Investors back Kiwi med-tech company’s global growth

Media release

11 December 2014

Investors back Kiwi med-tech company’s global growth

Sophisticated investors are backing Kiwi med-tech company Matakina Technology as it launches a major growth phase of its world-leading Volpara Solutions breast imaging software after completing an oversubscribed investment round.

The Wellington-based company has raised $5.5 million, including $500,000 of oversubscription, from high net worth investors and fund managers from Australia and New Zealand - including the Milford Active Growth Fund.

“Investors understand that the time is right, the market is ready and that Volpara Solutions is at the forefront of a global revolution in breast screening. They want to be part of it,” says Matakina chief executive Dr Ralph Highnam.

Matakina’s Volpara Solutions, which helps early diagnosis and treatment of breast cancer through accurate breast density assessment, has already achieved significant global success. It has 157 installations in 32 countries and is proven to be a superior product by a range of independent clinical research.

Dr Highnam says the company is now set to tap into the global breast screen imaging market worth around $1.5 billion annually.

“With this new capital under our belt, we’ll be pushing Volpara sales and marketing further into the US, Europe and Asian markets. We will also be using the funds to migrate Volpara to the cloud.”

Craigs Investments Partners was retained to advise on the investment round. James Beale from Craigs says Matakina is a highly attractive investment as an emerging New Zealand med-tech company that’s built a niche very quickly in a growing global market, and has proven it’s a leading product through sales success and independent research validation.

“Furthermore, Matakina operates in a specialised market, with a highly skilled sales team based in the USA. With a number of growth opportunities ahead, the company is now positioned to increase sales quickly and move towards profitability.”

“Matakina’s product helps to improve the efficiency of breast cancer screening and is gaining public interest, and revenues, in the US and European markets. We found the combination of strong governance, experienced management and proven sales track record, coupled with its unique product, an attractive combination” says Brooke Bone of Milford Funds Limited.

Dr Highnam says the business has recently completed installations in Turkey and Thailand, with several more in the pipeline. Matakina is also waiting to finalise a contract with a multi-national conglomerate corporation that will embed the product in the market globally.

BACKGROUND:

Matakina was founded in 2009 by a group of physicists, cancer and medical imaging specialists to develop technology giving better information about breast density – a cancer risk that also masks tumours in mammography. So far it’s been used to detect up to 4500 hidden tumours.

In August this year, Volpara Solutions, designed and developed by Matakina in Wellington, was named winner of the 2014 North American Frost & Sullivan Award for Technology Innovation Leadership, part of the global market research and growth consultancy’s annual Best Practices Awards.

www.volparasolutions.com

© Scoop Media