MODE Diagnostics attracts over £1,100,000 funding
Released: Monday 2nd July 2012
MODE Diagnostics attracts over £1,100,000 funding to develop health & wellness home diagnostic products
MODE Diagnostics, a University of Glasgow spin-out company, has recently secured a further £975,000 equity investment together with £136,000 in business and R&D regional grants. This funding will support the Company’s development of novel health screening products for use in the home.
MODE’s target market, the self-testing market, is currently worth $11b and is developing rapidly in response to the global challenges in funding and delivering healthcare.
As healthcare costs continue to spiral, the medical and economic benefits of early disease diagnosis and monitoring are now a clear solution to curtailing costs and delivering improved medical outcomes. This is now driving the demand for novel, medically informative, easy to use testing devices that can screen for early indicators of disease.
The health and wellness screening products being developed by MODE are overcoming the significant technical challenges of this market and are being designed to allow consumers to check themselves for early indications of a range of diseases including various cancers and infectious diseases.
The fund-raising attracted a strong portfolio of investors including return investments from IP Group plc and Scottish Investment Bank. New investors included London based Parkwalk Advisors, Glasgow University Holdings, current Directors and Management and the syndicated investor Kelvin Capital.
This new funding will allow MODE to develop a pipeline of consumer focussed, easy to use products and bring together an experienced management team with a strong track record of commercial delivery of novel products.
MODE’s products are based upon patented technology that enables rapid, highly selective and sensitive detection of defined markers of disease. The technology provides quantitative results in minutes and is suitable for use in low-cost, handheld devices similar in size to today’s ipods.
Dr Paul Heaney, MODE’s CEO said: “MODE is all about giving health-conscious consumers products that will let them monitor and screen their health and benefit from the improved outcomes of treating diseases at an early stage”.
“Our products give early warnings and this can lead to highly successful early medical treatments. We are delighted that our investors share our belief in the company’s novel products and our potential to build a strong and successful international company”.
Dr Brian Horsburgh, Head of Life Sciences at IP Group plc, said: “MODE’s technology and products are highly innovative and specifically developed to address the needs of the rapidly expanding markets in consumer health and wellness. Despite the current difficult investment climate MODE’s clear route to market, commercially attractive products and proven management provide a compelling business opportunity”.
MODE’s first product, called bSURE, has been specifically developed to be a consumer-friendly, easy to use test that will assess bowel health and aid the early detection of bowel cancer.
Bowel Cancer is the third most common cause of cancer deaths globally and is responsible for 16,000 deaths per year in UK. This is despite the fact that when detected early bowel cancer is one of the most easily treatable and curable cancers.
Alastair Kilgour of Parkwalk Advisors added: “MODE’s first product is now well advanced and the recent financing will push this closer to market while also allowing MODE to develop further products for other cancers and infectious diseases”.
Kerry Sharp, acting head of Scottish Enterprise’s Scottish Investment Bank said: “Mode Diagnostics is an ambitious, innovative Scottish company developing new healthcare products in the diagnostics market. We work closely with the company through our investment and account management approach supporting it in areas such as strategy development, market research, innovation and entering new overseas markets.
Today’s announcement marks a significant milestone for the company and we’re pleased to be supporting its growth with further investment through our Scottish Co-investment Fund. We look forward to continuing to work closely with the company as it delivers its long term growth plans.”
MODE Diagnostics Ltd
Dr Paul Heaney
+44 (0) 771-771-4606
+44 (0) 141 330 4831
Notes to Editors
About MODE Diagnostics Ltd
MODE is a product development phase company preparing a pipeline of user friendly and clinically informative diagnostic products for the Over-The-Counter (OTC) retail pharmacy market. MODE’s focus is Health & Wellness, specifically in Cancer & Infectious Disease, and will provide retail customers access to early detection and disease management products. MODE’s proprietary electrochemical detection technology enables high precision diagnostics using robust proven sensors that can be integrated into easy to use handheld test devices that are designed for low cost, high volume manufacturing. MODE has assembled a strong management and advisory team with extensive experience in developing and commercialising pioneering diagnostic products. MODE’s rapid commercialisation approach engages both technology and sales & marketing partners to maximise market impact and reach. For more information see website, www.modedx.com
About IP Group PLC
IP Group is an intellectual property (IP) commercialisation company that specialises in commercialising university technology. Founded in 2001, IP Group listed on AIM in October 2003 and moved to the Official List in June 2006.
IP Group has formed long-term partnerships with ten universities - the University of Oxford, King's College London, CNAP/University of York, the University of Leeds, the University of Bristol, the University of Surrey, the University of Southampton, Queen Mary (University of London), the University of Bath and the University of Glasgow.
The Company's portfolio is diverse with exposure to five main sectors - Energy & Renewables, Medical Equipment & Supplies, Pharma & Biotech, IT & Communications and Chemicals & Materials. To date, thirteen portfolio companies have listed on the AIM market of the London Stock Exchange, one on PLUS Markets and there have been four trade sales.
For more information, please visit our website at www.ipgroupplc.com.
About Scottish Enterprise
Scottish Enterprise is Scotland's main economic development agency and aims to deliver a significant, lasting effect on the Scottish economy. Our role is to help identify and exploit the best opportunities for economic growth. We support ambitious Scottish companies to compete within the global marketplace and help build Scotland’s globally competitive sectors. We also work with a range of partners in the public and private sectors to attract new investment to Scotland and to help create a world-class business environment.
The Scottish Investment Bank is a division of Scottish Enterprise which operates Scotland-wide, in partnership with Highlands and Islands Enterprise. It operates a suite of funds including; The Scottish Seed, the Scottish Co-investment, the Scottish Venture and the Scottish Loan Fund to support Scotland’s SME funding market to ensure that businesses with growth and export potential have adequate access to growth capital, see www.scottish-enterprise.com/sib
About Parkwalk Advisors
Parkwalk Advisors brings together experienced investment professionals into a diverse, experienced and expert team with a mix of skills gained across a range of sectors in both multinational corporations and entrepreneurial start-ups.
The Parkwalk Team have a depth of knowledge in advising, arranging and investing in private and public companies. They have extensive experience in arranging private equity investments and include corporate financiers, brokers, traders and sector specialist analysts.
The Principals of the Firm have, over the years, established an excellent network of colleagues, managers and entrepreneurs across the specialist UK technology sector, particularly in the innovative University spin-out sector.
Parkwalk is able to draw upon its skills, experience and expertise to advise on a variety of strategic and transactional matters.
Parkwalk is authorised and regulated by the Financial Services Authority and a member of The London Stock Exchange.
About Kelvin Capital
Kelvin Capital specialise in financial investment, investment opportunities and practical investment advice for small growing companies with international ambition, high growth achievement and returns. Please see www.kelvincapital.com and contact firstname.lastname@example.org