A biotech company is “coming home” to Oxford by opening a new base near the city.

The firm, e-Therapeutics, is currently based in Newcastle but bosses have targeted expansion following a £16.6m cash injection raised by selling shares and a desire to continue developing its technology which first originated in Oxford University’s physiology laboratories in 1991.

Chief executive Malcolm Young said: “We raised a lot of money and that which has given us the opportunity to put our discovery platform on a world class footing.

“What we have learned is that we need quality people and there are three places in the world that specialise in our technology — Massachusetts, San Diego and Oxford.

“As a result, the decision to move is based on being able to bring in world class staff.”

Prof Young added that a location for the firm had been found near the city and that about ten staff would either be recruited or be relocate to Oxford by October.

e-Therapeutics specialises in what is called network pharmacology which looks at how networks of proteins can affect the function of cells and how they can be targeted, for example when cancer cells develop.

The research also allows monitoring of new drugs to identify whether they are suitable for the human body at a very early stage and can also be applied to psychiatric treatments.

The company was started ten years ago and is listed on the Alternative Investment Market of the Stock Exchange.

Result for the year to January 31 show it made a net loss of £2.3m but, thanks to the investment, with £15.8m of cash available.

Prof Young said: “With numerous trials set to report over the next two years and the prospect of new outputs from our discovery platform, we believe we are well placed to generate substantial value both in the near term and beyond.”