The Maryland Technology Development Corporation (TEDCO) announced that two companies received $400,000 in funding through its Life Science Investment Fund (LSIF) – one of TEDCO’s Seed Investment Funds.
TEDCO is the go-to source for entrepreneurial support and guidance for start-ups and early-stage companies engaged in bringing innovative ideas to market. For over fifteen years, the organization has provided funding, mentoring and networking opportunities to support Maryland’s innovation ecosystem. It is frequently ranked as one of the most active seed/early-stage investors in the nation.
“The Life Science Investment Fund exists to meet the needs of Maryland companies developing products addressing human health that require approval from the U.S. Food and Drug Administration for commercialization,” stated TEDCO President and Chief Operating Officer John Wasilisin.
Each company will receive $200,000. The two companies were evaluated by a review panel consisting of FDA consultants, investors, and C-level biotechnology and life science executives, and others. The companies included Promaxo, Inc. a medical device company developing and commercializing an office-based, portable MRI with cellular level spatial resolution and real-time biopsy and treatment tools. Their patented MRI technology takes advantage of proprietary ultra-fast and strong rise-and fall gradients and pre-polarization fields, which can be switched on rapidly without causing bio- effects (e.g., nerve stimulation).
Promaxo’s MRI platform technology is protected by 17 issued and pending patents and has successfully undergone a 26-patient safety trial. LSIF funds will be used in finalizing the clinical prototype, and performing phantom and animal validation studies for FDA 510K submission.
“These ‘lifescience/biohealth’ start-ups face a long runway to commercialization, requiring multiple investment rounds based on critical product development success,” stated LSIF Manager, Dr. Arti Santhanam. “The TEDCO investments will help these companies bridge the gap to FDA approval while improving their company valuation to help raise capital from sophisticated investors. In fact, two of our current portfolio companies have already successfully raised follow-on capital.”
The other company selected, SAJE Pharma, is a developer of a new therapy for the treatment of patients with interstitial lung diseases (ILD), specifically idiopathic pulmonary fibrosis (IPF).
LSIF makes investments of up to $200,000 for a period of one year to support milestone-based projects that advance their medical product toward commercialization. Investments are made in the form of a five-year, convertible note to the company.
For more information on Promaxo, visit the company’s website.