Chronix Biomedical is a privately-owned biotechnology company specialising in liquid biopsies for monitoring the effectiveness of cancer drugs, including immunotherapies, in real time. It also has a marketed product for detecting organ rejection, in as little as hours, following transplant. The primary benefit of these products, marketed under the TheraSure brand, is in improving patient outcomes by assisting clinical decision making. A favourable pricing model, aided by Chronix’s asset-light structure, provides an excellent commercial profile. Chronix is seeking a funding round of $10-30m to support further commercialisation.

  • Strategy: Chronix operates primarily in the transplant and cancer therapy monitoring markets. The TheraSure brand was recently launched in Europe. With little direct competition, it is harnessing its first-mover advantage initially in Europe, then in the US, by out-licensing its tests to accredited laboratories.
  • Improving outcomes: TheraSure offers significant health economic advantages through improving patient outcomes and via its reasonable pricing model. The technology provides early evidence of immunotherapy or transplant failure, informing real-time clinical decision making, and a reduced burden on payers.
  • Valuation: Since incorporation, Chronix has raised a total of $44.6m through a series of funding rounds at an average price of $0.27 per share. The last round provided the funds, and was concluded, prior to both the signing of an exclusive 15-year commercial license with a large German laboratory chain, which has an NPV of at least $92m, and a material increase in the number of patents granted. Therefore, the pre-money valuation is prior to both of these material events.
  • Risks: Investments in private, early-stage companies carry a significant risk. Patent robustness, the regulatory and reimbursement environment, and competition in a crowded market are all factors that could impede Chronix’s progress.
  • Investment summary: Chronix is looking to raise $10-30m in a pre-IPO funding round to take it through the early stages of commercialisation with Amedes, to undertake clinical trials to enhance its regulatory programmes, and to maintain/strengthen its patent position. There is a large and growing demand for accurate cancer therapy monitoring, for which Chronix has the IP.