Chronix Biomedical, Inc. Expands in Brookings, Secures Fundingposted - FEB 05, 2007
PIERRE, S.D. - Chronix Biomedical, Inc. announced today that it will establish its U.S. laboratory facility in Brookings, S.D. The company recently closed a private round of equity funding totaling $5 million led by PrairieGold Venture Partners of Sioux Falls, S.D.
Chronix is a medical diagnostic company developing technology to diagnose chronic illnesses very early in the disease process. It will lease laboratory space in Brookings and hire additional employees to conduct its research.
"Chronix has been collaborating on a number of infectious disease research projects with the 2010 Center for Infectious Disease Research and Vaccinology (CIDRV) housed at South Dakota State University," said Gov. Mike Rounds. "The Center's recognized leadership in BSE (Bovine Spongiform Encephalopathy) research and the successful research collaborations have directly lead to Chronix establishing laboratory research facilities in Brookings. We're confident that South Dakota's leadership in focused areas of research and our business friendly environment will continue to be a perfect fit for technology-based companies like Chronix."
"We believe this investment is a strong commitment from our new and existing shareholders. This financing will provide us with the financial capacity to continue the development of novel diagnostic tests based on our core technology of detecting circulating nucleic acids in the blood of animals and humans with chronic diseases," said Chronix Biomedical CEO Dr. Howard Urnovitz.
"We're excited to hear that Chronix Biomedical has chosen to expand its presence in Brookings, and that existing research collaborations with SDSU will continue to grow. Chronix Biomedical is a valuable addition to a growing cluster of bioscience industries in Brookings that enhances the ability of Brookings, SDSU and the Governor's Office of Economic Development to collaboratively build next generation economies in the state of South Dakota," said Al Heuton, executive director of the Brookings Economic Development Corporation.
As a result of the financing, Michael Jerstad from PrairieGold Venture Partners will join Chronix's Board of Directors. According to Michael Jerstad, "What attracted us to Chronix was the extremely novel approach to detecting disease long before any clinical symptoms would appear. It is our belief that with this new funding, Chronix will be able to validate the technology in a variety of diseases and, if successful, will have the opportunity to make a significant contribution to veterinary and human diagnostics."
About Chronix Biomedical
Chronix Biomedical is a genomics company that designs simple blood tests targeted at the earliest detection of chronic illnesses. Chronix's first product, an ante mortem blood test for Bovine Spongiform Encephalopathy ("BSE" or "mad cow disease"), is currently in validation studies by the German and Canadian governments. Chronix also intends to pursue molecular diagnostic applications for variant Creutzfeldt-Jakob Disease ("vCJD") and several cancers, including breast, lung, ovarian, and prostate. The Company has offices in San Jose, California and laboratories in Brookings, South Dakota and Goettingen, Germany.
About PrairieGold Venture Partners
PrairieGold Venture Partners is a Sioux Falls, S.D. based venture capital firm. The firm makes investments in early stage opportunities in the Upper Midwest in the life sciences, information technology and value-added agricultural sectors. More information on PrairieGold Venture Partners can be found at www.pgvp.com
For additional information regarding Chronix Biomedical contact:
John DiPietro, Chief Financial Officer at: 408-441-2072
Or visit: www.chronixbiomedical.com (site is currently being updated, so contact John DiPietro at firstname.lastname@example.org with all information requests)