US-based cancer detection technology developer On Target Laboratories closed a $44m series B round on Wednesday following an $11.1m extension from investors including pharmaceutical firm Helsinn.
Investment firm HIG BioHealth Partners and venture capital firm Elevate Ventures joined Helsinn in the extension.
Johnson & Johnson Innovation – JJDC, the corporate venturing subsidiary of healthcare group Johnson & Johnson, led the initial $32.5m tranche in September 2017, which also featured unnamed existing backers.
Spun out from Purdue University in 2010, On Target Laboratories is working on small molecules that, when combined with fluorescent dyes, target and illuminate tumour cells and cancerous lesions.
The approach means surgeons can identify malignant cells that cannot otherwise be perceived with the naked eye, while at the same time helping doctors avoid removing healthy tissue.
The technology is based on research by Philip Low, the Ralph Corley distinguished professor of chemistry at Purdue University and director of Purdue’s Centre for Drug Discovery.
The cash will support further development of On Target’s lead candidate, OTL38, which is aimed at ovarian and lung cancers. The company will also advance another molecule into the clinic.
Aaron Davison, managing director at HIG BioHealth Partners, has joined On Target’s board of directors in conjunction with its investment.
Foundry Investment Fund of Indiana and undisclosed existing shareholders had previously supplied $1.7m in funding for On Target in 2015, adding to $15m provided by Pension Fund of the Christian Church and angel investor Tom Hurvis in 2014.