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Safeguard Scientifics Leads $7 Million Series A Financing for Medivo

November 18, 2011

Wayne, Pa.-based Safeguard Scientifics, a holding company that builds value in growth-stage life sciences and technology companies, announced it has led a $7 million Series A financing for Medivo, a New York-based health IT company that provides data analytics and lab testing services that helps patients and physicians improve health. Medivo has an online, HIPAA-compliant platform which connects patients to a nationwide network of physicians, lab service centers and home testing services.

The financing will support product development and expansion of sales and marketing.

“Recently we announced the combination of our life sciences and technology deal teams to better leverage and take advantage of the synergies between these two industries,” said Peter J. Boni, president and CEO of Safeguard. “On the heels of that announcement, we are pleased to announce our partnership with Medivo, an exciting new opportunity that represents a convergence of diagnostic testing and health IT, as well as the consumerization of healthcare using the power of the Internet. We believe that Medivo is well-positioned for growth as it leverages our strategic growth drivers—Maturity, Migration, Convergence, Compliance and Cost Containment.”

From cholesterol tests to cancer diagnostics and emerging genetic tests, laby testing is a critical component of healthcare. Physicians rely heavily on lab test results and interpretations to make critical decisions that govern patient diagnosis and treatment and dictate resource utilization. While laboratory costs make up 2-3 percent of overall healthcare costs, laboratory services affect 70 percent of all critical clinical decisions, such as admission, discharge and drug therapy. In response to increasing demand, the number of labs expanded greatly over the past several decades. The lab testing industry in the United States is a more than $50 billion market which is expected to double by 2020. Medivo is well positioned to capitalize on these trends by identifying gaps in care and providing convenient access to testing services.

“Medivo’s platform—which includes a national network of clinicians, IT and compliance—improves and increases access to lab testing, identifies patients who need testing and assists them to get those tests, educates patients about those results, and relays information to primary care physicians,” said GaryJ. Kurtzman, MD, managing director in the Life Sciences Group at Safeguard, who will be joining Medivo’s Board of Directors. “Led by a proven, serial entrepreneur—Sundeep Bhan—we believe that Medivo is a game-changer that will allow physicians and patients to make more efficient use of diagnostic testing and become better consumers of healthcare.”


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