Owlstone Medical mission gets $27m Series E financing boost
Owlstone Medical has announced a first close of its $27million Series E financing round, which will be used to develop its proprietary Breath Biopsy platform, including in clinical trials.
The round was led by Ventura Capital, joined by Aviva Ventures, Horizons Ventures, and other existing investors.
The close also saw completion of the investment from the Gates Foundation, which commenced in April 2024. The investment comprised a $5m equity investment to advance Owlstone’s Breath Biopsy platform and a $1.5m grant to develop breath-based diagnostics and identify breath biomarkers for tuberculosis and human immunodeficiency viruses.
Founded in 2016, Owlstone Medical’s goal is to save 100,000 lives by realising the enormous promise of breath-based diagnostics through the development and application of its Breath Biopsy device, which was launched in 2017. A Series D raise in 2021 netted £42m.
Breath Biopsy determines the chemical make-up of breath by measuring volatile organic compounds (VOCs), gaseous molecules that can be sampled quickly – even from home – and non-invasively. VOCs originate from all parts of the body as the product of metabolic processes, making Breath Biopsy applicable to a wide range of diseases.
Breath also contains exhaled aerosols and respiratory droplets from the lungs and airways, which can contain a wide range of biomarkers including viruses such as coronavirus.
The funds will support the ongoing development of Breath Biopsy and the development and commercialisation of novel diagnostic tests and point of care devices.
These include in-human clinical trials currently under way for a screening test for the early-stage detection of lung cancer; further development and launch of the LIBRA test for the primary care and at-home diagnosis of chronic liver diseases, which account for more than 2 million deaths worldwide annually; and commercialisation of the OMED Health Breath Analyzer, a hand-held, low-cost medical device for the diagnosis and monitoring of digestive diseases that affect 1 billion people globally.
Mo El Husseiny, founder and managing partner at lead investor Ventura Capital, said: “The enormous potential of breath-based diagnostics is becoming clearer every day, with Owlstone as the main driver of progress in the space.
“Our initial thesis has been confirmed through Owlstone’s recent partnerships with the US Department of Defence, the Gates Foundation, and the FDA (the US Food and Drug Administration).
“We are pleased to support their ongoing development of Breath Biopsy, which has been proven by the first products approved in market in the US and UK.”
Tom Grant, head of venture investments at Aviva Investors, said: “Owlstone has made tremendous progress since their last fundraise. This includes their proprietary Breath Biopsy platform and VOC Atlas database, and in developing diagnostic solutions in high need clinical areas with products now reaching the market. Aviva Ventures has been an early investor in the business, and we remain confident in Owlstone and its future impact on healthcare.”
Billy Boyle, co-founder and CEO at Owlstone Medical, said: “Testament to the power of Breath Biopsy is the continued strong support we continue to enjoy from our investors.
“The funds closed will enable us to progress our business to the next stage, advancing clinical trials and supporting the launch and commercialisation of our pipeline of unique breath tests.”
