OREANDA-NEWS. Michelson Diagnostics, the UK based medical device company focused on multi-beam Optical Coherence Tomography ('OCT') technology, is pleased to announce that it has closed the £2.5 million First Tranche of its Series B financing.  This was led by strategic investor, global medical technology business Smith & Nephew and included new investor Kent County Council as well as existing investors.

The £2.5 million investment will be used to expand the Michelson Diagnostics' commercial presence in Germany; launch the Company's next generation VivoSight OCT tissue-imaging system; complete the ongoing US multi-centre clinical biopsy avoidance study and explore further applications of the VivoSight system in areas such as wound care and dentistry.  Michelson Diagnostics is in discussions with other investors regarding the Second £1.5 million Tranche of Series B round and expects to close this in the coming months.

VivoSight is a point-of-care tissue-imaging system that for the first time allows users to see below the surface of the skin; non-invasively and with continuous high definition images.  Using VivoSight, medical professionals can non-invasively obtain images of the epidermis and superficial dermis of the skin and make an accurate, pain-free diagnosis in real-time.  The Company's initial clinical application is for the diagnosis of non-melanoma skin cancer ('NMSC'); the most common skin cancer with approximately 3.5 million new cases diagnosed each year in the USA alone.

In March 2014, the Company announced positive top line results from the successfully completed multi-centre, prospective clinical trial in Germany for the diagnosis of basal cell carcinoma using the VivoSight OCT system at the American Academy of Dermatology's 72nd Annual Meeting in Denver, CO.  The full results from the trial have been submitted for publication in a peer-reviewed journal.  The trial demonstrated a statistically significant improvement in the specificity and Negative Predictive Value (NPV) of Basal Cell Carcinoma diagnosis over both clinical and dermoscopy diagnosis - the current gold standard.

VivoSight currently has regulatory clearance in Europe and Australia, and FDA 510(k) clearance in the US.

Andrew Boyes, SVP Strategic Initiatives Smith & Nephew, will join the Company's Board.  Together, Smith & Nephew and Michelson Diagnostics will collaborate to explore new indications for VivoSight such as the investigation of burn depth assessment. 

Brian Howlett, Chairman, Michelson Diagnostics, commented:  "We are delighted to welcome Smith & Nephew both as a new investor and also to our Board.  Andrew Boyes brings a wealth of medical device development as well as industry-specific commercialisation expertise, which will prove invaluable through the next phase of growth at Michelson.  This is an exciting time for the Company, as our first application of the VivoSight OCT system is rapidly gaining traction with commercial customers and key opinion leaders in Europe and the United States.  Smith & Nephew joining the Series B round and taking a Board seat not only validates our technology and the commercial impact that the VivoSight OCT system is demonstrating in NMSC imaging and diagnosis, but equally underscores the future potential of OCT imaging in other clinical modalities beyond dermatology."

Andrew Boyes, SVP Strategic Initiatives Smith & Nephew, said:  "At Smith & Nephew we are keen to identify and develop innovative products which have the potential to significantly advance the way in which patients are diagnosed and treated.  VivoSight fits that bill and we are very optimistic for its clinical and commercial prospects."

Simon Andrews, member of the Ventures team at Octopus added:  "Michelson Diagnostics is at an important stage of the commercialisation of the VivoSight system and we remain firm supporters of the business.  Following the promising data in 2014 and the growing awareness within the clinical field, we believe that Michelson is well placed to accelerate growth in dermatology as well as other clinical application areas in the coming years."

Catalysis Capital Partners Limited advised Michelson Diagnostics on the fundraising and Olswang LLP acted as legal counsel.