Shine Medical has increased its lifetime funding to around $283m as it prepares to launch medical isotope production plants leveraging fusion-based neutron generators invented at UW-Madison.
Shine Medical, a US-based medical isotope production technology company spawned from University of Wisconsin (UW)-Madison research, has closed a $50m round with unnamed funds managed by investment firm Oaktree Capital Management.
Founded in 2010, Shine Medical builds production plants for manufacturing chemical isotopes with medical applications using fusion-based neutron generation technology owned by UW-Madison spinout Phoenix.
The company’s first facility will manufacture an isotope called molybdenum-99 whose radioactive byproduct, technetium-99m, has applications in diagnostic imaging to detect disease and study the structure and function of organs.
Shine Medical claims the plant will possess enough capacity to produce more than a third of global molybdenum-99 demand, helping to tackle routine shortages owed to the antiquated state of many existing plants.
It also has plans to produce a number of other isotopes including lutetium-177, a radiotherapy for neuroendocrine cancers, and iodine-131, used to treat thyroid malignancies and for diagnostic purposes including assessing liver function.
Shine will use the capital to drive the construction of its first production facility and to continue its commercialisation strategy.
Both Shine Medical and Phoenix were founded by former UW-Madison graduate student Greg Piefer to advance work conducted alongside Gerald Kulcinski, now professor emeritus of engineering physics and director of the university’s Fusion Technology Institute.
While Phoenix remains focused on the core technology, Shine Medical’s business has approval from US nuclear regulatory Nuclear Regulatory Commission to operate the manufacturing plants and has relationships with companies in the molybdenum-99 supply chain.
Shine Medical has now raised about $283m in equity and debt financing, according to press releases, media reports and regulatory filings.
The company received $18.1m in what was reported as series C financing made up of equity, options and other securities in June 2019, according to a filing, after securing a $150m commitment over five years from healthcare-focused investment firm Deerfield Management in November 2018, though earlier reports suggest the agreement was for debt rather than equity.
Another filing states Shine Medical had previously obtained about $29.4m in debt, options and other securities from undisclosed investors in early 2017.
