MLSC Doles Out More Loans to Massachusetts Companies

The Massachusetts Life Sciences Center (MLSC), a state-funded organization, has awarded two loans of $1 million each to Cytrellis Biosystems Inc. and Lumicell Diagnostics Inc. To date, MLSC has invested $15.2 million in 24 early-stage life sciences-focused companies.

“Entrepreneurship is essential to the strength of our innovation economy, and the Life Sciences Center’s accelerator program is playing a crucial role in helping early-stage life sciences companies,” said Massachusetts Gov. Deval Patrick. “We look forward to working with these companies as they put down roots and grow in Massachusetts, supporting the future of innovation right here.”

The Accelerator Loan Program, the MLSC’s flagship investment program for companies, supports and “de-risks” early-stage companies by providing loans that will match other sources of capital. By leveraging other sources of capital, the accelerator program provides support to companies at the most critical stages of their development cycle, enabling them to conduct vital research and proof-of-concept studies and to attract subsequent investment while improving the odds of bringing cutting edge innovation to the marketplace. The maximum amount any company can receive is $1 million. According to the MLSC, six companies it has invested in have paid back their accelerator loans early with interest after generating more than $105 million in equity or acquisition proceeds.

Cytrellis Biosystems, based in Boston, is an emerging medical device company developing new products for dermatology, scar reduction and aesthetic medicine. An experienced team currently is focusing on initiating market concept activities, accelerating product development to yield prototypes for human evaluation, and initiating the commercial design.

Waltham-based Lumicell Diagnostics is a medical device company developing an intraoperative cancer detection system. This system includes a cancer-specific injectable imaging agent and a new hand-held imager to provide specificity and sensitivity during cancer removal surgery. Leveraging technology from the Massachusetts Institute of Technology (Cambridge) and Duke University Medical Center (Durham, N.C.), the clinical goal is to better detect tumor margins and reduce the need for repeat surgeries.

The MLSC is a quasi-public agency of the Commonwealth of Massachusetts, tasked with implementing the Massachusetts Life Sciences Act—a 10-year, $1-billion initiative that was signed into law in June 2008. The MLSC helps create life sciences jobs and support vital scientific research that improves the human condition. It makes financial investments in public and private institutions that are advancing life sciences research, development and commercialization as well as building ties among sectors of the Massachusetts life sciences community. The organization is based in Waltham, Mass.