Exosome Diagnostics Completes $20 Million Series A Financing
Funds to develop blood-based cancer molecular diagnostics for patient stratification and disease monitoring
NEW YORK, May 11, 2010 – Exosome Diagnostics, Inc., www.exosomedx.com, the developer of minimally-invasive molecular diagnostics, today announced that it has raised $20 million co-led by NGN Capital www.ngncapital.com, ("NGN") New York, and Forbion Capital Partners www.forbion.com, ("Forbion") Naarden, The Netherlands, to further develop and commercialize a series of next-generation body fluid based oncology diagnostics through its proprietary, exosome based technology platform. The trans-atlantic Company is establishing R&D and service operations in New York and Munich.
Exosomes are lipid-covered microvesicles shed by solid tumors into bodily fluids, such as blood and urine. Tumor exosomes contain nucleic acid sequences of a cancer's genetic material. In published studies, Exosome Diagnostics has demonstrated the ability to extract exosomes from the blood and urine of cancer patients, and detect with high sensitivity and specificity, key genes and gene mutations associated with a variety of cancers.
Exosome based molecular diagnostics allow for minimally invasive testing of cancer specific genes from standard blood and urine samples. This permits improved disease stratification and monitoring patient response through a course of treatment, leading to more precise understanding of drug efficacy and disease recurrence.
"We believe our exosome based technology offers a new medium for reproducible, high-quality extraction of RNA from blood," stated James McCullough, CEO of Exosome Diagnostics Inc. "Having NGN and Forbion, lead this financing round, provides us with the strong global network necessary to accelerate product development and provide a comprehensive molecular companion diagnostic program to pharmaceutical partners."
"Exosome Diagnostics has access to a proprietary and novel diagnostic platform capable of transforming today's diagnostic field. We believe it has the potential to become an integral part of a safer and more effective disease management," said Dr. Georg Nebgen, Managing General Partner at NGN Capital.
"The exosome technology platform combines great characteristics for cancer diagnostics and patient monitoring and is well positioned to have a major impact on cancer disease management in the future. We are delighted to join this experienced management team and are excited that this new platform will also be developed and rolled out in Europe using the proceeds of this financing round," said Geert-Jan Mulder, M.D., General Partner at Forbion Capital Partners.
Exosome Diagnostics, Inc. was formed in May of 2008 following completion of a exclusive license from Massachusetts General Hospital to commercialize exosome technology. Parallel to this financing round the company incorporated Exosome Diagnostics GmbH, which is a wholly owned subsidiary of Exosome Diagnostics, Inc. and will serve as the European center for development and services.
The Board of Directors of Exosome Diagnostics will initially consist of five members including two representatives from NGN Capital, Dr. Georg Negben and Dr. Peter Johann; two representatives from Forbion Capital including Geert-Jan Mulder, M.D; and the Chief Executive Officer James McCullough and continuing board member Joe Boystak. Dr. Bernard Peperstraete from NGN and Dr. Marco Boorsma from Forbion are appointed as Observers to the Board.
About Exosome Diagnostics
Exosome Diagnostics, Inc. is a developer of proprietary body-fluid based molecular diagnostic tests with applications in oncology. The company's core technology is based on the discovery that circulating nanovesicles called exosomes contain unique genetic markers that can be reliably harvested from blood and urine and used diagnostically. For more information, please visit www.exosomedx.com.
About NGN Capital LLC
NGN Capital is a global healthcare venture capital investment firm with $430MM of funds under management. NGN has investment capabilities across a geographically diversified and broad spectrum of healthcare segments, including drug products, medical devices, and healthcare services. NGN has offices in New York, NY and Heidelberg, Germany. For more information, please visit www.ngncapital.com.
About Forbion Capital Partners
Forbion Capital Partners is a dedicated Life Sciences venture capital firm with offices in Naarden, The Netherlands, and Munich, Germany. Forbion invests in life sciences companies, particularly in world-class drug discovery & development as well as med tech companies addressing substantial unmet medical needs. Forbion's investment team of nine investment professionals has built an impressive performance track record since the late nineties with successful investments in Rhein Biotech, Crucell, Neutec, Glycart, Borean, Impella, Alantos, Acorda, Fovea and PanGenetics. Current assets under management exceed EUR 375M, split between three active funds and comprising some 27 promising portfolio companies. Forbion Capital Partners Fund II is supported by the European Investment Fund through its ERP and LfA facilities. Finally, Forbion co-manages Biogeneration Ventures, an early stage fund focused on (academic) spin-outs and seed investments in the Netherlands. For more information, please visit www.forbion.com.
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