Bio-Techne Corporation, a global life sciences company, closed on a strategic equity investment in Astute Medical, Inc. a San Diego, California-based diagnostic company devoted to improving patient healthcare outcomes through the identification and validation of novel biomarkers.
Certain existing Astute Medical investors also participated in the financing, which totaled $43 million. This transaction has been structured to allow Bio-Techne to build a strategic foundation in diagnostics, with an option to further expand the relationship.
In addition to Bio-Techne’s equity investment in Astute Medical, Bio-Techne will receive certain manufacturing rights for future products and royalties on diagnostic tests that contain Bio-Techne reagents. Astute Medical will benefit from enhanced access to Bio-Techne’s extensive libraries of antibodies and proteins for future test development, while leveraging its own expertise in discovery, development and commercialization of novel diagnostic tests. This minority equity investment marks a decisive movement for Bio-Techne as part of a long-term strategy to expand its presence in the branded diagnostic market.
“Strengthening our presence in the diagnostic market remains a natural fit and strategic priority for Bio-Techne,” said Chuck Kummeth, president and chief executive officer of Bio-Techne. “Bio-Techne’s current diagnostic revenues are largely derived through OEM manufacturing and reagent supply relationships with many of the largest diagnostic brands. Creating greater value by participating in end customer sales remains a focus for Bio-Techne. The Astute Medical collaboration enhances Bio-Techne’s exposure to end customer sales, expanding its market reach, growing its expertise and knowledge of the fast-moving diagnostics field, and at the same time developing and providing key biological reagents as critical components in new diagnostic tests.”
Founded in 2007, Astute Medical has developed and obtained US regulatory clearance and CE marking for the Nephrocheck test, which assesses the risk of moderate to severe acute kidney injury in hospitalized patients.
The novel, proprietary test could revolutionize medical practice since acute kidney injury is a substantial source of excess medical care costs associated with a broad spectrum of conditions, including sepsis and post-surgical complications. The Nephrocheck test is currently available in the US and Europe on the Company’s ASTUTE140 Meter and through commercial partners. The Nephrocheck test may also become available on higher throughput testing platforms. Chris Hibberd, CEO at Astute Medical, stated: “This is a wonderful collaboration that promises to deliver considerable leverage to both companies. The Nephrocheck test is gaining market traction, and we look forward leveraging Bio-Techne’s world-class reagent library and manufacturing capabilities as we continue to bring innovative high-value tests to the diagnostic market.”
Astute Medical is devoted to improving patient healthcare outcomes through the identification and validation of novel biomarkers. The company’s focus is community and hospital-acquired acute conditions that require rapid diagnosis and risk assessment.
Bio-Techne Corporation is a global life sciences company providing innovative tools and bioactive reagents for the research and clinical diagnostic communities.