The KC Animal Health Corridor is pleased to join Advanced Animal Diagnostics (AAD) in the recent announcement that the company closed a $15 million Series C round of equity financing. AAD presented in 2009 and 2011 at the KC Animal Health Investment Forum, a global event that has helped early and mid-stage animal health companies raise more than $150 million over the past six years.
“The Animal Health Investment Forum is a one-stop shop for meeting potential partners in the space,” said Joy Parr Drach, president and CEO, Advanced Animal Diagnostics. “This funding is just one example of how relationships we formed there years ago have continued to help AAD as we developed, commercialized and are now expanding our platform to empower producers to make real-time management decisions and rapidly detect disease on-farm.”
AAD develops on-farm diagnostic technologies that change the way livestock producers manage animal health and costly diseases. The company launched its first commercial products, QScout MLD test and QScout Farm Lab, in 2013 to detect subclinical mastitis in dairy cows. Large-scale trials on commercial dairies demonstrated that the technology significantly improves producers’ financial returns by preventing milk and reproductive losses, safeguarding animal health through earlier detection and promoting more judicious use of antibiotics.
The company expects to advance the development of additional livestock tests for dairy and beef markets, invest in production and manufacturing, and expand commercial efforts for new and existing customers with this financing. AAD plans to conduct limited product development research with the Kansas State Veterinary Diagnostics Lab in Manhattan, is working with a Lenexa manufacturer to make components of the Qscout Lab, and plans to establish a sales office in Western Kansas to support its current dairy product and future feedlot products.
“The KC Animal Health Investment Forum is the place where companies can make the right connections to advance their technology,” said Kimberly Young, vice president of biosciences development, Kansas City Area Development Council. “Success stories like AAD is proof that the KC Animal Health Corridor is a major hub for driving innovation into the animal health industry.”
The financing was co-led by Cultivian Sandbox and Kansas Bioscience Authority, both long-time supporters of the KC Animal Health Investment Forum, and included Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH), Middleland Capital, and existing investors Intersouth Partners, Novartis Venture Funds and private individuals. The investment will allow AAD to accelerate the commercialization of its current product offering, QScout® MLD (milk leukocyte differential) test, while also expanding the company’s product line.
“Bringing AAD to the Corridor positions Kansas as a growing dairy state, as well as an innovative state that is bringing new technologies to the dairy market,” said Tony Simpson, managing director, Kansas Bioscience Authority. “The KC Animal Health Investment Forum showcases the most innovative companies in animal health today, and AAD is the second presenting company to receive KBA funding to date.”