IOP Groups
Photonic Materials LTD secures £3.75 million in third round funding
Photonic Materials Ltd, the Scottish based developer and manufacturer of optical crystals for emerging technology applications, has secured £3.75 million (~$6.75m) in a third round of funding from existing investors 3i, the Royal Bank of Scotland and Scottish Equity Partners. 3i has invested £1.75 million with RBS committing £0.9 million, SEP £0.85 million and £0.25m from management.
The £3.75 million raised in the current finance round will be used to increase Photonic Materials' production capacity, enabling it to capture a large share of the fast-expanding market for crystals used in medical imaging equipment.
Working with leading customers in the industry, Photonic Materials has introduced novel detector crystal products for next generation Positron Emission Tomography (PET) body scanners. PET is a unique imaging modality that enables earlier diagnosis and improved monitoring in oncology, neurology and cardiology. The US PET scanner market alone has grown from virtually nil in 1998 to $650 million in 2003, and is expected to exceed $1b in 2005
Crystals are critical to the cost and performance of PET scanners and Photonic Materials has already secured a leading position in this market with its new LYSO crystal. LYSO provides improved performance and lower cost than competing crystals, facilitating improved image quality and shorter patient scan times. The next generation LuAP crystal, currently in development, is expected to achieve even higher performance levels, enabling 'time of flight' PET scanners to be produced.
Dr John Nicholls, Chief Executive at Photonic Materials commented: "Photonic Materials is passionate about the development of advanced crystal products that will enable our customers to deploy faster PET scanners, that produce improved image quality. This finance will allow our products to be deployed in high volume next generation PET scanners, leading to improved patient outcomes. Our rapid transition into the PET sector has been achieved through superb execution by our team and tremendous support from our investors. We are very happy to have the continued backing of 3i, Royal Bank Ventures and Scottish Equity Partners."
Robin Marshall, Director of 3i Scotland added; "The backing of Photonic Materials for a third time clearly demonstrates our commitment to the Scottish technology market. John and his team have driven the company on from strength to strength, successfully building its management team and repositioning its technology in the light of changing market trends. Through this they have built a very strong business capable of capitalising on the needs of the medical imaging market."
Andrew Davison, Director of Scottish Equity Partners' Information Technology Group, said:
"Following the collapse of the telecoms market in 2001, we have seen Photonic Materials very successfully reposition itself to address the emerging medical imaging market. The company is now firmly established as a key supplier to the major players in that space and this funding will enable it to build upon those relationships, driving sales growth and taking the business into profitability."
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