Diagnostic systems company completes equity financing

SAN FRANCISCO — Biomagnetics Diagnostics Corp., a producer of diagnostic systems and technology for malaria, tuberculosis, HIV and hepatitis testing, on Oct. 19 announced the completion of its equity financing designed to fund entry into the Integrated Optical Biosensor Systems market. Through this round of equity financing the company received cash and commitments of approximately $1 million from several private investors and a single philanthropic organization.

"We view the market for both malaria and bovine tuberculosis testing to be significantly underserved with few viable field deployable technologies available. In 2010 we plan to introduce a new generation of products to target this area," said Clayton Hardman, CEO of Biomagnetics Diagnostics. "We believe this technology upon commercialization will not only be profitable for Biomagnetics and our investors, but will also provide an important tool in the medical, research and anti-bioterrorism communities that can potentially improve and save lives."

According to the World Health Organization, some 3.2 billion people, or about half the world's population is at risk of malaria transmission in 107 countries and territories worldwide. While there are between 350 million and 500 million new cases of malaria each year, there are very few reliable and field deployable diagnostic tools available. In the case of malaria, early detection substantially improves treatability and survivability. Tuberculosis is the second leading cause of death from infectious disease worldwide.

Bovine TB is a growing problem through out the world with an estimated 1.3 billion cattle at risk. In the United States, where the cattle industry is valued at $60 billion annually, the use of existing diagnostic tests currently add $5 to $15 on average per head to the cattle industry's costs. Field deployable integrated optical biosensor systems hold the promise to significantly speed the diagnostic testing process and to meaningfully lower costs.