New Investment Opportunity: OncoHost
Enabling personalized cancer treatments
- Clinically proven, IP-protected, first of its kind, simple blood test analyzes using AI blood proteins to predict effectiveness of cancer immunotherapy on a specific patient - instead of discovering outcome up to 6 months into treatment
- Increases current 20% chance of treatment success, significantly cuts misapplication costs of up to $100K per patient
- Clear path to market; Lab opened in NC, Jan 2022; CLIA certification due Q2 2022; commercialization to start Q3 2022, projected revenue $1M in 2022, $7.3M in 2023
- Partners include Somalogic (NASDAQ:SGLC), Mayo Clinic, Yale, IBM Research, CNR, Weizmann Institute, Technion
- Guardant Health, valued at $6.4B, checks 70 genes, while OncoHost scans 7,000 proteomic biomarkers
- Up to $35M Series C led by new investor Alive VC; existing investors include Caesarea Medical Holdings, IHC
Dear Josb,
The very same cancer treatment that can save one person's life can be totally ineffective, or even cause harm, to another patient. As some courses of treatment cost over $100,000, and treatment outcomes are discovered long after treatment starts, knowing beforehand whether it will be effective is a vital economic question for the medical system and a matter of life or death for the patient.
OurCrowd is reinvesting in OncoHost, an Israeli company that uses AI and proteomics - the large-scale study of proteins - to predict with high accuracy which patients will respond to which immunotherapy or combination treatment. The details in this email are based on information received from, and verified solely by, the company.
The Problem
Immunotherapy is a life-saving treatment for 20% of treated cancer patients. For the remaining 80%, it does not work and can even cause harm. Patients can lose precious time as the outcome is revealed only 3-6 months after treatment begins, costing up to $100,000. Quickly determining which patients respond to immunotherapy is vitally important for the treatment outcome, and financially crucial to avoid wasting precious healthcare resources.
The Solution
Precision medicine is often based on genetic information about the patient. Genetics, however, is suitable only for that section of the population that expresses driver mutations and only tells part of the story. The interaction between the patient's body (the "host"), the treatment, and the tumor is complex. OncoHost's proprietary system understands this complex interaction. It can predict the likely response of the patient to treatment before it starts and give suggestions that will achieve best outcomes.
The Company
OncoHost plans to begin commercialization at the start of Q3 2022, projecting revenue of $1M this year and more than $7M in 2023. The company delayed introduction by six months in order to launch with a more mature product that only requires a single blood test and a better and cheaper protein panel that scans 7,000 proteins instead of 400, reducing cost by 50%. OncoHost's go-to-market strategy, mirroring the success of other companies in the field, is to launch as a lab development test that will be performed through its new CLIA-certified lab in North Carolina, which opened in January, 2022, and is expected to receive final CLIA certification in Q2 2022. In the future, reimbursement will be through the advanced diagnostic laboratory test framework. Latham & Watkins in Washington are the company's reimbursement advisors. OncoHost expects that reimbursement will be received 6-24 months after launch.
The Partners
OncoHost's partners include Somalogic (NASDAQ:SGLC), Mayo Clinic, Yale, IBM Research, CNR, Weizmann Institute, and the Technion-Israel Institute of Technology.
The Sector
Precision oncology is a hot field. Guardant Health, whose diagnostic is based on analyzing 70 genes, is valued at $6.4B. OncoHost scans 7,000 proteomic biomarkers.
The Round
This up to $35M Series C round is led by new investor Alive. Existing investors include Caesarea Medical Holdings and IHC. Funds will be used to launch commercialization, expand the platform to include additional indications, open OncoHost USA and OncoHost Abu Dhabi, and continue R&D.
Meet the CEO
We're hosting a webinar on Monday, February 21st, at 7PM Israel / 12 Noon New York / 9AM San Francisco for investors to meet CEO Dr. Ofer Sharon and learn more about OncoHost.
Can't make the webinar? Register and we will send you a recording of the call.
The OncoHost Solution
PROphet® (Predicting Responsiveness in Oncology Patients Based on Host Response Evaluation During Treatment) uses proteomics - the large-scale study of proteins - to provide clinically meaningful information allowing oncologists to tailor treatment plans for individual patients.
OncoHost has applied machine-learning algorithms and bioinformatic tools to develop proprietary sets of blood-based proteomic biomarkers that reflect these host responses to therapy.
A single blood test provides 12-month response foresight and treatment guidance. The results are based on analysis of 7,000 blood proteins.
PROphet has demonstrated excellent sensitivity and specificity for two indications, non-small cell lung cancer and melanoma. The test not only predicts how well the patient is likely to respond to the treatment being given, it also identifies proteomic patterns associated with resistance to treatment and matches approved or investigational drugs that may benefit the patient.
The company has 10 patents protecting its technology.
Next steps:
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