Molecular Detection Inc. (MDI), a company developing Detect-Ready(TM) assays designed to increase the speed and accuracy of infectious disease diagnosis, today announced completion of a $3.3 million Series C financing. MDI is preparing to launch its first product, the Detect-Ready assay for the rapid detection of methicillin-resistant Staphylococcus aureus (MRSA), a growing worldwide problem that results in serious illness and death while increasing hospital costs. The company also announced that Todd M. Wallach has been named chief executive officer. Mr. Wallach brings MDI more than two decades of experience in helping to grow successful life sciences enterprises from start-up through global commercialization.

"This Series C financing represents a major milestone for MDI, confirming the promise of our innovative molecular diagnostic technologies and our soon-to-be-launched assay for MRSA screening," said Mr. Wallach. "The Detect-Ready MRSA assay offers healthcare providers a high-performance diagnostic with an unmatched combination of accuracy, speed, flexibility and cost-effectiveness, addressing a market that is expected to exceed $1 billion in annual revenues in the next few years. We are gratified at the strong investor response to this financing, which provides the resources needed to launch our MRSA assay in Europe and the U.S. while also expanding our pipeline of molecular diagnostic tests."

The Series C financing included both existing and new investors and was more than 300% oversubscribed. It was led by MentorTech Ventures II, LP and included new investors Ben Franklin Technology Partners of Southeastern Pennsylvania, Robin Hood Ventures and the Mid-Atlantic Angel Group Fund I and II, LP (MAG). MDI has previously been funded by private investors and founders, the SVM-Israel Opportunity Fund II, LP and the Chief Scientist Office of the Israeli Ministry of Industry and Trade.

"Both the near-term promise of MDI's MRSA assay and the broader potential of its molecular diagnostics technology contributed to our decision to lead this Series C financing," said Boris Kalandar, managing director of MentorTech Ventures and a Board member of MDI. "The fact that the financing was significantly oversubscribed in a challenging market attests to investors' enthusiasm for MDI's approach, and we look forward to working with Todd and his team to help support the company's growth."

As part of the financing, Peter Linder, chairman of the Executive Committee of MAG, is joining the MDI board of directors. He commented, "We view MDI's approach as the right technology at the right time for a changing healthcare marketplace, and we are especially pleased that the company is headquartered here in our region. We believe the strength of the investor response to this financing bodes well for the future of this promising company under Todd's capable leadership."

With more than 20 years of experience in operations, finance and strategy, Todd Wallach is a successful life sciences entrepreneur who has helped found companies with a combined market capitalization of over $500 million. Prior to MDI, Mr. Wallach was chief financial officer of specialty pharmaceutical company Aton Pharma, Inc., where his team increased the company's worldwide product sales from $10 million to $40 million in just two years' time. He was previously vice president of finance and operations and a member of the founding management team of Acuity Pharmaceuticals, Inc., which was acquired by publicly traded OPKO Health. Earlier in his career, Mr. Wallach was a management consultant at Booz Allen Hamilton. Mr. Wallach received an M.S. in technology management from the Wharton School of Business and the School of Engineering and Applied Science at the University of Pennsylvania, an M.S. in biotechnology from the University of Pennsylvania, an M.B.A. from Rider University and a B.S. in mechanical engineering from Purdue University.

"Completion of this successful financing and the recruitment of Todd Wallach as CEO represent an important turning point in MDI's evolution as we move from development to commercialization," said Aryeh Gassel, Ph.D., founder and president of MDI's Israeli subsidiary. "Todd brings a diverse business background to the company, along with a track record of success in developing innovative medical technologies and overseeing global product launches. We believe our novel molecular detection technology has wide application in healthcare and other sectors, and we look forward to working with Todd to ensure the company's rapid progress."