Diaceutics raises €22.9m in share placement

Fast-moving Irish medtech Diaceutics is preparing for a global diagnostic product launch in Q4.

Dundalk and Belfast medtech data firm Diaceutics has raised £20.5m (€22.9m) in a share placing on the London Stock Exchange ahead of the launch of a digital healthcare platform in the fourth quarter.

Last year Diaceutics went public on the London Stock Exchange, raising £17m (€19.5m) and according to its most recent annual results gross profits went up 52pc in 2019, reaching £10.3m compared to £6.8m the previous year. Revenues, meanwhile, reached £13.4m.

“Our clients in the pharmaceutical industry are facing many challenges with their traditional sales and marketing approaches due to the Covid-19 pandemic”

In recent months Diaceutics revealed plans to invest €26m in a network to meet a surge in demand for medical test and lab data.

DXRX – The Diagnostic Network – will connect 2,500 laboratories around the world to a precision medicine network.

The latest funding round will be used to strengthen the company’s balance sheet in anticipation of a growth in demand for its services.

The company placed 14,137,931 new Ordinary Shares with new and existing investors.

The data-driven future of medicine

Diaceutics was founded by Peter and Ryan Keeling and has emerged as the leading provider of precision-testing data and commercialisation services for the global pharmaceutical industry.

DXRX addresses stakeholder collaboration problems which have led to a suboptimal testing ecosystem and has resulted in most precision medicines reaching only 50pc of eligible patients in oncology.

DXRX will integrate a growing database of 227m patient testing records and more than 2,500 laboratories from what is currently a highly fragmented testing ecosystem. This broadened service offering is expected to enable Diaceutics to derive greater revenue per client, with the opportunity for additional success-based payments to be received.

“Our clients in the pharmaceutical industry are facing many challenges with their traditional sales and marketing approaches due to the Covid-19 pandemic,” said Julie Goonewardene, chair of Diaceutics plc.

“There is emerging evidence that the digital transformation of many operations will become a feature of their commercial operations in the future. The new DXRX platform is on track for launch later this year and will provide access to a diagnostic network to launch and commercialise their new precision tests that are in development or are about to be introduced.

“In taking this additional funding we not only strengthen our balance sheet but also ensure that we can, if required, dramatically increase resources around the new DXRX platform in response to any additional demand from our clients. With this platform on track for launch later this year, I am incredibly excited by the opportunities we have to create significant long-term value for all our stakeholders,” said Goonewardene.

“In taking this additional funding we not only strengthen our balance sheet but also ensure that we can, if required, dramatically increase resources around the new DXRX platform in response to any additional demand from our clients. With this platform on track for launch later this year, I am incredibly excited by the opportunities we have to create significant long-term value for all our stakeholders.”

Pictured at top: Diaceutics CEO and co-founder Peter Keeling

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

Published: 11 June, 2020