ITHACA, N.Y. — Rheonix Inc., a developer of fully automated molecular testing solutions, raised $14 million in a combination of debt and equity investments to complete a manufacturing build out and launch its first commercial product. The funds will be used to expand the company’s physical operations to produce consumables and systems to fulfill Rheonix’s joint development agreement with Life Technologies Corp. and for the commercialization of its first clinical, molecular diagnostic product offering.
The Rheonix expansion includes a remodel of its existing space and the addition of new headquarters in Ithaca, N.Y. The new location will house the newly formed Rheonix Innovation Center, where employees will pursue new opportunities and practical applications for the company’s technology through internal and external collaborations. The company’s existing space will be renovated to support scaled up manufacturing capability and capacity as production begins for the Rheonix CARD® , a low cost, high margin, disposable cartridge capable of automated, molecular diagnostic testing. The remaining funds are designated to complete the company’s first Food and Drug Administration submission. The company anticipates its first registration in the second half of 2014.
This round of funding was led by existing investors Cayuga Venture Fund and Rand Capital SBIC Inc., a subsidiary of Rand Capital Corp. (Nasdaq: RAND).
“Rand Capital is excited to be a partner with this dynamic company and proud to co-lead this funding effort along with the Cayuga Venture Fund. Rheonix is uniquely positioned to address the confluence of forces impacting the clinical diagnostic market, including the need for information versus data, the need to automate higher-volume assays, and the need for a cost-effective consumable that can be used across the full breadth of the molecular diagnostic market.,” said Allen F. “Pete” Grum, president and chief executive officer of Rand Capital Corp. “We have witnessed the continued expansion of their business and believe they are poised for rapid growth, which will in turn create high-quality high technology jobs in Central New York.”
“Over the past several months, Rheonix has positioned itself to address the market gap that is developing in the sample-to-answer molecular diagnostics market,” said Tony Eisenhut, Rheonix president. “This funding is the latest validation of the work we have done, and the need that still exists, to address the major challenges of panel testing, workforce shortages and clinical reimbursement pressures.”
For more information, visit www.rheonix.com.