Startup CS-Keys Prepares for New Venture Capital Funds
By Daniel Lee, The Indianapolis Star
Jan. 29–CS-Keys, an Indianapolis startup developing a new method for the early detection of cancer, is expected to announce today that it has received $6.25 million in funding.
The news comes on the same day that one of the startup’s venture-capital investors, Clarian Health Ventures, is officially launched. Triathlon Medical Ventures of Indianapolis was the largest single investor of the five venture firms providing financing to CS-Keys.
Clarian Health Ventures, or CHV, is an investment subsidiary of Clarian Health, the Indianapolis-based hospital system that operates Methodist Hospital, Riley Hospital for Children and Indiana University Hospital.
CS-Keys grew out of research at Indiana University, which has a licensing agreement with the company.
CS-Keys — for Cancer Specific Keys — has developed a method using biomarkers designed to help pathologists detect the presence of breast cancer in biopsies taken from patients. The company hopes to use its technology to help in the diagnosis of other cancers, including prostate, cervical, ovarian and colorectal.
“We were impressed with the science and the capabilities that the management team brings to the table,” said Matthew Neff, president of CHV.
Dr. Linda Malkas, CS-Keys co-founder as well as the Vera Bradley Chair for Oncology and a professor at Indiana University School of Medicine, isolated a specific protein present in breast cancer as well as many other forms of cancer. She and her research team at IU then developed an antibody that identifies that protein in cells.
CS-Keys’ first product, expected to launch in April, is a stain for use by pathologists. When applied to biopsied tissue, it turns the nuclei of cancerous cells brown. The healthy ones turn blue.
Malkas compares the process to studying a photo of an empty RCA Dome in search of a few misshapen seats: the bad seats turn brown and the good seats turn blue.
The research also may be helpful in developing drugs that specifically attack cancer cells, while sparing a patient’s healthy cells, she said.
Claire Deselle, chief executive of CS-Keys, said the stain will sell for about $200 to $400 per biopsy. She said the $6.25 million investment will help the company operate through early 2009.
CS-Keys has five employees and is headquartered near Indianapolis International Airport.
In addition to Triathlon and CHV, other venture firms investing in CS-Keys are Spring Mill Venture Partners of Indianapolis, Prolog Ventures of St. Louis and Ceres Venture Fund of Evanston, Ill. CS-Keys was the first investment in Indiana for Prolog and Ceres.
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