Molecular diagnostics company Indi has raised $30.25 million in a Series B and $17 million in non-dilutive debt financing provided by Life Sciences Alternative Funding. The round was led by Baird Capital and joined by Indi’s existing investors, InterWest Partners and the Wellcome Trust.
Indi® (Integrated Diagnostics), a molecular diagnostics company pioneering the use of blood-based proteomic tests, announced today it has raised $30.25 million from the closing of its Series B and $17 million in non-dilutive debt financing provided by Life Sciences Alternative Funding LLC (LSAF). The financing round was led by Baird Capital and joined by Indi’s existing investors, InterWest Partners and the Wellcome Trust. Indi’s first product, Xpresys™ Lung, is a breakthrough, molecular diagnostic blood test developed to provide physicians with an objective tool to address a major medical dilemma — the management of indeterminate lung nodules. The mixed equity and debt investment will be used to further commercialize Xpresys, which launched in late 2013, and to develop additional proteomic blood tests using Indi’s technology platform.
“Indi’s Series B represents our investors and management’s belief Xpresys Lung has the potential to achieve blockbuster status,” said Albert A. Luderer, Ph.D., chief executive officer, Indi. “Xpresys Lung was designed to aid physicians in managing lung nodules — helping to eliminate unnecessary invasive procedures on benign conditions; enabling payers to improve outcomes and save millions of dollars in unnecessary procedures; and minimizing patient anxiety. We are very excited to welcome our new backers, Baird Capital and LSAF. The partners at both firms have long track records of investing in medical diagnostics companies.”
As part of the financing, Michael Liang, Ph.D., partner with Baird Capital’s venture capital group, joins Indi’s board of directors. Indi also announced that Alexandria Venture Investments, the strategic venture arm of Alexandria Real Estate Equities, Inc., has joined the Series B as an investor.
“We are very pleased to help Indi take their early commercial success with Xpresys Lung to the next level,” said Liang. “Indi has taken their innovative proteomic technology and applied it to a massive unmet need: the high costs associated with over-diagnosing lung nodules. Their strategy is a perfect fit for Baird Capital’s focus on investing in companies who produce innovative technologies that address expanding market needs.”
Data from two studies supporting the technology behind Xpresys Lung were published in Science Translational Medicine on October 16, 2013. Click here to access the full study.
“We believe Xpresys Lung will play a significant role in helping physicians more effectively manage lung nodules — and Indi’s technology for blood-based diagnostics has the potential to become an important tool in multiple areas of health care,” said Steve DeNelsky, president, LSAF. “Our aim is to provide non-dilutive capital to outstanding commercial-stage life sciences companies in medical devices and diagnostics. We are delighted to play a role in Indi’s success.”
Today, it is estimated millions of pulmonary nodules are discovered each year; after traditional assessment protocols, which include biopsies and surgeries, most of these nodules are classified as benign. Xpresys Lung allows for the non-invasive assessment of pulmonary nodules in the 8-30 mm size range; traditionally, nodules of this size are associated with significant diagnostic uncertainty. Xpresys Lung provides physicians with objective information to identify nodules with a high probability of being benign, potentially reducing unnecessary invasive procedures that may be risky for the patient and costly to the healthcare system. In developing the test, researchers at Indi followed an innovative strategy: Xpresys Lung is designed only to assist physicians in identifying lung nodules likely to be benign, and is not intended to assist physicians with the identification of lung cancer.
The blood test measures the relative abundance of proteins from multiple pathways associated with lung cancer, using a highly sensitive analytic technique called multiple reaction monitoring mass spectroscopy (MRM-mass spec).
Indi (Integrated Diagnostics) is redefining molecular diagnostics and creating powerful new tools for physicians to non-invasively assess and more effectively manage complex diseases to improve patient outcomes, reduce complications, and lessen costs to the healthcare system. With the company’s first breakthrough test, Xpresys Lung, which measures multiple blood proteins and identifies lung nodules with a high probability of being benign, physicians have the potential to reduce risks and the need for unnecessary invasive procedures.
The company was co-founded in October 2009 by systems-biology pioneer Dr. Lee Hood, who recently received the National Medal of Science from the U.S. government. His groundbreaking research is based on a systems biology approach, which measures hundreds of protein biomarkers found in blood to report on the physiological state of the body’s 50 major organs, such as the lungs.
Investors include Baird Capital, InterWest Partners, Life Sciences Alternative Financing and the Wellcome Trust. Foundational intellectual property is exclusively licensed from the Institute for Systems Biology and Caltech. Learn more at www.indidx.com
About Baird Capital
Baird Capital makes venture capital, growth equity and private equity investments in strategically targeted sectors around the world. Baird Capital’s venture team invests in early and expansion-stage technology-enabled services and healthcare companies. Having invested in more than 270 companies over its history, Baird Capital partners with entrepreneurs and, leveraging its executive networks, strives to build exceptional companies. Baird Capital is the direct private investment arm of Robert W. Baird & Co. For more information, please visit www.BairdCapital.com
For more than 30 years, InterWest has partnered with exceptional entrepreneurs to build winning technology and health care companies. With more than 200 years of combined operating and investing experience, the firm’s investing team has raised $2.8B, completed more than 78 IPOs, and participated in nearly 75 upside acquisitions. As the firm invests InterWest X, a $650M fund, the InterWest team continues to believe that providing capital is just the beginning of a long-term collaboration with entrepreneurs to turn their vision into a thriving company.
About Life Sciences Alternative Funding LLC
LSAF provides non-dilutive, debt capital exclusively to fund the growth of commercial-stage life sciences companies with a primary focus on medical device and diagnostics companies. LSAF’s highly flexible structures provide long-term capital solutions ranging from $10 million to $50 million or more. LSAF is majority-owned by affiliates of the Perella Weinberg Partners Asset Based Value Strategy.
About the Wellcome Trust
The Wellcome Trust is a global charitable foundation dedicated to achieving extraordinary improvements in human and animal health. It supports the brightest minds in biomedical research and the medical humanities. The Trust’s breadth of support includes public engagement, education and the application of research to improve health. It is independent of both political and commercial interests.