Melbourne-based biotech startup Diag-Nose.io Medical has raised $3.15 million in an oversubscribed seed round that has been led by Breakthrough Victoria.
The company, which has developed a groundbreaking precision medicine system that it says will transform the management of chronic respiratory diseases globally, was first established at the Stanford ENT Innovation Program and is now headquartered at Notting Hill in Melbourne’s east.
Breakthrough Victoria has contributed $800,000 to the seed round which has also been backed by Radar Ventures, Specialty Physician Associates, biotech executives Carl Stubbings, Stephen Ho and Richard Lipscombe, as well as an international syndicate of physicians from major hospitals including Houston Methodist and Mount Sinai. Stubbings is set to join the company’s board.
Diag-Nose.io Medical’s advancements in respiratory healthcare are focused on the “unified airway” which is the biological relationship between the lungs and nasal passages.
The startup is tackling what it sees as “flawed processes” in traditional diagnostic methods for chronic respiratory conditions such as asthma and chronic obstructive pulmonary disorder which it says rely on “outdated measurement tools and subjective assessments”.
Chronic respiratory diseases are estimated to affect more than 450 million people globally, leading to about four million deaths in 2019, with current treatments said to have failure rates of more than 30 per cent.
Through the use of artificial intelligence and protein signatures, Diag-Nose.io’s RhinoMAP enables clinicians to match treatments to a patient’s unique biological profile or “endotype.”
A nasal sample collected using Diag-Nose.io’s patented nasal liquid biopsy device can determine disease progression and therapeutic responsiveness.
“Over a third of Australians suffer from chronic respiratory conditions,” says Eldin Rostom, CEO and co-founder of Diag-Nose.io Medical.
“Together with the new biologics medicines, our RhinoMAP system will bring us one step closer towards the holy grail of respiratory medicine; helping patients become completely free of symptoms.
“This progress is only made possible thanks to the dedicated support and investment from visionary partners who share our mission.”
Breakthrough Victoria says Diag-Nose.io Medical is initially focusing on research applications, which can help generate valuable data for future clinical applications.
The government investment arm also notes that the startup has already built a strong network of key opinion leaders and early adopters, which is a key barrier for early-stage medtech companies.
The seed round will be used to double the company’s team to 10 members, with plans to add another 10 roles next year through the expansion of its clinical and manufacturing capabilities in Melbourne.
"Our investment in Diag-Nose.io reflects our commitment to supporting groundbreaking technologies that could make a profound difference to patient outcomes and streamline drug development,” says Breakthrough Victoria’s acting-CEO Lauren Morrey.
“By enabling faster and more accurate treatment decisions, their pioneering RhinoMAP platform can make a profound impact on millions of lives affected by chronic respiratory conditions worldwide."
Professor Robson Capasso, associate dean of research at Stanford University School of Medicine, says he has “closely and proudly followed Diag-Nose.io's journey since they graduated from the Stanford EENT Innovation program in 2019”.
“The team has not only demonstrated impressive scientific progress despite the pandemic, but they have also grown increasingly ambitious,” says Capasso.
“It makes them well-positioned to tackle one of the burning problems in respiratory care right now; matching patients to the right biologic therapy.”
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