West Lafayette-based startup On Target Laboratories Inc., founded by Indiana life sciences luminary Dr. Philip Low, has successfully closed a Series C funding round, amassing an impressive $30 million. The funds are earmarked to accelerate the commercialization of their groundbreaking molecular imaging agent, Cytalux, designed to illuminate cancer cells during surgical procedures.
Cytalux garnered U.S. Food and Drug Administration (FDA) approval in November 2021 for application in ovarian cancer cases. Subsequently, the innovative treatment achieved a second FDA approval for lung cancer a little over a year later.
The imaging agent developed by On Target Laboratories represents a significant advancement in surgical oncology, empowering surgeons to identify and remove more cancerous tissue. Clinical trials demonstrated that, with the aid of Cytalux, surgeons were able to detect previously undetected cancer tissue in 24% of lung cancer patients.
The Series C funding round witnessed participation from both new and existing investors, including prominent names such as H.I.G. Capital, The Hurvis Group, Johnson & Johnson Innovation – JJDC, Inc., Pension Fund of the Christian Church, 3B Future Health Fund, Elevate Ventures, and Olympus Innovation Ventures.
CEO Ben Lundgren expressed enthusiasm about the financial injection, stating, “This investment empowers us to accelerate the commercialization of our novel technology, further solidifying our position at the forefront of intraoperative molecular imaging. This financing is another vote of confidence in our mission to illuminate cancer intraoperatively so it can be removed completely.”
The substantial funding not only paves the way for the swift launch of Cytalux but also facilitates an expansion of its market presence, ensuring a more extensive impact on patients and healthcare providers nationwide.
This financial milestone comes on the heels of a significant development – the granting of a new technology add-on payment (NTAP) by the Centers for Medicare & Medicaid Services (CMS) in August. Under NTAP, CMS will provide hospitals with an additional payment, equivalent to up to 65% of the average cost of Cytalux, enhancing accessibility for a broader spectrum of patients.
Dr. Philip Low, the Ralph C. Corley Distinguished Professor of Chemistry in Purdue University’s College of Science, emphasized the pivotal role played by the university in the success of On Target Laboratories. Purdue’s supportive environment, where the application of knowledge to create meaningful products is encouraged, has been instrumental in the company’s achievements. Dr. Low, also Purdue’s Presidential Scholar for Drug Discovery, noted the university’s crucial role in facilitating the launch of seven companies, including the sale of Endocyte to Novartis Inc. for $2 billion in 2018.
The successful funding round underscores the promising trajectory of On Target Laboratories and its mission to revolutionize cancer detection through cutting-edge technology, reflecting the intersection of scientific innovation and commercial viability.