Dia Beta Labs secures £1.2m to advance breakthrough obesity and type 2 diabetes drugs

Ulster University spinout Dia Beta Labs has raised £1.2m to accelerate the development of a breakthrough treatment for obesity and type 2 diabetes.

With more than 4 million people in the UK living with diabetes and £10 bn per year spent by the NHS on related care, there is a pressing need for more effective diabetes solutions.

Through combination with GLP-1 analogues, DBL’s lead candidate offers the potential for beneficial effects while also avoiding the issue of beta cell burnout, a problem that reduces the effectiveness of GLP-1 analogues over time.

Dr Ryan Lafferty, co-founder and CEO of Dia Beta Labs, developed the lead candidate during his PhD at Ulster University’s Diabetes Research Group. Dr Lafferty is supported by Executive Chair, Peter Simpson, who brings decades of experience in industrial drug discovery, scale-up, and leadership.

The investment from DSW Ventures and QUBIS leveraged additional funding from Innovate UK’s Future Economy Investor Partnership grant programme.

The funding will accelerate key pre-clinical data packages and scale-up efforts, positioning the company to seek further investment and partnerships as it moves towards commercialisation.

Lafferty said of the investment: “The widespread success of GLP-1s for weight management has certainly changed the management landscape in obesity, but high discontinuation rates mean that they represent an imperfect solution to a complex issue.

“With the funding secured in this round, we will be able to significantly progress our path to clinic for DBL’s lead candidates which target greater fat vs muscle loss and provide a much-required alternative to GLP-1s for the majority of users forced to discontinue GLP-1s due to intolerance.”

Doug Quinn, partner at DSW Ventures, commented: “The demand for effective treatments to address obesity and type 2 diabetes has grown massively in recent years. We are hugely encouraged by the data generated by Ryan and the team, building on years of research in the diabetes field.

“Through the combination of investment and grant funding, DBL is well-positioned to progress its science and pathway towards addressing these debilitating conditions.

“There is an impressive science and funding eco-system in Northern Ireland and with the imminent launch of our second SEIS fund we look forward to hopefully supporting new opportunities in the region.”

This is the first equity investment for QUBIS Ltd in a University of Ulster spinout company.

Brian McCaul, CEO at QUBIS commented: “Dia Beta Labs has qualified for investment due to participation in the QUBIS-backed ICURe programme, which ensures the company’s value proposition is underpinned by deep market understanding.

“Further to this, the quality of Dia Beta Labs’ data and the impressive management team provide great confidence for future success. QUBIS are proud to be forging stronger links with the Ulster University and to be supporting further growth and momentum in Northern Ireland’s burgeoning health and life sciences sector.”

Tim Brundle, Director of Research and Impact at Ulster University, commented: “I am delighted that Dia Beta Labs has not only received the financial backing to bring its metabolic disease management technologies to market, but was also the overall winner at the prestigious 2024 INVENT Awards.

“We look forward to working with the Dia Beta Labs team to ensure the company’s continued success.