NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, March 19, 2015

Cambridge-based Daktari Diagnostics is inching towards commercialization of its fast and portable diagnostics platform, securing $15.5 million in equity funding earlier this month with hopes of entering the global market this year.

A company spokeswoman declined comment on the funding, but in a release, the company said investment came from Eastern Capital Limited and Merck Global Health Innovation Fund, as well as from existing investors Norwich Ventures and Partners Innovation Fund.

Not including the recent round, the company has raised over $31 million in equity and debt financing since 2009.

“Our near-term goal is to create a menu of tests for major infectious diseases, all of which can run on the Daktari platform in 15 to 30 minutes,” aid Bill Rodriguez, M.D., Founder and CEO of Daktari, in a release. “We appreciate the continued support from our investors and our global partners as we expand our menu, and expand our global reach.”

The company also secured $1.2 million last week from the National Institutes of Health for the second stage of a study to develop quick and portable diagnostics for hepatitis C.

Funding through grants and non-venture capital investment sources is an important part of the new funding model for diagnostic and medical device companies, which face numerous regulatory and reimbursement challenges, said John Hallinan, chief business officer for MassBio.