$20m in financing for blood-based bowel cancer test

Venture capital firm OneVentures has closed a $19.7 million financing round for Clinical Genomics, an Australian company set to launch its next-generation blood-based diagnostic tool for colorectal cancer (CRC, or bowel cancer).

The funding will be used to advance commercialisation of the biotech company’s two-gene blood test: a ‘liquid biopsy’ for post-surgical monitoring of CRC recurrence, developed in conjunction with the CSIRO. The test is said to offer 2.5 times more accuracy than the current blood monitoring method, with sensitivity and specificity indicating the presence or absence of disease.

“To address the need for more accurate oncology monitoring tools, Clinical Genomics has developed a new blood test to detect tumour-specific methylated DNA biomarkers that leak from active lesions into the circulatory system,” said Clinical Genomics President and CEO Dr Lawrence LaPointe. “Current data suggest that a genomic test specific for these biomarkers is more sensitive than CEA [carcinoembryonic antigen] testing and highly specific.

“We are optimistic that our liquid biopsy technology has the potential to address an unmet need in colorectal cancer recurrence monitoring.”

Clinical Genomics will be launching the test in collaboration with partner and shareholder Quest Diagnostics. Initially, the test will be marketed as a Laboratory Developed Test (LDT) — a type of in vitro diagnostic test that is designed, manufactured and used within a single laboratory. Clinical Genomics will conduct testing in its New Jersey facility and aims to begin marketing the test in the US later this year.

Following the financing round, OneVentures Partner and Managing Director Dr Paul Kelly will join Clinical Genomics’ board of directors. Dr Kelly was formerly CEO of Gemini Genomics, a clinical genomics company which he co-founded in 1995. He also led the turnaround of Orchard Cellmark, a US/European provider of laboratory genetic testing services.

“[Clinical Genomics] has a record of bringing novel clinical diagnostics to domestic and international markets and growing market share,” said Dr Kelly. “While addressing a significant immediate opportunity in CRC monitoring with its highly sensitive and specific blood-based two-gene test, Clinical Genomics is also uniquely positioned to transform colorectal cancer screening in the general population.

“The investment opportunity fits well within the OneVentures Innovation Fund II mandate of financing later-stage companies which require $5–$15m to launch new products and fuel growth in international markets. This focus addresses the second ‘valley of death’.”