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| Enigma Diagnostics' Enigma Mini Laboratory system--Courtesy of Enigma Diagnostics |
U.K.-based Enigma Diagnostics inked a deal with a Chinese biotech outfit and roped in $50 million to support development of its innovative molecular diagnostic system and gain headway in the country's rapidly growing med tech market.
The Salisbury, England-based company formed a joint venture with Beijing Leadman Biochemistry to market its Enigma Mini Laboratory (Enigma ML) point-of-care diagnostic system in China and signed a $50 million subscription agreement with Chinese private equity fund Shanghai Debay Capital to bring in some extra cash. Funding will be distributed over 18 months and will be used to ramp up global commercialization for Enigma's diagnostic tool, the company said in a statement.
The Enigma ML system uses a variety of assays to test for DNA and RNA disease markers, and allows clinicians to screen patient data remotely. The company said the system's fast turnaround time and standalone diagnostic testing platform make it ideal for use in emerging markets.
"This agreement with Beijing Leadman is central to Enigma's global commercialization plans and, in particular, to its intended leadership of China's Point-of-Care market," Enigma Diagnostics Chairman John McKinley said in a statement. "The joint venture will deliver an exclusive China market sales distribution, a new Chinese based R&D program using Enigma's IP, technology and know-how, and, in the longer term, a manufacturing capability to satisfy the expected high level of demand for our flagship ML system and assays in China and worldwide."
Enigma is not the only med tech outfit casting its eye toward a lucrative Chinese market. Last year, Germany's Wilex struck a deal with GeneDiagnostics to market Wilex's breast cancer biomarker test in China. In March, diagnostics giant Qiagen ($QGEN) started marketing its next-generation tuberculosis blood test in China, addressing a growing need and keeping a leg up on rival companies.
Meanwhile, San Diego, CA-based Biocept ($BIOC) is hot on its competitors' trail. In September, the molecular diagnostics company scored local patent approval for its microfluidic channel technology, building on its East Asia expansion plans and positioning the company to grab a bigger market share.
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