U of M Start-Up Orasi Medical Ceases Operations
Orasi Medical-a University of Minnesota software start-up that had raised at least $8 million since its founding in 2007-has reportedly closed its doors.
According to MedCity News, the St. Louis Park-based company, which was marketing its technology to drug companies, had inked licensing deals with pharma giants like Novartis.
The company's founder and previous chief executive, Shawn Lyndon, used to be CEO in residence at the University of Minnesota. Citing his LinkedIn profile, MedCity News reported that Lyndon left Orasi Medical in January 2011, and Rajiv Khosla took the reins in May.
Based on the LinkedIn profile of Sarah Haecker, who was Orasi's vice president of pharmaceutical business development, the company appears to have ceased operations in December, MedCity News reported.
Frank Jaskulke, director of member services at local trade group LifeScience Alley, told MedCity that Orasi Medical was in the process of selling the parts of its intellectual property that weren't licensed to the university. He said Orasi didn't fail because of “bad management” and that the firm had reached a point in its young life when a decision needed to be made about whether to move forward.
Orasi Medical launched aiming to use its software to develop the country's first U.S. Food and Drug Administration-approved device to diagnose Alzheimer's disease.
Later on, the company, which owned what it claimed was the largest commercial database of magnetoencephalography (MEG) scans, changed course, according to MedCity News. Orasi reportedly said it was the only provider of MEG biomarkers-genetic clues that scientists use to identify diseases-and began working with drug companies interested in using the database to determine whether they should invest in pursuing a therapy.
To read the full MedCity News report on Orasi Medical's closure, click here.