Endomagnetics Secures Funding for Expansion and Product Launch
Product News Aug 10, 2011
Endomagnetics, the company developing advanced magnetic sensing technology for use in cancer treatment, has closed a funding round worth £1.2 million ($2 million) that provides a strong boost to the capabilities of the company and the commercialization of its technology.
Sarum Capital, advising Sarum Investment SICAV plc, an oncology focused venture fund, led this investment round alongside existing investors UCL Business plc, Bloomsbury Bioseed Fund and Sussex Place Ventures.
The Sarum fund specializes in investments in the oncology sector, from diagnostics and medtech through to therapeutics and aftercare, and supports companies that it considers to have the highest potential for solid growth and success.
The funds will be used for team expansion and to accelerate the market introduction of SentiMag™ and its associated magnetic tracer.
SentiMag™ is an ultrasensitive hand-held probe that is capable of detecting specialized, subcutaneously injected magnetic materials and is used to locate lymph nodes to support the diagnosis and treatment of cancer.
Interest in the device has been very strong from the medical community, who see benefits in eliminating the need for, and inconvenience of using radioisotopes in the process of sentinel lymph node biopsy (SLNB).
One consequence is the much wider availability of the SLNB technique in regions with supply chain limitations for radioisotopes. In China for example, it is estimated that less than 5% of the population currently has access to this ‘best practice’ technique.
“Endomagnetics sits in our sweet spot, with its clear regulatory pathway and near-term revenue position”, said Jonny Laughton, Partner at Sarum Capital. “Endomagnetics’ system offers a compelling alternative to nuclear isotopes in cancer staging, and the technology has been shown in clinical trials to be an effective and attractive technology in use.”
“We are delighted to have Sarum joining this important funding round”, said Dr Eric Mayes, CEO of Endomagnetics. “Sarum brings an impressive knowledge network and, alongside our existing investor base, has provided the capital we need to realise the regulatory approval of our magnetic tracer and expand our capabilities in advance of a product launch.”
John Brimacombe, Partner at Sussex Place Ventures, commented: “We have been very pleased with the progress of the company since our previous investment in September 2010, and we believe that Endomagnetics is well on track to meet the demand they are seeing from physicians.”
Earlier this year, Endomagnetics was selected as one of the top twenty UK healthtech companies to take part in the Future Health Mission to the USA.