Posted on 7th February, 2017
Posted on 7th February, 2017
by DR. DAN DALY
FOUNDER & CEO
Taking The Leap: Why I Diversified Into New Markets
We set out in 2003 to address the diabetes management market and find a non-invasive way for the hundreds of millions of people around the world with diabetes to measure their blood glucose levels and manage their condition, painlessly.
We saw success with our first prototype meters, which use a scanning confocal system to measure the glucose levels in the eye without the need for any actual contact. Our technology was approved by the MHRA for use in clinical trials and we obtained strong data demonstrating the correlation between Lein’s measurement and a gold standard meter, filing nine patents (eight of which are granted, one pending) and generating significant interest from the diabetes community.
Having developed the technology for glucose measurement in diabetes, we attracted the attention of other companies working in both the medical and broader industrial markets, who saw the potential of our technology to be used in additional applications that served their markets.
As a result of this attention, we looked at how we could expand into the pharmacokinetics (how drugs move around the body) and industrial metrology markets (making sure equipment used in industry is working accurately and is suitable for the job), alongside the original diabetes care application. By extending our portfolio we were able to increase our revenues, which provides significant downside risk mitigation and helps to support the development of the original glucose meter. In addition, technical advances for one market invariably transfer across to improve the meters for the other markets, further helping our R&D advances.
As a result, we are now working with key customers who each have the potential to generate revenues in the millions of pounds per year. The strategy is typically to work with the customer to incorporate Lein’s technology into their product design. Once the design phase is complete, repeat revenues grow rapidly and we maintain that growth because of the large barrier for our customers to change provider, which ensures long term stability.
For the pharmacokinetics products, Lein is working with leading academics and key opinion leaders in the field to develop the bridgehead products. For diabetes care, we are in discussion with large corporates to partner in the development of the meter. This approach minimises the potential dilution for existing investors.
When I first developed the technology for the optical glucose meter, I never anticipated all the exciting companies and applications I’m now working on. However, 13 years along the line, my technology is having a positive impact on how things are done in multiple applications across different markets and I for one look forward to seeing where Lein’s technology will be used in the next 13 years.
Lein Applied Diagnostics is currently open for investment. Read more here.