On Target Laboratories, Inc., a privately held biotechnology company developing intraoperative molecular imaging agents to target and illuminate cancer during surgery, announced the completion of a $30 million Series C financing. This significant investment will play a pivotal role in accelerating the commercialization of the company's novel compound, CYTALUX, the only FDA approved molecular imaging agent that illuminates lung and ovarian cancer as an adjunct during surgery, enabling surgeons to detect more cancer for resection.
"This investment empowers us to accelerate the commercialization of our novel technology, further solidifying our position at the forefront of intraoperative molecular imaging," said Ben Lundgren, President and CEO of On Target Laboratories. "This financing is another vote of confidence in our mission to illuminate cancer intraoperatively so it can be removed completely."
The funding was backed by new and existing investors 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.
"On Target Laboratories is at the forefront of a new wave of fluorescent agents that are game changers for surgical imaging," said Nacho Abia, Chief Strategy Officer at Olympus. "The ability of CYTALUX to illuminate lung and ovarian cancer during surgery is a stellar example of what we describe at Olympus as 'making the invisible visible'."
This infusion of capital will enable On Target Laboratories to expedite the commercial launch of CYTALUX and amplify its market presence, ultimately benefiting patients and healthcare providers across the United States.
"This financing serves as a testament to the strength of On Target Laboratories' technology, especially in light of the complexities posed by the current financial landscape," said Gwen Watanabe, Managing Director of H.I.G. BioHealth Partners and On Target Laboratories Board Member. "We are delighted to see the support from both private equity and strategic investors as we introduce CYTALUX to the cancer community."
In August, On Target Laboratories announced that the Centers for Medicare & Medicaid Services (CMS) granted a new technology add-on payment (NTAP) for CYTALUX use in ovarian and lung cancer surgery. Under NTAP, CMS will provide hospitals with additional payment of up to 65 percent of the average cost of CYTALUX, which is expected to expand access of the technology to more patients.
The closing of this funding round closely coincides with Stryker's recent introduction of the 1788 Platform, the only minimally invasive surgical camera currently cleared for use with CYTALUX. The convergence of Series C financing, NTAP reimbursement, and the nationwide rollout of this visualization solution creates a unique opportunity for On Target to expedite the expansion of CYTALUX.
