Acquisition enables immediate presence in USA, a key market for bloodstream infection diagnosis and other applications
LONDON, UK and ALBUQUERUE, NM, USA – 19 January 2015 – DNA Electronics Ltd (DNAe), the inventors of semiconductor DNA sequencing technology and developers of a new, revolutionary point-of-need test for blood infections, has on 15 January 2015 completed the acquisition of the entire issued share capital of nanoMR Inc. (nanoMR), an Albuquerque based developer of a novel system for rapid isolation of rare cells in the bloodstream by way of a merger under the laws of Delaware, USA. Led by Arnold Freedman and Dr. Oded Ben-Joseph, Outcome Capital, LLC acted as Exclusive Financial Advisor to nanoMR in the transaction.
Integration of the two organizations is effective immediately, creating an 80+ strong team with facilities in the UK and the USA that will operate under the DNAe brand. The acquisition is a key strategic milestone for DNAe, enabling the Company to integrate nanoMR’s unique immunomagnetic Pathogen Capture System (PCS) with its own Genalysis® PCR and semiconductor-based DNA sequencing technology to create a complete blood-to-result solution.
The PCS can target multiple rare bacterial and fungal cells from bloodstream infections at levels of 1 cell/mL or lower in less than 30 minutes, making it the ideal sample preparation technology for DNAe’s rapid point-of-need diagnostic tests. DNAe’s proven semiconductor DNA sequencing technology is already licensed to Thermo Fisher and is the core of the Ion Torrent™ Next Generation Sequencing (NGS) systems as well as to Geneu, a company selling the world’s first in-store DNA test for personalised skincare.
DNAe is developing an integrated instrument and consumable cartridge that will deliver results directly from blood in 2-3 hours. Its first diagnostic product, a test for the rapid diagnosis of bloodstream infections, will identify pathogens in the blood as well as antimicrobial resistance genes. This will allow clinicians to treat patients with appropriate medication before the onset of sepsis, saving lives and reducing the time spent in hospital.
Professor Chris Toumazou, Chairman and CEO of DNAe said: “The acquisition of the nanoMR technology and team underscores our commitment to developing a complete point-of-need solution for diagnosis of infectious diseases, particularly those that cause sepsis, where speed and DNA-specific information can make the difference between life and death. nanoMR brings a game-changing technology, a wealth of scientific expertise and the potential for exciting new applications to DNAe.”
The combined company will continue to work on nanoMR contracts including the development of PCS and assays for potential infectious agents for the US Department of Health and Human Services Biomedical Advanced Research and Development Agency (BARDA) and will further invest in the development of PCS from its US facility. The UK-based operation will focus on developing Genalysis® technology as part of an integrated system.
nanoMR’s CEO Victor Esch said: “By combining our PCS technology with the powerful molecular diagnostic technology developed by DNAe we are in a strong position to create a blood-to-result system with unmatched versatility and performance. DNAe is the perfect match for nanoMR and we look forward to a great future as part of the combined team.”
DNAe is an ambitious company led by a highly experienced management team. It has strong financial backing, including major shareholder Genting Berhad, a Malaysian-based global investor with a growing portfolio of cutting–edge healthcare companies.
Tan Sri Lim Kok Thay, CEO and Chairman of Genting Berhad said: “This is a major value-creating deal for DNAe. The development of these ground-breaking technologies to address the huge unmet medical need for rapid point-of-need testing for sepsis, as well as other applications, makes it a stand-out company that we are proud to support. We are convinced that the acquisition of the nanoMR technology and the drive and commitment of the management team to accelerate development towards commercialisation will make a major contribution to the improvement of patient care.”
About DNAe – www.dnae.co.uk
DNA Electronics Ltd. is commercialising its pioneering semiconductor DNA sequencing technology for healthcare applications where rapid near-patient live diagnostics is needed to provide actionable information to clinicians, saving lives by enabling the right treatment at the right time.
Through a non-exclusive license to Thermo Fisher, DNAe’s semiconductor sequencing technology is the core of the Ion Torrent™ Next Generation Sequencing (NGS) systems, proving its performance at the laboratory scale.
DNAe’s Genalysis® system is a sample-to-result genomic analysis platform based on semiconductor sequencing. Built into a compact device for use at the point-of-need, the system will diagnose accurately and rapidly what infection a patient has, providing the clinician with actionable information to help select the appropriate antibiotics to treat the disease. DNAe’s initial focus is on infectious disease diagnostics, where speed and DNA-specific information can make the difference between life and death. The Company’s first test will be a diagnostic for blood stream infections for use in the management and prevention of sepsis.
About nanoMR – www.nanomr.com
Founded in 2007 by researchers from the University of New Mexico, nanoMR is an early-stage life sciences company developing novel diagnostic systems for the rapid isolation of rare cell types, including bacterial and fungal pathogens, directly from blood and other matrices.
nanoMR’s products use an immunomagnetic capture process that can deliver either viable cells for phenotypic analysis, or extracted DNA for molecular analysis by different DNA-based platforms, including PCR, hybridization and DNA sequencing. The Company’s first product addresses the blood culture market, demonstrating identification of blood-borne infections in less than two hours, compared with days required for conventional blood-culture-based systems.
About Outcome Capital – www.outcomecapital.com
Outcome Capital is a unique investment banking firm that provides middle-market growth companies in the life sciences, healthcare services and technology markets with a value-added client-centric approach to merger, acquisition and corporate finance advisory services. The firm utilizes its proven approach to value enhancement by assisting boards and management teams in navigating both the financial and strategic markets and in implementing the best path for success. Outcome Capital’s strength stems from its unique ability to draw on its wide range of operational, strategic and private equity experience, its expertise across the value building life-cycle and its broad industry relationships. The professionals at Outcome Capital take pride in their ability to help their clients to make well-informed strategic decisions and recognize the full value created by their vision.