Molecular Detection Inc (MDI) announces completion of a $3.3 million Series C financing. MDI is preparing to launch its first product, the Detect-Ready assay for the rapid detection of methicillin-resistant Staphylococcus aureus (MRSA), a growing worldwide problem that results in serious illness and death while increasing hospital costs. The company also announced that Todd M. Wallach has been named chief executive officer. Mr. Wallach brings MDI more than two decades of experience in helping to grow successful life sciences enterprises from start-up through global commercialization.
“This Series C financing represents a major milestone for MDI, confirming the promise of our innovative molecular diagnostic technologies and our soon-to-be-launched assay for MRSA screening,” said Mr. Wallach. “The Detect-Ready MRSA assay offers healthcare providers a high-performance diagnostic with an unmatched combination of accuracy, speed, flexibility and cost-effectiveness, addressing a market that is expected to exceed $1 billion in annual revenues in the next few years. We are gratified at the strong investor response to this financing, which provides the resources needed to launch our MRSA assay in Europe and the U.S. while also expanding our pipeline of molecular diagnostic tests.”
The Series C financing included both existing and new investors and was more than 300% oversubscribed. It was led by MentorTech Ventures II, LP and included new investors Ben Franklin Technology Partners of Southeastern Pennsylvania, Robin Hood Ventures and the Mid-Atlantic Angel Group Fund I and II, LP (MAG). MDI has previously been funded by private investors and founders, the SVM-Israel Opportunity Fund II, LP and the Chief Scientist Office of the Israeli Ministry of Industry and Trade.
“Both the near-term promise of MDI’s MRSA assay and the broader potential of its molecular diagnostics technology contributed to our decision to lead this Series C financing,” said Boris Kalandar, managing director of MentorTech Ventures and a Board member of MDI. “The fact that the financing was significantly oversubscribed in a challenging market attests to investors’ enthusiasm for MDI’s approach, and we look forward to working with Todd and his team to help support the company’s growth.”
As part of the financing, Peter Linder, chairman of the Executive Committee of MAG, is joining the MDI board of directors. He commented, “We view MDI’s approach as the right technology at the right time for a changing healthcare marketplace, and we are especially pleased that the company is headquartered here in our region. We believe the strength of the investor response to this financing bodes well for the future of this promising company under Todd’s capable leadership.
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