Bio-Techne invests $43m, partners with Astute Medical

Life sciences research and diagnostics company Bio-Techne said this week it completed a $43 million equity investment in Astute Medical, with an option to further expand the relationship.

Bio-Techne said the investment will allow it to “build a strategic foundation in diagnostics,” and that along with the investment the company will receive manufacturing rights for certain future products, and royalties on diagnostic tests that use its reagents.

“This is a wonderful collaboration that promises to deliver considerable leverage to both companies. The NephroCheck test is gaining market traction, and we look forward leveraging Bio-Techne’s world-class reagent library and manufacturing capabilities as we continue to bring innovative high-value tests to the diagnostic market,” Astute Medical CEO Chris Hibberd said in prepared remarks.

San Diego-based Astute Medical develops and produces the NephroCheck, a device designed to test for acute kidney injury in patients who have suffered a serious cardiac or respiratory event. The device has won FDA clearance and CE Mark approval in the European union.

“Strengthening our presence in the diagnostic market remains a natural fit and strategic priority for Bio-Techne. Bio-Techne’s current diagnostic revenues are largely derived through OEM manufacturing and reagent supply relationships with many of the largest diagnostic brands. Creating greater value by participating in end customer sales remains a focus for Bio-Techne. The Astute Medical collaboration enhances Bio-Techne’s exposure to end customer sales, expanding its market reach, growing its expertise and knowledge of the fast-moving diagnostics field, and at the same time developing and providing key biological reagents as critical components in new diagnostic tests,” Bio-Techne CEO Chuck Kummeth said in a press release.

Last month, Astute Medical raised $2 million in a new round of debt financing. Money in the round came from 13 anonymous sources, according to the SEC filing, and the company has not yet stated how it plans to spend funds raised in the round.

The funding round includes a principal amount of convertible notes and purchase price of warrants, according to the SEC filing, with the exercise price of warrants not determinable currently.

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