Germany-based Spindiag bags €15M EIB loan for its rapid PCR testing platform

Freiburg, Germany-based Spindiag, a vitro diagnostics startup focused on keeping patients and hospitals safe from pathogens causing infectious diseases, announced that it has received a €15M loan from The European Investment Bank (EIB). 

The EIB loan is covered by the Infectious Diseases Finance Facility (IDFF) of the European Union. 

The IDFF provides financial products ranging from standard debt to equity-type funding for amounts between €7.5M and €75M. It invests in “innovative” players active in developing or manufacturing innovative vaccines, medicines, medical and diagnostic devices, or novel research to combat infectious diseases.

The point-of-care solution to control infectious diseases

Spindiag was founded in 2016 by a team of internationally renowned experts in the fields of microfluidics, lab-on-a-chip technology, and life sciences as a spin-off from Hahn-Schickard and the University of Freiburg. Founders include Dr Daniel Mark, Dominique Kosse, Dr Frank Schwemmer, Dr Gregor Czilwik, Dr Mark Keller, Dr Oliver Strohmeier, and Dr Michael Lauk.

Spindiag is an in vitro diagnostics startup. Its automated Rhonda PCR system comprises an analyser, the Rhonda player with an insertable test cartridge, and a Rhonda disc. This technology makes it simple to integrate reliable, laboratory-grade PCR test findings into routine clinical practice in well under an hour.

To safeguard patients and medical staff from potentially dangerous microorganisms, the system was created for precise infection control at point of services such as hospital wards or emergency rooms.

Swab samples may be placed directly into the test cartridge without the need for manual pipetting, and comes pre-stocked with all the chemicals needed for testing. By doing this, consumers can save time and drastically lower their chance of contracting an illness.

The current Rhonda test portfolio includes a PCR test for SARS-CoV-2, a combination test for the differentiated detection of SARS-CoV-2, Influenza A, Influenza B, and the Respiratory Syncytial Virus (RSV), including one test for Methicillin-resistant Staphylococcus aureus (MRSA), a drug resistant bacteria. 

The company plans to further extend its testing platform to detect up to 36 pathogens in less than one hour in the future.

Capital utilisation

Spindiag says the funds will help it to further develop and commercialise its rapid PCR testing platform, addressing SARS-CoV-2 and other major infectious pathogens. The funds will also help the company in expanding from Germany into other European markets.

Spindiag co-founder Daniel Mark says, “By simply providing diagnostic results, Spindiag is providing an innovative infection control solution. We are pleased that the EIB has recognised the potential of Rhonda and supports us in addressing the threat of infectious pathogens for healthcare professionals and patients. The EIB capital helps Spindiag in the all-important development of further tests in infection control, ensures expanded production capacities and will help us to implement commercial expansion plans more quickly.”

Brief about EIB

The EU’s long-term financing organisation is called the EIB, and its Member States own it. It provides long-term financing for sound investments in order to support EU policy objectives. Infrastructure, innovation, climate and environment, and small and medium-sized enterprises are the bank’s four top priority areas for project funding.

The current deal is being conducted through the Infectious Diseases Finance Facility (IDFF), a high-risk financial vehicle created under the InnovFin initiative of the European Union. With the help of the IDFF, the EIB is able to finance high-risk projects where the risk is associated with the successful development of a substance, medication, or medical device, as well as its potential future commercialisation. The EIB’s risk is fully covered by the European Commission.

EIB’s VP, Ambroise Fayolle, who is responsible for the EU bank’s operations in Germany, says, “The EIB supports Spindiag’s research because infectious pathogens in hospitals have become a challenge that has to be addressed with innovative approaches, such as that of Spindiag. The IDFF instrument under InnovFin has proven itself useful in medical research.”