Wireless capsule endoscopy (WCE) enables the detection and diagnosis of in ammatory bowel diseases such as Crohn's disease and ulcerative colitis. However treatment of these pathologies through the administering of therapy can only be achieved through conventional means. This paper describes the next generation wireless capsule endoscopy which has increased functionality to allow for targeted drug delivery in the small intestinal tract. A prototype microrobot fabricated in Nylon 6 is presented which is capable of resisting natural peristaltic pressure through the deployment of an integrated holding mechanism and delivering targeted therapy. The holding action is achieved by extending an \anchor" spanning an effective 60.4mm circumference, for a 11.0mm diameterWCE. This function is achieved by a mechanism that occupies only 347.0mm3 volume, including mechanics and actuator. A micro-positioning mechanism is described which utilises a single micromotor to radially position then deploy a needle 1.5mm outside the microrobot's body for the purpose of delivering a 1 ml dose of medication to a targeted site. An analysis of the mechanics required to drive the holding mechanism is presented and an overview of micro-actuators and the state of the art in WCE is discussed. The novel mechanisms offer increased functionality to WCE. It is envisaged that this increased ability to perform targeted therapy will empower the next generation of WCE to help diagnose and treat pathologies of the GI tract.