Montréal-based healthtech startup Avitia has launched its cancer diagnostics platform and closed a $5-million seed round, almost two years after purchasing assets from Imagia Canexia Health, which went bankrupt in 2023.
“Avitia believes that all patients deserve access to advanced, cost-effective testing, regardless of geographic or economic constraints.”
James Lumsdaine
The seed round was entirely backed by Imagia Canexia’s former creditor and investor, PacBridge Capital Partners. The two startups share a CEO in James Lumsdaine, who is also a partner at the Hong Kong and Vancouver-based PacBridge.
Avitia aims to bring its virtual cancer diagnostic platform powered by machine learning to more patients, building on the technology developed by Imagia Canexia. The artificial intelligence (AI) integration was developed in collaboration with Mila, Montréal’s foremost AI institute.
Like its predecessor, Avitia is hoping to make cancer diagnostics more accessible and faster to access. It offers genetic screening for cancer mutations on-site, eliminating the need for cancer centres to send out lab tests to third parties, which can be costly and time-consuming.
“Avitia believes that all patients deserve access to advanced, cost-effective testing, regardless of geographic or economic constraints,” Lumsdaine said.
Canexia (formerly Contextual Genomics) was founded in 2012 to develop genetic screening assays for cancer treatment selection and disease monitoring. Canexia merged with Imagia, a digital medical solutions provider focused on data privacy, in 2022.
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Lumsdaine took over as CEO of Imagia Canexia in November 2022, according to his LinkedIn, after PacBridge was already an investor. Imagia Canexia filed for bankruptcy in August 2023. According to bankruptcy documents, Imagia Canexia owed PacBridge $3.1 million when it filed for insolvency.
Canadian VCs BetaKit spoke with indicated Avitia’s investor structure is uncommon, and pointed to conflict of interest concerns as Lumsdaine is both a partner at the firm investing and Avitia’s CEO.
In an interview with BetaKit, Lumsdaine claimed that this arrangement does not represent a conflict of interest because PacBridge is currently Avitia’s sole investor, and said that PacBridge is “fully supportive of the arrangement.” However, he said that the issue will have to be revisited as Avitia looks to bring on more investors. That could mean making changes to the board or recusing himself from certain decisions.
According to Lumsdaine, the Avitia platform efficiently sifts through and analyzes genetic screening data, alleviating the burden on oncologists to pinpoint the “signal from the noise.” The platform then uses machine learning to match patients to a list of potential treatments, taking the patient’s profile and location into account. The oncologist can use this to inform treatment options.
Avitia uses next-generation sequencing (NGS) to screen for cancer-causing mutations in a patient’s genome. The popularity of NGS in the cancer diagnostic space has grown over the past decade, as the technique has become more affordable and efficient.
The healthtech company plans to use the capital to expand beyond North American and Asian markets and add new capabilities to its virtual platform. Avitia claims that its technology has been used in over 40,000 cancer diagnostic tests, performed by its partners.
In addition to Mila, Avitia has partnered with the Gynecologic Cancer Initiative, Calgary-based diagnostic platform OncoHelix, and the Vancouver Coastal Health Research Institute.
Lumsdaine said that broader economic headwinds, including a “horrible financing environment,” led to the bankruptcy. He added that Imagia Canexia was on track to profitability at the time. According to a trustee report, the company struggled to achieve profitability and was unable to raise sufficient capital. However, interest from partners already using the platform led Lumsdaine to consider continuing the mission, the CEO said.
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This time around, the CEO said that Avitia is operating with a leaner team of seven employees and taking advantage of partnerships within Québec to grow the business, including with non-profit organization Genome Québec.
Avitia’s diagnostic technology has shown promising results for identifying recurrences in certain types of cancers, according to Dr. Jessica McAlpine, an oncologist at the University of British Columbia who has collaborated with the company. In a recent study of 44 patients, Avitia’s NGS and tech platform allowed researchers to identify the recurrence of endometrial and ovarian cancers earlier than traditional methods. Three of the study’s authors previously worked for Imagia Canexia Health.
Avitia is hoping to establish a new national program to roll out diagnostic tests, similar to Canexia Health’s Project ACTT, which was supported by the BC government’s Digital Technology Supercluster.
With files from Josh Scott. Feature image courtesy Avitia.