Molecular Detection Inc. has raised $1.4 million in equity to develop a series of tests for infectious diseases, according to a regulatory filing. with the Securities and Exchange Commission.
The company says its Detect-Ready technology offers a more quick and accurate means of diagnosing diseases. Its first product tests nasal samples for MRSA, a staph infection that has become resistant to the antibiotics typically used to treat such infections.
The company has scored a couple wins in recent months, signing two deals with European distributors for its MRSA test. In October, it landed a (pdf) $3.3 million Series C round and hired a new CEO, Todd Wallach.
Molecular Detection characterized the $1.4 million fundraise as “part of a follow-on” to the Series C round. The company is looking to bring the amount up to $2.5 million, according to the regulatory document.
The company will use the new funding to develop new tests using its Detect-Ready technology, Wallach said.
Molecular Detection is also developing a test for C. difficile, a type of bacteria that can cause diarrhea and colon inflammation, and another test for MRSA in the blood.
The financing was led by Philadelphia-based MentorTech Ventures and included Robin Hood Ventures, Elm Spring Holdings and the Mid-Atlantic Angel Group Fund — all existing investors in Molecular Detection.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Founded in 2007, 18-employee Molecular Detection has raised at least $7 million to date, Wallach said.
Wallach hopes to have the MRSA test on the U.S. market sometime in the first half of 2011. A clinical trial at multiple sites is already under way, he said.
The nasal-swab MRSA test received European regulatory approval in the fourth quarter of last year. The test is available in the United Kingdom, Germany, Ireland, Switzerland and Austria.
