NEW YORK (360Dx) — Glycotest announced today that has signed an agreement to raise $10 million in a Series A round of financing from Chinese healthcare firm Shanghai Fosun Pharmaceutical.
Glycotest said it will use the funding for the planned US launch of its blood-based hepatocellular carcinoma (HCC) test — which uses a proprietary algorithm to convert the levels of three fucosylated serum glycoproteins and three standard biomarkers into a score that physicians can use to determine the likelihood a patient has the disease — as well as develop additional tests for liver fibrosis and cholangiocarcinoma.
The round includes an upfront equity investment of $3 million, with the remaining paid on the completion of certain milestones. Upon completion of the round, Shanghai Fosun will hold a 40 percent stake in New York City-based Glycotest. It will also receive the exclusive rights to manufacture and market the HCC test in China in exchange for an undisclosed royalty to Glycotest.
British investment firm NetScientific said its stake in Glycotest will fall to 51.1 percent following the close of the Series A.
The financing is contingent on outbound direct investment approval and clearance from The Committee on Foreign Investment in the United States.