Drug Majors’ Venture Capital Funds Back Genetics Start-up

The venture capital arms of two international drugmakers in late January participated in a $20 million Atlas fund-raising initiative to benefit the development of a new quick diagnostic test system for sexually transmitted diseases such as chlamydia.

Atlas plans to launch its first test for chlamydia this year in an effort to improve the currently poor detection rates.

Experts believe Atlas's technology could be a major breakthrough in diagnosing such disease, especially as results can be obtained within half an hour, compared to a waiting period of several days for existing tests that require sending a sample to a laboratory for analysis.

Atlas CEO John Clarkson said obtaining a quick result can be particularly crucial for teenagers, who often have qualms about seeking treatment for potentially serious sexually transmitted diseases.

Companies in the UK life science sector hope that the successful backing of Atlas by the two major healthcare players will whet investors' appetites for more.

According to the investment promotion agency London & Partners, venture capital funding for this sector in the UK increased by 41% to $713 million in 2014, up from $504 million in 2013.