Thanks to its revolutionary system design, privately-held molecular diagnostics company, Xagenic is set for an exciting new phase of growth after successfully raising $15 million (CAD) in new capital investment.
Xagenic is developing the Xagenic X1™ platform, a revolutionary diagnostic system designed to perform lab-quality molecular diagnostic tests in the physician office. With a time-to-result of 20 minutes or less, the system is poised to transform the way healthcare is delivered.
Each of the Series B investors has participated in this financing, including Domain Associates, CTI Life Sciences, BDC Capital and the Ontario Capital Growth Corporation.
Timothy Still, President & CEO of Xagenic Corp., says the additional funding will accelerate the firm’s development efforts in bringing its point-of-care diagnostic platform to market. “This investment round is a testament to the faith our existing investors have in the power of the Xagenic X1™ platform and the promise of our enzyme-free approach to molecular diagnostics,” he notes.
Xagenic’s rapid, lab-free, molecular diagnostic system affords a large market opportunity created by a significant, unmet medical need for point-of-care diagnostic solutions. Because of its highly scalable, consumables-driven business model, Xagenic is well-positioned to capitalize on this opportunity with a differentiated product offering and unique menu strategy.
Venture backers are excited by the potential Xagenic holds to provide a nearly immediate diagnostic result for patients “…There is an immense appetite for in-office molecular testing to better meet clinicians’ diagnostic needs and to tailor treatments,” says Jesse I. Treu Ph.D., Xagenic board chair and Partner at Domain Associates. “We are looking forward to the rapid expansion of the Xagenic X1 platform.”
In preparation for this next phase of growth, Xagenic has expanded its management team to include two seasoned industry veterans to help drive the company toward successful commercialization. In August, Randy Wilhoite, who had successful tenures at Siemens and Abbott Laboratories, joined Xagenic as Vice President of Operations and oversees manufacturing and operations. Earlier this year, Tom Waddell, Ph.D., MBA joined as Vice President of Development and leads the product development team.
Headquartered in Toronto with an office in San Francisco, Xagenic has been able to build out its infrastructure in downtown Toronto and attract staff as it has ramped up to its current size of more than 55 employees.
The company’s core detection technology was invented at the University of Toronto by Drs. Shana Kelley and Ted Sargent, who founded Xagenic in 2010 with local seed money provided by MaRS Innovation, OICR, HTX and OCE. Xagenic has successfully implemented several R&D partnerships with the University of Toronto, including a $6 million Genome Canada Funded Project titled, Development of Low Cost Testing Chip and Device for Hepatitis C Testing.
Still sees other advantages of being located in Toronto including being able to leverage business incentives such as the SR&ED federal tax incentive program and FedDev funding, to advance its R&D program.
In February, Xagenic was proud to receive acknowledgement from industry peers as the recipient of the Life Sciences Ontario (LSO) 2015 Life Science Company of the Year award at a gala in Toronto. Xagenic also won the 2014 Frost & Sullivan Point-of-Care Diagnostics New Product Innovation Leadership Award.
“This is an exciting time to be a contender in the point-of-care molecular diagnostics market, which is expected to be a $1.4 billion opportunity in the U.S. within 5 years,” says Still.
“We believe the winners in this market will be those companies that can commercialize a product that has the accuracy of lab-based tests; has a time to result of 20 minutes or less; has a low cost to run; and is easy to use. A differentiated product strategy is something that will help Xagenic, as other platforms initially focus on flu and strep testing.”
Xagenic is backed by Domain Associates, CTI Life Sciences, the Ontario Capital Growth Corporation, BDC Capital and Qiagen. For more information on Xagenic, visit Xagenic.com
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