- Funding will support the Company’s increased working capital requirements due to international expansion and accelerated product development, including its DXRX platform
- Diaceutics continues to go from strength to strength since its admission to the AIM market of the London Stock Exchange
- Company achieved 30% increase in revenues and 52% growth in gross profit in its 2019 annual results
Belfast/Dundalk, 26 August 2020 – Diaceutics PLC, (AIM: DXRX), today announces that it has raised a further £4 million/€4.45 million in financing from Silicon Valley Bank’s UK Branch (SVB). This marks an increase from the last term agreed between the parties, when £2.5 million/€2.78 million was raised to support working capital needs during 2018-2019.
The funding will be used by Diaceutics (or the “Company”) over the next three years to provide additional working capital as the Company continues its global expansion and accelerates product development, such as its DXRX platform – the world’s first diagnostic network for precision medicine.
Developed by Diaceutics, DXRX will enable the Company to meet the need for a global standardised diagnostic process by offering an end-to-end solution for the development and commercialisation of precision medicine diagnostic testing. It will significantly enhance Diaceutics’ service offering and enable it to meet the increased market demand being created by 1,000 new precision medicines currently in pharmaceutical company pipelines.
Underpinned by Diaceutics′ database of more than 227 million patient records, the platform will enable the industry-wide collaboration required between pharmaceutical companies, laboratories and diagnostic companies to unlock the power of precision medicine and ensure every eligible patient gets the treatment they need, when they need it.
This news comes off the back of a very successful 18 months for Diaceutics. Since its admission to the Alternative Investment Market of the London Stock Exchange (AIM) in March 2019, the Company has gone from strength to strength. Its 2019 annual results saw a 30% increase in revenues to £13.4m/€14.9m, as well as gross profit growth of 52% to £1.3m/€1.4m.
Earlier this month, Diaceutics also signed a new contract with a global pharma company with an initial contract value of $1.27 million. Diaceutics will provide the client with an end-to-end diagnostic development and commercialisation service which will help the Company to ensure that everyone who should be tested for their new precision medicine therapies, is tested – and is tested efficiently.
Commenting on the renewed partnership with SVB, Philip White, Chief Financial Officer, Diaceutics, said: “Our research shows that currently half of patients are missing out on precision medicine drugs due to inefficiencies in the testing ecosystem. In addition, the average precision medicine drug is launched 4.5 years before its companion diagnostic test is readily available to the eligible patient population.
“We are actively working to reduce this lag time, driving testing standardisation through our services, enabled by our DXRX platform. The DXRX network, in which more than £20 million has already been invested, has the potential to completely transform the way key precision medicine stakeholders collaborate and to solve the problems facing the global precision testing ecosystem.
“We are delighted to secure this funding from SVB which will help to streamline the launch of precision medicine drugs by ensuring that laboratories are ready to accurately and efficiently test for each new drug on the day that it is launched. SVB has always been hugely supportive of our vision to make this a reality and help patients to benefit from better testing and better treatment. We look forward to seeing what the next three years hold, with their backing.”
Andrew Hunter, Managing Director, Silicon Valley Bank, said: “We are excited to continue our relationship with Diaceutics, and to further support their team’s next stage of growth. With a strong global client base, increased geographic expansion, and development of the DXRX platform, Diaceutics is very well placed within the rapidly evolving precision medicine market. Silicon Valley Bank is committed to working with innovative companies in Ireland and we look forward to partnering with Diaceutics as they further build on this market leading position.”