Novacyt will use the money raised on the AIM market, London, to expand its manufacturing capacity and continue research looking into new techniques.
Novacyt specializes in diagnostic tools for a number of indications, including cancer and infectious diseases. Today, it has announced that it has raised €9.7M by placing stocks on the London-based Alternative Investment Market (AIM). This seems to have been scaled back from an earlier target of €18M in May 2017. The listing makes Novacyt the first healthcare company to be dual-listed on Euronext Growth and AIM.
The company’s proprietary technology is NovaPrep, a liquid-based cell assay that is targeted at the diagnosis of cervical cancer. The vial is specifically designed to prevent contamination and for the collection of as many cells as possible. Cells in the sample are kept healthy thanks to the technology’s unique media, which optimizes molecular testing.
Novacyt acquired UK-based Primerdesign in 2016 and has been interested in branching across the channel ever since. AIM caters for smaller growing companies and Novacyt believes that listing there will increase its access to capital and improve its international profile. The company collected €4.7M from the placing of new shares and €5M from subscriptions and will use this to accelerate its organic growth strategy.
How Novacyts NovaPrep technology works.
Quicker and better cancer diagnosis is, of course, crucial to improving the survival chances of patients. For this reason, the field is full of biotechs trying to find the next best test. Qiagen has received FDA approval for its test for rare leukemia. It may soon be joined by Angle, one of the leaders in the field, which will raise £12.2M (€13.7M) to put the finishing touches to its liquid biopsies.
Cervical cancer is one of the easiest cancers to treat if it is caught early. Regular testing is the best way to make sure the cancer is caught in time. Novacyt will hope that this financial boost will help it to bring NovaPrep to the masses, facilitating easy, regular testing.
Media – Marco Saracco / shutterstock.com; Novacyt