Smith & Nephew (FTSE:SN, NYSE:SNN) put down the cornerstone in the 1st tranche of Michelson Diagnostics‘ $3.8 million (£2.5 million) Series B round for its skin cancer detection device.
Kent, U.K.-based Michelson’s VivoSight device uses optical coherence tomography to generate images of tissues and vasculature beneath the skin. Smith & Nephew contributed $2.3 million (£1.5 million) to the Series B tranche, which also included new investor the Kent County Council, and existing backers.
Michelson said it hopes to raise a total of roughly $6.1 million (£4 million) with the round, expected to close "in the coming months." Proceeds are earmarked for expanding VivoSight’s footprint in Germany, where it’s approved to diagnose non-melanoma skin cancer, and for the launch of a next-generation device, according to a press release.
The company said it’s also planning to use the funds to complete a U.S. "biopsy avoidance" clinical trial and "explore further applications of the VivoSight system in areas such as wound care and dentistry.”
Smith & Nephew’s strategic initiatives senior vice president, Andrew Boyes, is slated to join Michelson’s board, according to the release. The companies said they plan to jointly explore "new indications for VivoSight such as the investigation of burn depth assessment."
"At Smith & Nephew we are keen to identify and develop innovative products which have the potential to significantly advance the way in which patients are diagnosed and treated. VivoSight fits that bill and we are very optimistic for its clinical and commercial prospects," Boyes said in prepared remarks.
"We are delighted to welcome Smith & Nephew both as a new investor and also to our board. Andrew Boyes brings a wealth of medical device development as well as industry-specific commercialisation expertise, which will prove invaluable through the next phase of growth at Michelson," chairman Brian Howlett added. "This is an exciting time for the company, as our 1st application of the VivoSight OCT system is rapidly gaining traction with commercial customers and key opinion leaders in Europe and the United States. Smith & Nephew joining the Series B round and taking a board seat not only validates our technology and the commercial impact that the VivoSight OCT system is demonstrating in NMSC imaging and diagnosis, but equally underscores the future potential of OCT imaging in other clinical modalities beyond dermatology."
Michelson raised a $3.2 million Series A2 round in January 2014.
