Dublin-based medtech start-up Deciphex has successfully raised €31 million (approximately $32.3 million) in its Series C funding round, a significant step towards addressing the increasing global pathology crisis. The funding was led by Molten Ventures, with notable contributions from various entities including ACT Venture Capital, Seroba, Charles River Laboratories, IRRUS Investments, HBAN Medtech Syndicate, and Nextsteps Capital. The announcement was made on 7 January 2023, underlining the substantial financial backing received by the company since its establishment in 2017.
Deciphex has been at the forefront of utilising artificial intelligence (AI) in digital pathology, providing tools designed to enable pathologists to work up to 40% faster, all while ensuring diagnostic accuracy. The importance of diagnostics is underscored by the fact that approximately 70% of healthcare decisions are contingent upon pathology investigations, as referenced by the National Library of Medicine. However, a concerning trend has emerged, with a growing disparity between burgeoning patient needs and a declining number of pathologists available, resulting in significant backlogs worldwide.
The funds raised in this latest financing round will be instrumental in advancing Deciphex's strategic objectives, which include expanding its footprint in the United States, United Kingdom, European Union, Canada, and Japan. The company's aim is to enhance access to diagnostic services globally, thereby addressing pressing healthcare and pharmaceutical demands.
In addition to scaling its service reach, Deciphex plans to enhance its core platforms, Diagnexia and Patholytix. Diagnexia offers a global digital pathology network that facilitates prompt diagnostics and alleviates backlogs, whereas Patholytix is focused on accelerating drug development through AI-supported workflows. These enhancements intend to bolster efficiency and innovation in pathology services on a worldwide scale.
Deciphex is also poised to develop foundational models for pathology AI by leveraging its extensive repository of pathology images, thereby improving both the speed and accuracy of clinical and research applications. The company aims to strengthen its partnerships with industry leaders like Novartis and Charles River Laboratories, which could further enhance the development of AI models that ensure robust toxicology and preclinical safety evaluations.
Donal O’Shea, Founder and CEO of Deciphex, highlighted the significance of this funding in his statement: “This investment accelerates our mission to transform global pathology access. Our ergonomic, AI-enabled platform enhances diagnostic workflow and accuracy – allowing experts to clear backlogs faster without compromising quality. By expanding this technology worldwide, we’re not just improving healthcare efficiency, we’re supporting both the pathologists who drive diagnoses and the patients who depend on them.”
Inga Deakin, Principal at Molten Ventures, echoed O’Shea’s sentiments, remarking, “Deciphex is tackling one of healthcare’s most pressing issues. By supporting pathologists with AI tools that enhance efficiency without sacrificing accuracy, Deciphex offers a much-needed solution to the diagnostic burden facing pathologists around the world.”
The developments at Deciphex also follow the announcement of a partnership in April with Swiss pharmaceutical giant Novartis for an AI drug research initiative. Last year, Deciphex's chief experience officer, Jenny Fitzgerald, expressed concerns regarding Ireland's pace in adopting AI innovations within the healthcare sector, which underscores the ongoing dialogue about the integration of technology into medical practices. Furthermore, during 2023, Deciphex was recognised as the Irish medtech company of the year by the Irish Medtech Association, affirming its growing influence within the industry.
Source: Noah Wire Services