Diaceutics raises further €4.45m for medicine platform

Diaceutics is driving global expansion and accelerating development of DXRX platform to get patients the right medicine at the right time.

Dundalk and Belfast-based life sciences player Diaceutics has raised a further €4.45m (£4m) in financing to accelerate the development of its DXRX platform which is understood to be the world’s first diagnostic network for precision medicine.

The financing came from Silicon Valley Bank’s UK branch and marks an increase from the last term agreed between the parties, when £2.5 million (€2.78 million) was raised to support working capital needs during 2018-2019.

“The average precision medicine drug is launched 4.5 years before its companion diagnostic test is readily available to the eligible patient population. We are actively working to reduce this lag time”

Developed by Diaceutics, DXRX will enable the Company to meet the need for a global standardised diagnostic process by offering an end-to-end solution for the development and commercialisation of precision medicine diagnostic testing.

It will significantly enhance Diaceutics’ service offering and enable it to meet the increased market demand being created by 1,000 new precision medicines currently in pharmaceutical company pipelines.

Underpinned by Diaceutics′ database of more than 227m patient records, the platform will enable the industry-wide collaboration required between pharmaceutical companies, laboratories and diagnostic companies to unlock the power of precision medicine and ensure every eligible patient gets the treatment they need, when they need it.

Changing the precision testing ecosystem

In June Diaceutics raised £20.5m (€22.9m) in a share placing on the London Stock Exchange ahead of the launch of the DXRX digital healthcare platform in the fourth quarter.

Last year Diaceutics went public on the London Stock Exchange, raising £17m (€19.5m).

Its latest 2019 annual results saw a 30pc increase in revenues to £13.4m (€14.9m), as well as gross profit growth of 52pc to £1.3m (€1.4m).

Earlier this month, Diaceutics also signed a new contract with a global pharma company with an initial contract value of $1.27 million. Diaceutics will provide the client with an end-to-end diagnostic development and commercialisation service which will help the company to ensure that everyone who should be tested for their new precision medicine therapies, is tested – and is tested efficiently

“Our research shows that currently half of patients are missing out on precision medicine drugs due to inefficiencies in the testing ecosystem,” said Philip White, chief financial officer of Diaceutics.

“In addition, the average precision medicine drug is launched 4.5 years before its companion diagnostic test is readily available to the eligible patient population.

“We are actively working to reduce this lag time, driving testing standardisation through our services, enabled by our DXRX platform. The DXRX network, in which more than £20 million has already been invested, has the potential to completely transform the way key precision medicine stakeholders collaborate and to solve the problems facing the global precision testing ecosystem,” White said.

Written by John Kennedy (john.kennedy3@boi.com)

Published: 26 August, 2020