Advanced Animal Diagnostics Closes $15 Million in Oversubscribed Series C Funding
New investors join in support of diagnostic solutions that benefit the food supply
DURHAM, NC — December 8, 2014 — Advanced Animal Diagnostics (AAD) announced today the close of a $15 million Series C round of equity financing. The financing was co-led by Cultivian Sandbox and Kansas Bioscience Authority and included Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH), Middleland Capital, and existing investors Intersouth Partners, Novartis Venture Funds and private individuals. The investment will allow AAD to accelerate the commercialization of its current product offering, QScout® MLD (milk leukocyte differential) test, while also expanding the company's product line.
AAD develops on-farm diagnostic technologies that change the way livestock producers manage animal health and costly diseases. The company launched its first commercial products, QScout MLD test and QScout Farm Lab, in 2013 to detect subclinical mastitis in dairy cows. Large-scale trials on commercial dairies demonstrated that the technology significantly improves producers' financial returns by preventing milk and reproductive losses, safeguarding animal health through earlier detection and promoting more judicious use of antibiotics.
"Investors and our growing number of customers see value in rapid, on-farm diagnostic information that hasn't existed before," said Joy Parr Drach, AAD president and CEO. "This new information allows producers to make more accurate management decisions to improve animal health and their bottom line while ensuring they use antibiotics only when needed to provide the best quality product for consumers."
AAD customer John Freund of Son-Bow Farms in Wisconsin said QScout MLD is a significant improvement over conventional tests. "QScout MLD gives us a better, consistent approach for diagnosing subclinical mastitis, and it is more efficient for our labor flow compared to on-farm culture tests. The test's objective results create a tremendous opportunity to address an issue, improve the quality of milk going into the tank, and provide a better product for consumers."
The company expects to advance the development of additional livestock tests for dairy and beef markets, invest in production and manufacturing, and expand commercial efforts for new and existing customers with this financing.
About Advanced Animal Diagnostics
Advanced Animal Diagnostics (AAD), Durham, N.C., provides livestock producers with diagnostics that improve profitability and empower more precise care of animals so they live healthier, more productive lives. AAD is committed to researching, developing and commercializing the industry's most reliable, on-farm diagnostic tests, such as QScout MLD for early detection of subclinical mastitis in dairy cows. With its diagnostic offerings, the company aims to empower real-time management decisions that increase productivity, prevent losses, improve animal welfare and protect the food supply. For more information, visit www.QScoutLab.com or call 1-855 Q2COUNT.
About the Investors
Cultivian Sandbox is a venture capital fund focused on high-technology opportunities in the food and agricultural sectors. Cultivian Sandbox operates from the Midwest, which hosts the world's greatest concentration of public and private R&D spending for food and agricultural markets. Cultivian Sandbox works closely with the management of emerging technology companies to bring cutting-edge technology solutions to market. The fund focuses on investments in the following areas: animal health, biobased products and processes, environmental technologies, food safety, human wellness, and production technologies. For more information, please visit www.cultiviansbx.com.
Kansas Bioscience Authority
Kansas Bioscience Authority is a venture investor focused in agribusiness, animal health, and human health innovations. The team brings deep sector expertise and co-investors together to accelerate bioscience company growth generating results for the entrepreneur, the investor, Kansas and the world. For more information, please visit www.kansasbioauthority.org.
Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH), an S&P 500 company, is a pioneer in commercializing new diagnostic technologies and the first in its industry to embrace genomic testing. With annual revenues of $5.8 billion in 2013, over 34,000 employees worldwide, and more than 220,000 clients, LabCorp offers more than 4,000 tests ranging from routine blood analyses to reproductive genetics to companion diagnostics. LabCorp furthers its scientific expertise and innovative clinical testing technology through its LabCorp Specialty Testing Group: The Center for Molecular Biology and Pathology, National Genetics Institute, ViroMed Laboratories, Inc, The Center for Esoteric Testing, Litholink Corporation, Integrated Genetics, Integrated Oncology, Dianon Pathology, Monogram Biosciences, Inc, Colorado Coagulation, Cellmark Forensics, MedTox, and Endocrine Sciences. LabCorp conducts clinical trials testing through its LabCorp Clinical Trials division. LabCorp clients include physicians, government agencies, managed care organizations, hospitals, clinical labs, and pharmaceutical companies. For more information, please visit www.labcorp.com.
Middleland Capital is a private investment firm focused on global early-stage technology opportunities. Leveraging a unique breadth of geographic and industry experience, the firm seeks partnerships with exceptional management teams to commercialize innovative technologies, accelerate growth and build long-term value around the world. For more information, please visit www.middlelandcap.com.
Intersouth Partners is one of the most active and experienced venture capital firms in the Southeast, having invested in more than 100 private companies. Founded in 1985, Intersouth manages $780 million in seven venture capital limited partnerships, making it the largest venture capital fund in North Carolina and one of the largest in the Southeast. For more information, please visit www.intersouth.com.
Novartis Venture Funds
Established in 1996, the Novartis Venture Fund currently manages over $800 million in committed capital and is invested globally in more than 55 private life sciences companies across biotech, medical devices and diagnostics. As a financially driven corporate life science investor, the Novartis Venture Fund invests in those companies which have the potential to change a core therapeutic field or explore new business areas that will be critical to the patient. For more information, please visit www.venturefund.novartis.com.