A University of Oxford spin-out has launched with £16.5 million to work on cancer therapies.

Yellowstone Biosciences will develop soluble bispecific TCR-based therapies for cancer, which direct the body to attack cancer cells.

Having spun out from the University of Oxford in June, it has been supported by Oxford University Innovation.

The latest phase in its journey sees the company taking 8,000 sq ft of laboratory and office space at ARC (Advanced Research Clusters) Oxford.

This hub of science and technology houses more than 35 organisations, including Oxford Biomedica, which manufactured the AstraZeneca covid vaccine.

Yellowstone is built around the research of professor Paresh Vyas, an academic, clinician and specialist in acute myeloid leukaemia.

Professor Vyas, co-founder and chief scientific officer of Yellowstone, said: "Frequently expressed antigens that can be targeted therapeutically are notoriously difficult to find but, through two decades of research, we have identified a new class of targets that have potential to treat cancer and extend patient’s lives.

"We believe that our technology has the potential to selectively kill tumour cells, whilst sparing healthy cells, in a range of cancers."

Securing £16.5 million in Series A funding from lead investor Syncona Limited, Yellowstone will progress operational build, lead programme and potential pipeline expansion from their new ARC Oxford headquarters.

Senior director of leasing at ARC, David Williams, said: "We’re delighted to welcome Yellowstone Biosciences to our thriving life sciences cluster at our ARC Oxford Campus.

“Given the rapid pace of growth of research-intensive businesses in Oxford and spinouts from Oxford’s universities, it’s crucial that we deliver a consistent, diverse and flexible supply of laboratory and technical space, to support both established companies and those in their infancy.

"We look forward to supporting Yellowstone Biosciences on their exciting growth journey as they develop ground breaking therapies to treat cancer and transform patients' lives."

Dr Benedicte Menn, senior investment manager, Oxford University Innovation, added: "With ambition to become a world class UK company, Yellowstone is our latest spinout from the University of Oxford.

"The company has potential to treat and extend the life of patients with different forms of cancer, starting with acute myeloid leukaemia.

"We’re delighted that Yellowstone and Syncona are partnering on this launch and look forward to tracking the progress of the pipeline.”

As well as Oxford Biomedica, ARC is home to MiroBio, which is developing antibody drugs for autoimmune disorders, and OMass Therapeutics, which is identifying new medicines against highly validated but inadequately drugged targets.

The site will nearly double in size as new laboratories, cleanrooms, offices and research and development facilities are built at the Oxford city campus.