Indy lab company secures $30M seed investment

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Indianapolis-based Strand Diagnostics LLC will receive up to $30 million in investment capital over the next three years from Los Angeles-based NantWorks LLC, a seed-stage investment firm, the companies announced this week.

Strand Diagnostics makes the Know Error system, which uses bar coding and DNA matching to make sure biopsy samples are matched to the correct patients when submitted to its labs for testing.

The investment capital will help it scale up its operations and sales efforts, the company said in a news release.

"The Know Error founding team has laid the groundwork for an innovative system that improves patient safety and diagnostic accuracy,” NantWorks CEO Patrick Soon-Shiong said in a prepared statement. “Their products fit directly into our vision of quantitative medicine and next-generation personalized medicine.”

NantWorks is the same company that announced in January it would sink $85.5 million into a former Pfizer Inc. plant in Terre Haute to produce injectable drugs for use in cancer patients and in critical care situations.

NantWorks predicted the plant would employ 234 people by 2016.

Strand Diagnostics, which operates a testing lab south of Indianapolis International Airport, launched Know Error in 2009. The company has 58 employees, with 48 of them in Indiana.

“NantWorks and Dr. Soon-Shiong provide additional resources, experience, and relationships that will help to grow our platform more quickly,” Know Error President Ken Cerney, said in a prepared statement.

 

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