Myconostica sold to Cambridge healthcare firm

UNIVERSITY of Manchester spin-out, Myconostica, has been sold to Lab21, a personalised medicine and clinical diagnostics firm based in Cambridge.

The business, which is based at the Core Technology Facility off Oxford Road, develops and supplies molecular diagnostic products to aid the diagnosis of life-threatening fungal infections.

The value of the deal was not disclosed but a stock market statement by one investor, Amphion Innovations, said its 16% was valued at £1.4m in December.

Amphion, which specialises in supporting life sciences start-ups, said Myconostica required “significant further capital in order to achieve its full business plan”.

Amphion’s chief executive, Richard Morgan, said: “The lack of sufficient further capital to support Myconostica’s continued progress as a standalone company required exiting at a relatively early stage in its growth which ended in a disappointing outcome.”

Myconostica was established in 2006, by leading international fungal clinician Professor David Denning. It launched several products which are now on the market in Europe, Canada and Southern Africa.

Lab21 said the acquisition would expand its growing proprietary diagnostic portfolio and provide manufacturing capabilities. It plans to develop the global sales of Myconostica products and launch Myconostica’s fungal testing services from its new reference laboratory in South Carolina as well as from Cambridge.

Lab21’s chief executive Graham Mullis said: “We are delighted that we have acquired Myconostica. The company’s products complement our infectious diseases portfolio and help position the company in a large market where there are significant clinical challenges.”

Prof Denning said: “We have developed fast and sensitive molecular diagnostics for life threatening fungal infections such as aspergillosis and pneumocystis pneumonia, that will transform patient care for these infections. 

“Fungal infections are frequently under-diagnosed using current diagnostic methods and are much more common than realised. The global reach of Lab21’s operations will extend the availability of Myconostica’s products to many more clinicians. I look forward to working with Lab21 to further develop the evidence base demonstrating the great clinical value of molecular testing for fungi, as is routine for viruses.”