NEW YORK (GenomeWeb) – BATM Advanced Communications, an Israeli firm focused on real-time technologies for networking and medical laboratories, has agreed to invest up to $30 million in Ador Diagnostics, BATM's joint venture with Gamida for Life.
The funds will go toward commercialization of Ador's NATlab reader, a point-of-care molecular diagnostics platform that uses microarray cartridges to enable sample-to-answer identification of specific infectious diseases.
Terms of the deal call for BATM to make an initial $14.5 million initial investment by the end of March, and to provide an additional $15.5 million in funds by the end of 2020, subject to certain milestones. Up to $25 million is to be invested by undisclosed medical industry investors from the US, together with Puma Brandenburg Investments. BATM and Gamida for Life will each provide $4 million of the outstanding amount.
In addition, prior to the investment, an as-yet-unnamed new company will be established, initially owned 50:50 by BATM and Gamida, which will own 100 percent of Rome-based Ador. The investment will be structured through this new company.
According to Ador's website, NATlab can perform a full testing workflow in less than 90 minutes with two minutes of hands-on time. It features built-in DNA and RNA extraction, can perform up to 100-plex PCR using a carbon array detection technology, and provides data analysis and interpretation.
BATM said that the platform is currently undergoing final engineering ahead of in-hospital testing in the US and Europe in 2019, with the intention of receiving regulatory approval in 2020. The initial investment will primarily be used to build several systems to be installed with customers for testing; to develop and certify several cartridges for different disease assays; and for sales and marketing.
"This investment reflects the tremendous potential of our molecular biology-based solution for the diagnostics market, which has already demonstrated its viability with real-life testing," BATM CEO Zvi Marom said in a statement. "It is also a great endorsement of our approach of incubating innovative technology companies and then capitalizing on their IP. With this funding, once completed, we will be able to accelerate and drive forward the commercialization of our breakthrough NATlab system, which we believe will revolutionize the point-of-care medical diagnostics industry."
BATM, headquartered in Hod Hasharon, Israel, provides real-time technologies for networking and cybersecurity solutions and for biomedical and biowaste treatment solutions via its two operating divisions. The Biomedical division is focused on the development of diagnostic laboratory equipment and services as well as innovative products to treat biological pathogenic waste in the medical, agricultural, and pharmaceutical industries.