Back Row from Left: Orla Rimmington, Operations Director, Kernel Capital; Eric Reed, Partner, Enterprise Equity; Donal Duffy, Head of Enterprise Ireland Relations, Bank of Ireland; John Kelly, Senior Manager, SME Business, AIB and Dr. Alan O’Connell, Partner, Seroba Kernel; Front Row: Ernest Poku, CEO, Crescent Diagnostics.

CORK Ireland, 23 June 2011: The Bank of Ireland MedTech Accelerator Fund has participated in a €1.5m syndicated investment in University of Limerick spin-out Crescent Diagnostics Ltd (“Crescent”), a Medical Diagnostics Company. The investment comprises of a €500k investment by the Bank of Ireland MedTech Accelerator Fund with the remainder of the funds provided by AIB Seed Capital Fund, co-managed by Enterprise Equity and existing investor Seroba Bioventures.

The Company will use the funds to support the development of BQT®, a predictive test for osteoporotic fracture. Osteoporosis is a degenerative bone disease affecting an estimated 300,000 people in Ireland and 200 million women worldwide. Crescent’s diagnostic test will enable physicians to diagnose the risk of osteoporosis-related fracture both quickly and easily, using a small nail clipping. The current gold standard screening method, Dual X-ray Absorptiometry (DXA), is costly, time consuming for patients and only assesses bone mineral density (BMD), which is only one of many risk factors contributing to bone fractures. Many patients with apparently acceptable BMD values have still suffered fractures therefore enhanced tests are urgently required.

Commenting on the announcement, Orla Rimmington, Operations Director, Kernel Capital said: “We are delighted to support innovative Irish companies like Crescent. On average every 3 seconds someone in the world suffers a fracture as a result of osteoporosis, Crescent’s technology developed at the University of Limerick has significant commercial potential in helping to identify patients at risk of bone fracture earlier and reduce associated health-care costs.”

Donal Duffy, Head of Enterprise Ireland Relations, Bank of Ireland said: “The availability of funding to support companies like Crescent Diagnostics Ltd is a further endorsement of the high calibre of talent and entrepreneurs in the MedTech sector in Ireland. Bank of Ireland is delighted to support Crescent Diagnostics in developing and bringing a cutting edge product to the market through the MedTech Fund managed by Kernel Capital.”

Welcoming the announcement Greg Treston, Head of High Potential Start Ups at Enterprise Ireland, said: “Crescent Diagnostics Ltd is exactly the type of innovative and R&D committed company that Enterprise Ireland is looking to work with on their path to growth and internationalisation. This successful University of Limerick spinout shows how Enterprise Ireland’s higher education and commercialisation activities yield an important pipeline of new innovative start ups. This sort of commercially relevant technology - an exciting idea becoming a commercial reality - is exactly the outcome that we are keen to achieve.”

Ernest Poku, CEO, Crescent Diagnostics (Ireland) Limited added: “This investment by Kernel Capital is a significant endorsement of our technology. There is a massive unmet need for convenient, accurate and affordable testing. The BQT® test is a novel solution with the potential to enhance osteoporosis diagnosis. This funding will allow us to complete additional clinical trials and bring BQT® to market.”


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For further information please contact:
Orla Rimmington, Operations Director, Kernel Capital.
Tel: +353 21 4928974 / Fax: +353 21 4928977
Notes to Editors:
About Osteoporosis

• Osteoporosis is a thinning and weakening of the bones.
• Osteoporosis is characterised as the propensity for 'fragility fractures' of the hip, spine and wrist.
• Worldwide, an osteoporotic fracture is estimated to occur every 3 seconds, a vertebral fracture every 22 seconds.
• Osteoporosis is estimated to affect 200 million women worldwide - approximately one-tenth of women aged 60, one-fifth of women aged 70, two-fifths of women aged 80 and two-thirds of women aged 90.
• It is estimated that 300,000 people in Ireland have Osteoporosis.
• One in 5 men and 1 in 2 women over 50 will develop a fracture due to Osteoporosis in their lifetime.
• It is estimated that in Europe, 179,000 men and 611,000 women will suffer a hip fracture each year and that the cost of all osteoporotic fractures in Europe is provisionally €25 billion.
• The costs to the Irish healthcare system attributable to osteoporosis are enormous, for example the cost of treating a hip fracture is €12,600.
• What most people do not know is that osteoporosis can be prevented in most cases, and is a treatable disease in the majority of people.
• Early diagnosis is essential for the best results, although only a fraction of at-risk people in Ireland are currently being tested.

About Crescent Diagnostics (Ireland) Limited www.crescentds.com
Crescent Diagnostics is a diagnostics company which has developed a novel and convenient predictive test for early assessment of hip fracture. The company uses technology developed at the University of Limerick in Ireland, and is working to commercialise the BQT® technology in the US and Europe. The BQT® analyser uses Raman spectroscopy to examine the chemical bonds in the toenail. Crescent's research has shown that the structure and quantity of the chemical bonds in the human toenail is indicative of future hip fracture risk and is independent of bone mineral density (BMD), the standard test today. When BQT® test development is complete, a physician will be able to send a nail clipping to a laboratory for analysis, with results made available to the patient within a matter of days.

About Kernel Capital www.kernelcapital.ie Kernel Capital and its associate Life Science investment firm Seroba Kernel have in excess of €196m under management in six separate Venture Capital funds, investing in ICT, Life Science and general seed and early stage investments. These funds are supported by Enterprise Ireland, Bank of Ireland, University of Limerick Foundation, NUI, Galway and a range of other financial institutions. They have invested in Kernel Capital's portfolio of 51 companies which collectively employ in excess of 800 people and have been granted over 150 scientific patents. Kernel Capital and Seroba Kernel are committed to dynamic, innovative, knowledge based companies and led in excess of €96m in syndicated investment in 2010. Kernel Capital believe that it is an exceptional time for investment.

Bank of Ireland Seed and Early Stage Equity Fund
The Bank of Ireland Seed and Early Stage Equity Fund is a €32m Fund that invests in start-up and early stage companies, with a focus on export orientated high potential start-up companies that operate in the technology (including green technology), food and financial services sectors, in addition to supporting patent and patent pending projects within Irish universities. It is managed on behalf of Bank of Ireland and the other partners by Kernel Capital. This fund comprises of an investment by Bank of Ireland, Enterprise Ireland, University of Limerick Foundation and NUI Galway. The €10m Bank of Ireland MedTech Accelerator Fund is part of this Fund.

About Enterprise Ireland www.enterprise-ireland.com/en/
Enterprise Ireland, the Irish government agency responsible for the development and growth of Irish industry, is actively involved in supporting early stage high potential start-ups. With over 80 new direct equity investments annually in these businesses, and through its investment in 41 seed and venture capital funds, Enterprise Ireland is now the largest early stage VC investor in Europe in terms of the number of investments made. In addition, through its network of 31 international offices, Enterprise Ireland actively supports Irish companies to grow their export markets and create valuable jobs in Ireland.