University of Toronto spinoff ChipCare Corporation has secured one of the largest healthcare angel investments in Canada’s history for its point-of-care analyzer. The innovative handheld device can test for a number of different diseases using a single drop of blood.
Currently in development, the device has the potential to significantly improve HIV diagnostics in the developing world. It has also secured one of the largest angel investments in Canada’s healthcare industry, with a Phase 2 financing that closed recently for $2.05 million.
This investment came from a collaboration of angel investors including Maple Leaf Angels, MaRS Innovation and the University of Toronto, and was led by the federal government and Grand Challenges Canada. In a sector where angel investments have typically been few and far between, the funding is a welcome recognition of the potential of Canada’s health research sector.
The lab-on-a-chip device runs a number of diagnostic blood tests, including HIV testing. Instead of getting the sick to travel to distant labs, it’s possible to carry out analysis on-the-spot.
“This technology has the potential to save and improve the lives of millions around the world by bringing state-of-the-art blood testing to patients, instead of asking the sick to travel to labs that are often difficult to reach,” said James Dou, ChipCare’s co-founder and CTO. “The impact on in-the-field HIV diagnostics alone could be revolutionary; this financing is critical to our commercialization roadmap.”
The $2.05 million investment will support the development and commercialization of the device over the next three years, as it goes through its ‘valley of death’ period of development. ChipCare’s Phase 2 project plan involves a three-year development of the device, to develop a more robust prototype and reduce costs as part of the move to scale. The company hopes the handheld analyzer will transform the way in which point-of-care diagnostics are delivered in the field for both developed and developing world populations.
The handheld analyzer is a unique tool because of its low-cost (lower than similar devices currently on the market), a tech platform that gives test results quicker and more accurately, and its ability to run multiple diagnostic tests simultaneously. The device has caught the eye of some major investors, who with their combined funding have made this the second-largest healthcare angel investment in Canada.
“To the best of our knowledge, this is at least the second largest healthcare angel investment in Canada’s history – and it might well be the largest by the time the project reaches full maturity,” said Adrian Schauer of Maple Leaf Angels. “The diagnostic potential of this device can hardly be overstated. We are investing heavily in its commercialization because we see the potential to revolutionize bedside testing for many conditions, from HIV and malaria in the developing world, to sepsis, heart disease and cancers here at home.”
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