PulmoBioMed, a North East England university spin-out specialising in non-invasive respiratory diagnostic technology, has ceased trading and entered creditors’ voluntary liquidation after its primary financial backer withdrew support. All 10 employees of the Tyneside-based life sciences company have lost their jobs as a result.

Founded in 2020 under Northumbria University’s spin-out programme, PulmoBioMed developed a handheld breath test intended to aid in the diagnosis and monitoring of asthma, pneumonia, and other lung conditions. The device was promoted as a substantially cheaper and less invasive alternative to endoscopy, costing approximately 40 times less. The firm sought to target international markets, including the United States, following a period of product development supported by various funding rounds.

The company initially operated from Northumbria University before relocating to the Biosphere innovation centre at Newcastle Helix, a hub for life sciences firms. PulmoBioMed was led by molecular biologist Dr Sterghios Moschos, notable for developing a point-of-need Ebola virus test during the 2015 West African outbreak.

Over its operational period, PulmoBioMed secured several key milestones, including registration with the U.S. Food and Drug Administration (FDA) and CE marking—necessary regulatory approvals for medical devices in the US and EU markets. In 2024, the company raised £1.4 million in funding, which included £700,000 in government grants designated to commercialise its lung testing technology.

However, the company’s financial situation deteriorated sharply in March following the unexpected withdrawal of support from a major funding partner. Faced with this loss, company directors explored various strategies to secure alternative investment, including a final fundraising effort that generated some additional commitments but ultimately fell short of the capital required to sustain operations.

With insufficient funding to continue, the directors determined the business could no longer trade, leading to the redundancy of all staff and the appointment of liquidators earlier this month. Shaun Hudson and Allan Kelly of FRP Advisory are managing the liquidation process. Hudson noted that while PulmoBioMed had promising technology and regulatory approvals, its heavy reliance on external investment common to early-stage medical technology firms contributed to its inability to remain solvent after losing key financial backing.

Efforts are underway to market and sell PulmoBioMed’s intellectual property and remaining assets, with Gordon Brothers engaged to assist in the process.