49 MSEK to EMPE Diagnostics with focus on rapid tuberculosis diagnostics
EMPE Diagnostics, which has developed a rapid test for the diagnosis and resistance determination of tuberculosis, the world’s deadliest infectious disease, has recently completed a share issue of SEK 23.5 million with Sciety. The company has also received a grant of SEK 25 million from EU Horizon 2020. The new capital will be used to complete the company’s production facility and for sale.
In India, the company’s first market, multi-resistant tuberculosis is a major public health problem, but tuberculosis is also a major problem in other parts of the world. As the bacterium that causes tuberculosis can be transmitted via coughing or sneezing, it is important to quickly initiate the correct treatment to reduce the spread of infection.
However, long treatment times and insufficient diagnostic methods mean that today it can take a long time, up to six months, for people diagnosed with tuberculosis to receive treatment with the right antibiotics. The World Health Organization estimates that one third of all cases are undiagnosed and that two thirds of those with antibiotic resistance are misdiagnosed.
The capital from the Sciety network of SEK 23.5 million will be used to EMPE’s establishment in India, which globally is the largest market for tuberculosis diagnostics. The company has recently completed a clinical study at three international hospitals and Dr. Lal Path Labs, one of the largest diagnostic laboratory chains in India.
“We are now looking forward to completing the work of setting up our production facility in India. Once in place, we can begin producing test kits according to the standards required to apply for marketing approval for sales for clinical use in India,” says Pavan Asalapuram, CEO and co-founder of EMPE Diagnostics.
In December 2020, EMPE was granted approximately SEK 25 million from the European Innovation Council (EIC) within the program for research and innovation, Horizon 2020.
“Our goal is to be able to make a big difference for very many people as our test provides reliable results in just a few hours and at a lower cost than existing tests. This means that clinics can start treatment with the right antibiotics already at the first contact,” says Pavan Asalapuram.
Andreas Lindblom, CEO at Sciety comments:
“The need for rapid diagnostics in pandemics has never been clearer. In Sweden, we have for a long time been spared from tuberculosis, but the ongoing corona pandemic has really shown how important rapid diagnosis is. The tuberculosis pandemic kills approximately 1.5 million people a year, and more effective diagnostic solutions can make a big difference here. It is therefore gratifying that EMPE has now secured almost SEK 50 million for a broader market entry.”
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Sciety is the leading Nordic life science and health tech investment syndicate. By combining experience from life science and finance we select promising companies in the industry. We invest our funds in all companies that pass our selection process and offer the investment syndicate to co-invest on the same terms. The syndicate comprises venture capital firms, family offices, and business angels.
Our mission is to help life science innovations to reach their full potential.