Xagenic out of the lab with $20m

Xagenic, a University of Toronto spin-out developing a lab-free molecular diagnostic platform, has raised a $20m series B.

The round was led by new investor and venture firm Domain Associates, and joined in participation by existing backers venture firm CTI Capital and the Ontario Emerging Technologies Fund. Including a 2012 series A round, which saw participation from commercialisation firm MaRS Innovation and the separate MaRS Innovation Accelertor Fund, Xagenic has now raised $31m. Xagenic also received $1m in seed financing when it launched in 2010 from MaRS Innovation, the Ontario Institute for Cancer Research, the Health Technologies Exchange, and the Ontario Centres of Excellence.

Xagenic plans to use the latest funds support its product development whilst also applying for Food and Drug Administration approval for its molecular diagnostic platform.

The platform separates itself from its peers by being the first lab-free kit of its kind, providing results within 20 minutes. The technology will enable general practitioners and clinics access to molecular testing on site for the first time.

Bruce Cohen, executive chair at Xagenic, said: “Xagenic has developed a truly revolutionary diagnostic platform that will drive molecular testing out of the high complexity lab and to the point-of-care. The cost of adoption of the Xagenic platform is more than an order of magnitude lower than that of any other molecular diagnostic platform, which will finally make molecular testing approachable for physician offices and clinics.”

The deal will also see Domain partner Jesse True join Xagenic’s board of directors, who added: “Xagenic’s platform is unlike any we have seen to date. For many years, in an effort to meet customer needs at the point of care, companies have been unsuccessfully focusing their efforts on pushing the limits in automating PCR. Xagenic has taken a novel technological approach to solving the challenge of rapid, simple molecular diagnostics.  The easy-to-use, affordable desktop system and future menu of tests have the ability to transform the way critical patient diagnoses are made and acted upon.”

Note: This article has been updated to show that MaRS Innovation and MaRS Innovation Accelerator Fund are two seperate entities.