LabNow Gets $20 Million Investment

11.12.2007

LabNow Inc., an Austin biotech company that has developed a portable device that will help treat AIDS patients in Africa and Asia, has secured an investment of $20 million.

The company, which was on a shoestring budget only seven months ago after spending its initial $14 million investment, now has a "chance to do everything we had hoped with this money," CEO Rick Hawkins said. "This is very exciting for us."

The lead investor is Dallas-based Sammons Enterprises, with additional money from Austin Ventures and local private investors.

Hawkins said the $20 million will help the company establish a manufacturing line and conduct clinical trials necessary to win Food and Drug Administration approval for its toaster-size device that can analyze a drop of blood.

Although the technology can be used for many diagnostic purposes, the initial focus is monitoring a particular type of white blood cell in AIDS patients called CD4 lymphocytes, a key factor in determining whether drug treatments are working or need adjustments. Hawkins hopes to sell the device to nonprofits, universities and businesses in African and Asian countries first.

LabNow's device is a lower-cost alternative to current equipment that will transform the way AIDS is managed, Hawkins said.

Joe Skraba, Vice President for LabNow, Inc., graduated from the MSSTC Program in 2003.

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