Rand Capital Portfolio Company, Rheonix Inc., to Launch Rapid, Fully Automated Coronavirus Disease 2019 (COVID-19) Assay
March 19 2020 - 4:15PM
Business Wire
Assay to provide small and medium-sized labs
access to fast, cost-effective, sample-to-answer testing for public
health threat
Rand Capital Corporation (Nasdaq: RAND) (“Rand” or “Rand
Capital” or the “Company”), a business development company,
announced that its portfolio company, Rheonix Inc. is developing a
coronavirus (COVID-19) test kit for use on its Encompass MDx®
workstation. Upon Rheonix’s receipt of emergency use authorization
(EUA) from the Food and Drug Administration (FDA), the new test
will allow for the fully automated detection of SARS-CoV-2 in
respiratory specimens, facilitating testing at small and
medium-sized labs in distributed locations.
The Rheonix system is a fully automated, sample-to-answer
microfluidic system that provides test results in four hours and
requires no technician involvement after the sample is loaded. The
workstation automatically introduces clinical specimens directly
from their barcoded collection tubes into the wells of the
microfluidic Rheonix CARD® cartridges, and processes all virus
detection reactions on the cartridge within the closed workstation.
Once the test is completed, all biological waste remains enclosed
in the disposable cartridge and is destroyed. The fully enclosed,
self-contained workstation and cartridge system eliminate the
technician’s need to handle the sample and reduce the possibility
for spread of the highly communicable virus.
“A fully automated sample-to-answer testing solution that can be
reliably run by small and medium-sized labs will be critical in
mobilizing local and regional health networks to fight the COVID-19
public health emergency,” said Richard Montagna, Ph.D., FACB,
senior vice president for scientific and clinical affairs, Rheonix.
“We are grateful that the FDA is providing the flexibility
necessary for innovative companies like Rheonix to act quickly to
put testing in the hands of those most in need of rapid and
dependable methods to control the spread of this virus.”
Allen F. (“Pete”) Grum, President and Chief Executive Officer of
Rand Capital, commented, “We are proud to support Rheonix’s
important mission of improving standards of care by making
molecular diagnostics widely available. In this instance, the
company has responded quickly to the needs of the healthcare
community in helping to address the global coronavirus pandemic,
demonstrating their nimbleness.”
Rheonix is working with a consortium of leading New York state
collaborators to test and validate the assay. Inactivated samples
of the coronavirus are being provided by ZeptoMetrix, a
Buffalo-based company that manufactures biological material for
diagnostics development. A leading New York health care network is
providing clinical samples and expertise, and Gregory Wilding,
Ph.D., chair of the biostatistics department of the University at
Buffalo School of Public Health and Health Professions, will
validate the results. Rheonix anticipates submitting an emergency
use authorization (EUA) to the FDA on the Rheonix COVID-19 MDx
assay for the detection of SARS-CoV-2 as soon as validation is
complete.
The fair value of Rand’s investment in Rheonix was approximately
$703,000 as of December 31, 2019.
ABOUT RHEONIX
Rheonix has developed the suite of Encompass workstations, fully
automated systems that provide highly multiplexed sample-to-answer
molecular testing for use in clinical, research and applied testing
laboratories. With minimal hands-on time, the Encompass systems
offer true walkaway simplicity. Rheonix’s growing portfolio offers
multiplexed testing solutions including the Beer SpoilerAlert™
assay, the most comprehensive beer spoilage panel available; the
Listeria PatternAlert™ assay, a rapid method for Listeria strain
typing; and the NGS OnePrep™ solution, a fully integrated and
automated DNA extraction and library prep solution. The Rheonix STI
TriPlex™ Assay and Rheonix Encompass MDx® workstation are currently
undergoing FDA 510(k) review. For more information, visit
www.rheonix.com.
ABOUT RAND CAPITAL
Rand Capital (Nasdaq: RAND) is an externally-managed Business
Development Company (BDC) with a wholly-owned subsidiary licensed
by the U.S. Small Business Administration (SBA) as a Small Business
Investment Company (SBIC). The Company’s investment objective is to
maximize total return to its shareholders with current income and
capital appreciation by focusing its debt and related equity
investments in privately-held, lower middle market companies with
committed and experienced managements in a broad variety of
industries. Rand invests in early to later stage businesses that
have sustainable, differentiated and market-proven products,
revenue of more than $2 million and a path to free cash flow or up
to $5 million in EBITDA. The Company’s investment activities are
managed by its external investment adviser, Rand Capital
Management, LLC. Additional information can be found at the
Company’s website where it regularly posts information:
https://www.randcapital.com/.
Safe Harbor Statement
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the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than historical facts, including but
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and Rand Capital SBIC, Inc. (“Rand SBIC”) to elect to be taxed as a
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a special cash and stock dividend; the expected timing for the
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Company’s accumulated earnings and profits; the intention to adopt
a new dividend policy that includes regular cash dividends to
shareholders; the expected benefits of the transaction such as a
lower expense-to-asset ratio for Rand Capital, availability of
additional resources and an enhanced investment team; the
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report on Form 10-K for the year ended December 31, 2019, later
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such forward-looking statements should be regarded as Rand
Capital’s current plans, estimates and beliefs. Except as required
by applicable law, Rand Capital assumes no obligation to update the
forward-looking information contained in this release.
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version on businesswire.com: https://www.businesswire.com/news/home/20200319005779/en/
Company: Allen F. ("Pete") Grum President and CEO Phone:
716.853.0802 Email: pgrum@randcapital.com
Investors: Deborah K. Pawlowski / Karen L. Howard Kei
Advisors LLC Phone: 716.843.3908 / 716.843.3942 Email:
dpawlowski@keiadvisors.com khoward@keiadvisors.com
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