 2015 and headquartered in Bedfordshire, has secured £6 million ($8.2 million) in a funding round led by Mercia Ventures, utilizing capital from the Midlands Engine Investment Fund II and its own resources. The funding brings Tozaro’s total capital raised to £23.7 million. The company plans to leverage this latest investment to scale its proprietary manufacturing platform, which uses machine learning and molecular modelling to solve inefficiencies in the production of viral vectors—key components in advanced therapies such as CAR-T cancer treatments and broader gene therapies.

Traditional manufacturing methods rely on expensive proteins to produce viral vectors, making therapies prohibitively expensive, sometimes exceeding £370,000 per patient. Tozaro’s ‘Smart Polymer’ platform replaces these proteins with synthetic compounds, which are cheaper, more stable, and easier to produce. The platform employs over 500 chemical groups to enhance binding in chromatography, compared to the 20 amino acids typically used by conventional technologies. By improving manufacturing yields, reducing costs, and simplifying processes, Tozaro aims to address one of the biggest challenges in the biopharmaceutical industry: the financial inaccessibility of life-saving therapies.

Mark Payton, CEO of Mercia Asset Management, highlighted the significance of the investment: “Tozaro is developing an approach that will significantly reduce this cost, without shouldering the risk of the therapist’s clinical development. It’s a real privilege to witness the significant commercial progress made over the past year.”

Market Context

The global gene therapy market has been growing rapidly, driven by advancements in treating rare genetic disorders, aggressive cancers, and other severe conditions. For more on [related biotech developments](/roche-novartis-amgen-lead-global-biotech-market-to-39-trillion-by-2030-company-market-caps-forecast-12-february-2026). However, the high cost of gene therapies remains a barrier to widespread adoption. According to industry reports, gene therapy prices often exceed £1 million per patient, challenging healthcare systems worldwide. The bottleneck lies not in the scientific innovation but in the complex, resource-intensive manufacturing processes, particularly the production of viral vectors like lentiviral and AAV vectors.

Efforts to reduce these costs are critical to expanding access to such treatments. Companies like Tozaro are at the forefront of this push, utilizing cutting-edge technologies like machine learning and molecular modelling to streamline production. With the global gene therapy market expected to surpass $20 billion by the end of the decade, innovations in manufacturing efficiency could redefine the economics of the sector.

BUSINESS 2.0 Analysis

Tozaro’s latest funding round underscores a growing trend in the biotech sector: investment in manufacturing innovation rather than just therapeutic development. The company’s ‘Smart Polymer’ technology exemplifies how the integration of synthetic chemistry and machine learning can address systemic inefficiencies. By improving yields and reducing costs, Tozaro is tackling the economic barriers that have long hindered the scalability of gene therapies.

For investors, Tozaro presents an attractive proposition. Unlike traditional biotech firms that focus on high-risk drug development, Tozaro is positioned as a solutions provider within the supply chain. This approach mitigates clinical development risks while addressing a critical industry pain point. Additionally, the backing from Mercia Ventures and the Midlands Engine Investment Fund II signals confidence in the company’s commercial potential.

From a broader industry perspective, Tozaro’s advancements could have ripple effects across the biopharmaceutical landscape. By lowering production costs, the company could enable smaller biotech firms to bring therapies to market, potentially accelerating innovation and competition. Furthermore, the scalability of Tozaro’s platform could make advanced therapies more accessible in emerging markets, where cost considerations are even more pronounced.

Why This Matters for Industry Stakeholders

For healthcare providers, Tozaro’s innovations could alleviate the financial strain associated with administering gene therapies. By reducing production costs, hospitals and clinics may see lower treatment prices, making therapies more accessible to patients.

For investors, the company’s focus on manufacturing efficiency rather than drug development offers a lower-risk, high-reward opportunity. For more on [related biotech developments](/top-10-biotech-startups-companies-watch-2026-6-december-2025). The ability to scale production and improve yields positions Tozaro as a key player in the biopharma supply chain.

Finally, for patients, Tozaro’s technology holds the promise of making life-saving treatments for conditions like leukaemia and Huntington’s disease more affordable and widely available.

Forward Outlook

Looking ahead, Tozaro’s success will depend on its ability to secure commercial partnerships and demonstrate the scalability of its ‘Smart Polymer’ platform. With £6 million in new funding, the company is well-positioned to enhance its manufacturing capabilities and attract downstream processing partners. However, challenges remain, including competition from other manufacturing innovators and the need to navigate regulatory complexities.

If Tozaro can achieve its goals, it could set a new standard for cost efficiency in gene therapy manufacturing, potentially influencing pricing strategies across the industry. As the global demand for gene therapies continues to rise, companies like Tozaro will play a critical role in shaping the future of medicine.

Key Takeaways

• Tozaro raised £6 million to scale its gene therapy manufacturing platform.
• The funding was led by Mercia Ventures and the Midlands Engine Investment Fund II.
• Tozaro’s ‘Smart Polymer’ platform aims to reduce costs and improve yields in viral vector production.
• The company’s technology could make life-saving therapies more accessible globally.

References

1. TechFundingNews
2. Bloomberg
3. Financial Times
4. More Biotech Coverage
5. Healthcare Industry Insights