Tennessee transplant NanoDetection Technology has cashed in on the promise of an investment that drew it to Ohio earlier this year and has closed on a $2.3 million series A round of funding.
The Cincinnati-area company is developing a low-cost, point-of-care diagnostic test for MRSA (Methicillin-resistant Staphylococcus aureus) to be sold to hospitals and physicians’ offices, according to a statement. MRSA is a bacterial infection that is highly resistant to some antibiotics and is often referred to as a “superbug.”
The funding, which was led by a $400,000 contribution from CincyTech, will go toward clinical trials aimed at obtaining regulatory clearance for the MRSA test, according to a statement from NanoDetection Technology.
The company hopes to begin selling the MRSA test in early 2013.
The company had originally targeted $2 million for its series A round, but strong investor interest drove the amount up to $2.3 million. A total of 21 investors participated in the round.
“We were thrilled by the number of individuals who saw the potential for our technology, especially local investors,” said CEO Joel Ivers.
NanoDetection was founded by Knoxville physician Charles Barnett and its technology was developed at Oak Ridge National Laboratory, a federally funded research and development laboratory in Tennessee.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
It moved to Franklin, Ohio in March. The company announced plans to move to Ohio in November.
