Novartis Venture Funds has led a £16.9 million Series B financing for Atlas Genetics that will be used to accelerate the launch of a new product for the testing of sexually transmitted diseases (STDs).
Novartis Venture Funds has led a £16.9 million Series B financing for Atlas Genetics that will be used to accelerate the launch of a new product for the testing of sexually transmitted diseases (STDs).
Diagnostic company Atlas, which is developing ultra-rapid point-of-care tests for a range of infectious diseases, has secured the investment on terms that it will be drawn down over three years and primarily be used for the global launch of the product VeloxTM next year.
VeloxTM is a molecular diagnostic system for the ultra-rapid diagnosis of a broad range of infectious diseases using either nucleic acid or immuno-assays.
Atlas claims the patent-protected system will make it possible, for the first time, to carry out infectious disease tests in primary care clinics and GP surgeries that are as accurate as those carried out in hospital laboratories. This will help clinicians commence treatment promptly and ensure much improved compliance, particularly in the area of STDs where a significant proportion of patients fail to return for test results or follow on treatment.
Founded in 2005, the company has its head office in Bristol and laboratory facilities in Trowbridge, Wiltshire.
The VeloxTM system consists of an inexpensive test machine into which a disposable cartridge containing a patient sample is inserted. Atlas aims to launch the product in Europe around the end of 2012, followed by roll-out in the US, pending regulatory approvals.
According to the European Centre for Disease Prevention and Control, chlamydia is the most frequently reported bacterial STD, with prevalence rates in young people between 5-10 per cent. Gonorrhoea is the second most commonly reported STD. The worldwide in vitro diagnostic market for infectious disease testing is estimated to be worth US$9 billion (£5.5 billion) by 2012.
The newly announced financing follows a £1.5 million round in February this year supported by Consort Medical and other investors. Existing backers include YFM Equity Partners, Braveheart Investment Group, Wyvern Asset Management, the Crescent Seedcorn Fund and private investors.
Atlas chief executive Dr John Clarkson, comments, ‘This investment syndicate led by Novartis Venture Funds brings a wealth of experience in the healthcare sector and an extensive network of contacts in the diagnostics industry.’
