Commercial-stage precision care company Octave Bioscience has raised significant capital to support its multi-analyte blood testing approach for neurodegenerative diseases. The Menlo Park-based company announced $35.6 million in Series C equity financing plus a $15.5 million term loan from Silicon Valley Bank, positioning the company to expand commercialization of its MSDA test for multiple sclerosis disease activity.
Key Points
- Octave’s MSDA test represents a multi-analyte blood-based testing platform designed to provide quantitative insights for MS disease monitoring, with adoption by over 325 prescribers and delivery of more than 19,000 patient tests to date.
- The financing will support continued commercialization of the MSDA test while also advancing the company’s pipeline in Parkinson’s disease through its partnership with the Michael J. Fox Foundation.
- The financing round included participation from new strategic investors alongside existing backers including Byers Capital, Blue Venture Fund, Northpond Ventures, Casdin Capital, Merck Global Health Innovation Fund, and Novartis.
- Beyond MS applications, the company is developing testing solutions for Parkinson’s disease in partnership with the Michael J. Fox Foundation, with proceeds supporting both current commercialization and pipeline advancement.
Octave’s blood-based testing approach aims to address the challenge of monitoring disease activity in MS patients, potentially offering physicians additional data points for treatment decisions in a field where disease progression can be difficult to track objectively.
The Data
- The company reports delivering more than 19,000 patient tests to date with adoption by over 325 prescribing physicians.
- Octave has achieved in-network reimbursement coverage for over 75 million contracted lives at what the company describes as favorable rates, suggesting initial payer acceptance of the testing approach.
- Total funding consists of $35.6 million in equity financing and $15.5 million in non-dilutive term loan financing from Silicon Valley Bank.
Industry Context
This Series C funding empowers us to establish the Octave MSDA Test as the new standard of care in multiple sclerosis.
Doug Biehn, Chief Executive Officer of Octave
Octave Bioscience operates in the precision medicine space for neurodegenerative diseases, initially focusing on multiple sclerosis with expansion into Parkinson’s disease. The company’s comprehensive testing solutions are designed to provide objective insights for disease monitoring and treatment decisions in conditions where clinical assessment can be subjective and variable. The MSDA test represents the company’s flagship product, described as an approach to MS disease activity assessment through multi-analyte blood testing.
The funding arrives during what the company characterizes as strong commercial momentum, with physician adoption and payer coverage expanding. Strategic investors including pharmaceutical companies Merck and Novartis participated in the round, potentially signaling industry interest in biomarker-driven approaches to neurodegenerative disease management. The company states its mission involves becoming a precision neurology platform addressing conditions including Parkinson’s and Alzheimer’s diseases.
