Glycanostics’ patented technology enables the diagnosis of up to 11 types of cancer. In a new investment round on the Crowdberry platform, the company will use the targeted $10m in capital to develop an already existing, painless and reliable diagnostic method by transferring this tested prototype to new indications such as breast cancer, as well as to cover the associated costs or mass production of the diagnostic test.

Discussions are currently underway with several investment funds for a potential €5m co-investment to complement the €5m funding of this investment opportunity from Crowdberry investors. This creates unique conditions for private investors to participate in the financing of this Slovak Life Sciences company with global potential. This brings the total investment to €10m of growth capital.

• Cost of transfer of the test to the manufacturing site and start-up of mass production
• Coverage of operating costs
• Costs associated with expansion into new markets

After a successful first investment round on the Crowdberry platform, which enabled the development of a unique prostate cancer diagnostic and its launch on the market, the Slovak biotech company Glycanostics is developing a diagnostic for other indications such as breast cancer.

The company was founded in 2017 by two renowned Slovak scientists – Ján Tkáč and Tomáš Bertók. With experience at prestigious foreign universities, more than 160 research papers and 3,900 citations, they are among the world's most respected scientists. They focus on the field of cancer diagnostics through specific biomarkers in the blood, which are also the subject of research by leading pharmaceutical companies. Joining the team as CEO is Eva Kováčová, who has over 28 years of global experience in the pharmaceutical industry.

The company's goal is to bring accurate, non-invasive and affordable blood-based cancer tests to the market, without unnecessary, painful and costly biopsies.

Proof of the company's success is the recent successful launch of the Giasay® PROSTATE product – a prostate cancer diagnostic that is already being actively used by Slovak urologists and patients. The principle on which this diagnostic method is based has the potential to detect other types of cancer, such as breast cancer and nine other types of cancer. The company is currently conducting a pharmacoeconomic study as a basis for future discussions with health insurance companies. After obtaining the CE mark, the company plans to launch the Giasay® test on the Austrian and German market and expand sales through a network of well-known laboratories.

Their innovative method shows increased accuracy compared to procedures currently available in Europe. Glycanostics works with international partners and has the support of experienced professionals from the world of science and business. The company's potential for business success is confirmed by the high scalability of the product and the global commercial potential.

• Scaling risk: high 🔴
  Recruiting the right team members, setting up structures and processes, and managing a large team across multiple markets can be challenging and presents a managerial risk. We expect this risk to be mitigated by the merit of the company's management and sales team, as its members have experience in scaling and managing the company gained from working for multinational companies.
• Technological risk: medium 🟠
  Unexpected pitfalls can often arise during the development and testing of cancer diagnostic products. The risk is partly mitigated by the fact that the core technology, covering 11 cancer types, is already patented and that tests for prostate and breast cancer diagnostics have already undergone a retrospective study and are being optimised for mass production. In order for the company's tests to be mass-produced, it will be important to prepare for large-scale production, obtain CE marking and FDA certification, successfully complete the prospective study, and achieve inclusion in European diagnostic guidelines.
• Financing risk: medium 🟠
  There is a risk of delays or failure to achieve revenues or further funding, either from the licensing partner, or investors in planned further rounds, or from public institutions that provide grants and subsidies for R&D. This risk may adversely affect the growth curve and value development of the company and its shareholders. This risk can be mitigated in part by strict medium-term planning of financial resources.
• Business model risk: medium 🟠                                                          
  The company focuses on exclusive licensing of its technology. However, there is some risk that licensing partners would not be interested in licensing Glycanostics' technology. However, the company has sufficient know-how as well as contacts to start direct distribution of the product on its own. Yet, this alternative would require additional financial resources and a longer time horizon.
• Market risk: medium 🟠
  The evolution of the company's market risk is largely outside management control, with factors such as the geopolitical situation and the financial situation of health insurance companies dependent on the performance of the regional and global macro environment. The diversification of the test offerings across cancer types and indications, the provision of global customer service, the suitability of the test for a private market independent of health insurer resources and the planned collaboration with a licensing partner are factors that significantly reduce this risk.
• Risk of competition: low 🟢
  The market for innovative diagnostics is diverse and fragmented, with multiple major players and new innovative companies. The risk of competing against competitors is to some extent reduced by the intellectual property protection provided by five patents and four trademarks, and by the gradual commercialisation of products, which is not common for competitors at such an early stage of development. In addition, the company is the first in the world to have unique patent protection for the analysis of glycans, which has great potential in the diagnosis of various diseases. The company plans to expand its product portfolio, with a focus on the diagnosis of various types of cancer. This effectively diversifies its offering, differentiates it significantly from competitors, and makes it more attractive as a potential acquisition target, for example for pharmaceutical companies