Diaceutics plans to use the fresh capital to further develop its DXRX platform – a diagnostic network for precision medicine.
Today (26 August), Dundalk-based medtech company Diaceutics announced that it has raised €4.45m in funding from the UK branch of Silicon Valley Bank (SVB).
This marks an increase on the last term agreed between the two parties, when €2.78m was raised to support working capital needs between 2018 and 2019. In 2018, the company raised a total of €4.3m in financing from WhiteRock Capital Partners and SVB.
Diaceutics provides diagnostic testing and data analytics to pharmaceutical companies. The funding will be used over the next three years to provide additional working capital for the Irish company as it continues its global expansion and accelerates the development of its DXRX platform, which is a diagnostic network for precision medicine.
Andrew Hunter, managing director of SVB, said: “We are excited to continue our relationship with Diaceutics and to further support their team’s next stage of growth. With a strong global client base, increased geographic expansion and the development of the DXRX platform, Diaceutics is very well placed within the rapidly evolving precision medicine market.”
Hunter added that SVB is “committed” to working with more innovative companies in Ireland.
Through the development of DXRX, Diaceutics hopes to offer an end-to-end platform for the development and commercialisation of precision medicine diagnostic testing.
The company said that this platform will “significantly enhance” its service offering and enable it to meet the increased market demand being created by 1,000 new precision medicines that are currently in pharmaceutical company pipelines.
According to Diaceutics, the average precision medicine drug is launched four-and-a-half years before its companion diagnostic test is readily available to the eligible patient population. With DXRX, the company is working to reduce this time frame.
Using Diaceutics’ database of more than 227m patient records, the platform will enable industry-wide collaboration between pharmaceutical companies, laboratories and diagnostic companies, which will work together to try realise the potential of precision medicine and ensure that eligible patients get the treatments they need.
Commenting on the company’s latest funding news, Diaceutics chief financial officer Philip White said: “We are delighted to secure this funding from SVB which will help to streamline the launch of precision medicine drugs by ensuring that laboratories are ready to accurately and efficiently test for each now drug on the day that it is launched.
“SVB has always been hugely supportive of our vision to make this a reality and help patients to benefit from better testing and better treatment. We look forward to seeing what the next three years hold, with their backing.”
Diaceutics was listed on the alternative investment market (AIM) of the London Stock Exchange in March 2019. Last year, the company’s annual results saw revenue increase by 30pc to €14.9m, while gross profit grew by 52pc to €1.4m.