Diagnostics player T2 Biosystems nabbed $40 million in a private placement from Canon U.S.A, which it will use to boost its business and drive the development and commercialization of new products.
T2 Biosystems is developing a number of tests based on its T2MR technology, which uses miniaturized magnetic resonance to provide simple, rapid and sensitive diagnostic tests. Its T2Dx Instrument uses the tech to assess how water molecules react in the presence of magnetic fields, allowing the test to eliminate some sample-processing steps. The FDA approved the device and the T2 Candida Panel in September 2014. T2 has panels for sepsis, hemostasis and Lyme disease in the pipeline.
Specifically, T2 will use the financing to advance its T2Bacteria Panel for a 2017 launch, said CEO John McDonough, as quoted by Street Insider. “We expect the T2Bacteria Panel to be a critical catalyst for our overall sepsis commercial efforts, and we remain on track to submit our application for marketing clearance to the FDA by mid-2017,” he said.
The investment will see Canon owning about 20% of T2, according to a statement. The duo has been working together since February last year, when they inked an $8.5 million deal to develop a rapid diagnostic test for Lyme disease. T2 received $2 million up front, stood to collect payments for developmental and regulatory milestones and would retain the worldwide commercialization rights for the test. Canon would receive royalties on product sales.
In August 2015, T2 raised just over $57 million in an IPO, falling short of its projected goal of up to $68 million.