Medical devices company Michelson Diagnostics backed by £1.98m Octopus-led investment
Series A2 financing will fund expansion of leading skin cancer screening technology
UK medical devices company Michelson Diagnostics today announced the completion of a £1.98m Series A2 financing round, led by venture capital firm Octopus Investments.
Founded in 2006, Kent-based Michelson Diagnostics is best known for its patented VivoSight imaging system, which allows medical practitioners to view all layers of the skin without invasive surgical procedures.
It is primarily used to detect non-melanoma skin cancer (NMSC), the most common skin cancer with an estimated 3.5 million new cases in the USA annually.
Following its launch in Germany in mid-2011, VivoSight has grown rapidly – the company claims more than 2,500 scan procedures were performed by December 2013 at ten clinics.
Michelson is also currently conducting a multi-centre study of the benefits of its technology in skin cancer diagnosis, the results of which will be presented at the American Academy of Dermatology in March.
The current funding round, which included input from a number of investors including Catapult Venture Managers and London Business Angels alongside Octopus’ backing, will be used to expand sales of VivoSight in Germany, in addition to developing a second generation VivoSight system with an anticipated lower cost of manufacture and enhanced functionality.
Part of the investment will be used to pilot the imaging system in the USA, which Michelson said represents the largest potential market for the VivoSight system.
Simon Andrews, a member of the ventures team at Octopus Investments, said: “The team at Michelson Diagnostics has really impressed us over the past eighteen months.
“The market for non-invasive therapy is developing and we are very pleased to see the promising early results of the multi-centre study which should accelerate the adoption of VivoSight. The business has made excellent progress to date and we are excited about the next stage of its growth and development.”
Jon Holmes, chief executive of Michelson Diagnostics, added: “I would like to thank our investors for their continued support; the completion of this financing concludes a year in which we have made real progress, especially in our market access in Germany.
“We now look forward to a very promising 2014 which will include the publication of Level 1 Clinical Evidence in the diagnosis of NMSC.”