In the shadow of the financial crisis, Diagnostic Technologies embarks on a private capital raising round of 3 million dollars

Chairman of Diagnostic Technologies, Giora Mivitz: "I trust the ability of the investors to look ahead and believe that the future lies in biotechnology." The company develops methods for the early diagnosis of preeclampsia and a method for preventing the phenomenon

In the shadow of the financial crisis, in a brave step, the Israeli start-up company DTL, Diagnostic Technologies from Yokneam, which developed a test for the early detection of preeclampsia, is going for a private capital raising round of 3 million dollars. The recruitment will be led by Arbel Capital Group, which will focus on private investment entities in the field of biotechnology in England, the United States and Israel. The capital that will be raised is intended to complete the research leading to licensing in the FDA, the Food and Drug Administration of the United States and to continue developing a method for controlled adjustment of drug treatment and identification of families with a genetic defect that causes recurrent preeclampsia.

Giora Miyochas, chairman of Diagnostic Technologies, said today that: "In the shadow of the financial crisis, we decided to take a brave step and go out to raise private capital. I trust the ability of investors to look ahead and believe that the future lies in biotechnology. We intend to meet with the potential investors in the coming days and tell them about the company's significant developments. What was considered science fiction until a decade ago is today an accepted means of diagnosis and healing that is at the service of man, and in order to continue this unprecedented leverage, we need investment."

In the previous round, which was also managed by the Arbel Capital Group (formerly Israel Angels), owned by Eric Peretz and Saar Filosof, the company raised approximately $2 million from a group of investors represented by Eric Lukach and Shmolik Reuvani. In addition, Uziah Galil, Prof. Jackie Ashkenazi, and Prof. Shlomo Mashiach, who also serve as members of the board of directors of the company's scientific advisory committee, joined as investors.

on the development

The development of Diagnostic Technologies makes it possible to detect preeclampsia before the symptoms appear, thanks to a blood test that determines the level of the protein in the mother's blood originating from the placenta, known as PP13. The test is carried out starting from the 7th week of pregnancy and can predict what may occur about six months later. The results allow doctors to consider drug treatment and thus reduce the outbreak of the disease and even in some cases prevent it completely. Until today, preeclampsia could only be discovered when its symptoms appeared, such as increased blood pressure, increased excretion of protein in the urine, and severe edema. Among some women there may also be damage to other organs and systems, such as the liver, kidneys, eyes, brain as well as the blood clotting system. The disease also endangers the fetus and may cause it irreversible damage and even death, and develops in about 5% of pregnant women.

international agreement

The company's development intrigues huge companies from all over the world, recently the company signed an international distribution agreement of a kit with Perkin Elmer Global Company (PKINNYSE: ), which distributes its products already in England, Finland and Italy. The company is in the process of establishing centers of excellence for diagnosing and monitoring women at risk of preeclampsia in England, the Netherlands, Austria and other European countries.

The situation in Israel

In Israel, the test for early detection of preeclampsia is approved by the Ministry of Health, and is marketed through a network of foreign laboratories at a price of NIS 295. The company is in negotiations with the health funds to include it in the extended pregnancy basket of the supplementary insurances.

DTL, was established in 1994 and deals with scientific developments based on placenta as well as finding methods for early diagnosis of diseases and treatment methods to prevent their development. The company's CEO is Dr. Hamotal Meiri and the acting chairman is a privileged juror.