[Alpha Biz= Kim Jisun] Osang Healthcare announced on Thursday that it has executed a follow-up investment of $2 million in Cryptos Biotechnology, a U.S.-based molecular diagnostics device developer.
Founded in Silicon Valley in 2017, Cryptos Biotechnology is developing point-of-care molecular diagnostics devices (POC-MDx). In March last year, Osang Healthcare participated as a strategic investor in the company’s Series A funding round, committing a total of $10 million (approximately KRW 14.4 billion), of which $5 million was paid immediately. This recent investment is part of the follow-up funding agreed upon at the time, contingent on the achievement of certain technical milestones.
The molecular diagnostics market is currently dominated by tests conducted in central laboratories at large hospitals or outsourced testing centers. However, the COVID-19 pandemic highlighted the growing need for point-of-care molecular diagnostics devices capable of providing rapid results in various healthcare settings, including small and medium-sized hospitals.
Despite the rising demand, companies face significant challenges in entering the market, as these devices must offer high accuracy, speed, affordability, user-friendliness, and scalability to be viable.
PCR testing involves extracting genetic material from a sample, amplifying it through repeated heating and cooling cycles, and detecting specific genes to determine the presence of pathogens. Cryptos Biotechnology's core technology is an ultrafast photonic PCR system that utilizes photothermal heating—generating and precisely controlling heat with light—to significantly reduce amplification time. This innovative approach is protected by over ten patents.
The company plans to integrate this technology with automated analysis capabilities that eliminate the need for complex sample preparation and specialized knowledge. Additionally, Osang Healthcare’s expertise in reagent lyophilization and development will be applied to create a product that meets market demands.
Cryptos Biotechnology’s photothermal PCR-based POC system is considered the closest to commercialization among its kind. The company aims to conduct clinical trials in the U.S. this year for its first product, a respiratory infection diagnostic device, and is targeting U.S. Food and Drug Administration (FDA) approval in 2025.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
