Rheonix Raises $28.6 Million to Further Expand MDx Efforts
News Oct 23, 2015
Rheonix Inc. has raised $28.6 million to further expand the company’s commercialization efforts for its molecular testing platforms, the Encompass MDx® and Encompass Optimum™. The investment will also enable new product development and fund existing business needs. The funds are a combination of investments from existing international and domestic investors.
Domestic investors include Advantage Capital Partners, Cayuga Venture Fund, Gefinor Capital, Limestone Capital Advisors, Onondaga Venture Capital Fund and Rand Capital Corporation. The new funding, anchored by the international group, is in addition to the $14 million Rheonix raised in 2013 to complete a manufacturing build out and launch its first commercial product.
“Laboratories across a range of markets, from diagnostics to food and beverage testing, are facing obstacles, such as inefficient workflow and a lack of highly trained staff,” said Greg Galvin, CEO and chairman, Rheonix. “We’re addressing these obstacles with easy-to-use and cost-effective tools capable of high throughput and high complexity in the worldwide sample-to-answer molecular diagnostics market.”
“This new series of funding recognizes the need that still exists to increase awareness and availability of the Encompass platforms that enable laboratories to build their own assays and greatly simplify the testing process,” said Chris Davis, partner, private equity, Gefinor Capital.
The Encompass MDx and Encompass Optimum platforms are automated systems that streamline workflow for building and implementing molecular assays. Unmatched versatility allows users the flexibility to configure their own testing and control all aspects of assay performance, while keeping the testing simple and affordable. The Encompass platforms allow users to create their own sample-to-answer, fully automated, complex molecular assays in an easy-to-use format using the Rheonix CARD cartridge.
The cartridge automatically manipulates a network of microfluidic pumps to move fluids through the channels of the CARD and run several biological samples through a fully integrated molecular analysis with no user intervention. The platforms can dramatically decrease the complexities of creating user-defined testing, while increasing efficiency and accuracy.
The Encompass Optimum has been developed for Research Use Only testing and is currently for sale to high complexity laboratories in the diagnostic, food and beverage industries for those capable of developing sample to result highly multiplexed tests.
“This new series of funding reflects the confidence that existing investors have in the Rheonix team and its approach to the molecular diagnostics market,” said Allen “Pete” Grum, president and CEO, Rand Capital Corporation. “We are proud to help continue the work the shareholders originally chartered with their initial investments and see the Rheonix vision becoming a market reality.”