Will expand 'one-stop-shop' HIV diagnostics service, which includes viral resistance testing, therapeutic drug monitoring and genetic screening, to HIV centres and sexual health clinics across Europe
Delphic Europe, which claims too be the UK's leading provider of specialist diagnostics products and services for HIV clinics, has raised £675,000 from MMC Ventures, which led the funding round, and the Capital Fund.
Delphic will use the new funds to expand its unique 'one-stop-shop' HIV diagnostics service, which includes viral resistance testing, therapeutic drug monitoring and genetic screening, to HIV centres and sexual health clinics across Europe.
Delphic has further strengthened its position by acquiring the world-leading clinical therapeutic drug monitoring service developed by the Liverpool HIV Pharmacology Group.
This latest acquisition builds upon Delphic's recent purchase of the genetics laboratory Genovar Bioscience.
With the advent of combination antiretroviral drug therapy, HIV has become a chronic condition requiring lifelong treatment and routine diagnostic intervention.
HIV diagnostics are, however, supplied by a fragmented system of hospital laboratories and generalist providers with turnaround times and reporting formats meeting the needs of the laboratory rather than the clinician.
Tim Leaver, founder and managing director of Delphic, said: "Diagnostic monitoring is now an integral part of the treatment of HIV.
"The conjunction of virology, pharmacology and genetic screening has allowed individualised care to become the 'standard of care' in HIV treatment, ensuring that patients are on the right drugs and achieve the right concentration of those drugs.
"Delphic provides a clinician-focussed service, supplying a suite of coordinated diagnostic tests to rapid turnaround times.
"We are also expanding into routine testing, such as viral load testing for HIV and hepatitis, and are developing a new bioinformatics-based product with the support of an advisory panel of world HIV key opinion leaders".
Founded in 2001 by Tim Leaver, Delphic's board includes world experts and key opinion leaders in HIV David Back and Saye Khoo (University of Liverpool) and Anton Pozniak (Chelsea and Westminster Hospital).
Leaver continued: "Delphic is a revenue-generating business and is now ready to roll-out its proven business model into the wider European market.
"We have the business, scientific and clinical leadership to capitalise on our existing products, to bring new diagnostics into our portfolio and to develop a web-enabled bioinformatics-based product which will further enhance the potential for individualised care for HIV patients.
"The HIV diagnostics market in the UK is mirrored across Europe, and negotiations are already underway to establish the business in other territories, particularly in Italy and Spain, the largest European markets".
Leaver commented on the role played by MMC Ventures and the Capital Fund: "We are delighted that MMC Ventures and the Capital Fund are supporting a London-based company as it rolls out across Europe.
"As well as providing the vital capital we need to fund Delphic's expansion, MMC Ventures and the Capital Fund have given us access to knowledgeable investors whose skills, contacts and expertise can also contribute to the company's growth".
Mike Kennedy, Capital Fund's investment manager, said: "Delphic is the established market leader in UK HIV specialist diagnostics with a very competent management team who have developed a unique service offering individualised patient care.
"We are delighted to back the roll-out of its proven business model across Europe and wish Tim Leaver and the management team every success with their plans".
Ben Richardson, investment director at MMC Ventures, said: "We were pleased to back Delphic to roll out its cutting edge diagnostics tests to the European marketplace.
"The company is playing a key role in patient healthcare by providing an integrated service that will benefit the increasing number of HIV patients.
"Delphic is also well placed to capitalise on similar opportunities in therapy areas such as oncology, fertility, diabetes and cardiovascular disorders, and so we see a very bright future for the company".
Launched in 2002, the Capital Fund is a £50 million venture capital fund which backs fast-growing, small and medium-sized enterprises in Greater London.
To date the fund has made 26 investments in London-based companies.
Initial investments can be up to £250,000 and the fund can invest a further £250,000 after six months or more.
In some circumstances, alongside other new investors, the fund can follow on its investments with up to £5m in total in a single company.
The Capital Fund is the largest of the nine regional venture capital funds and has a mixture of public and private sector investors.
The Capital Fund is managed by YFM Venture Finance, which is authorised and regulated by the Financial Services Authority and part of the YFM group.
YFM provides investment capital and business development services to SMEs throughout the UK.
It currently has £250m in funds and consultancy contracts under management, with over 70 employees.
MMC Ventures is a venture capital syndicate of successful businessmen who invest together in early stage companies.
Supported by a core group of highly qualified venture capital professionals, the syndicate comprises more than 50 successful business men and women who bring to portfolio companies, in addition to capital, the benefits of strategic advice, operational experience and high level introductions.
Founded in 1999, MMC has made 13 investments, two of which have exited on AIM.
Delphic Europe was founded in 2001 to market HIV viral resistance testing.
It has subsequently built a portfolio of tests around pharmacology and genetics and is in the process of developing a new bioinformatics-based product.
Delphic's board and management team combine world-leading HIV scientists and clinicians with commercial and management expertise from the healthcare sector.
Delphic is developing the 'individualised care company' where treatment is premised upon meeting the needs of the individual patient.
HIV is a life-long condition requiring drugs and routine diagnostic monitoring.
There is no treatment without diagnostics.
HIV diagnostics is a global niche market with similar requirements and structure across Europe and the USA.
Delphic recognises that it is both possible and necessary to rationalise the supply chain for HIV diagnostics.
It says it is a recognised brand in the HIV market with access to current and next generation niche HIV diagnostics.
The annual cost of therapy in the developed world, where there are 1.3 million HIV patients, is £7-£10,000 per patient.
The specialist HIV diagnostics market in Europe and the USA is worth £50 million and could reach £250m by 2009.
The HIV drug market is expected to grow to $13 billion by 2007.
