Octave Bioscience has successfully closed a $35.6 million Series C equity financing round and entered into a $15.5 million non-dilutive term loan agreement with Silicon Valley Bank, positioning the commercial-stage precision care company to accelerate the adoption of its groundbreaking multiple sclerosis testing platform.
The financing announcement comes as Octave demonstrates strong commercial momentum for its flagship Octave MSDA test, described as a first-of-its-kind test for MS disease activity. The company has achieved broad physician adoption with over 325 prescribers and has delivered more than 19,000 patient tests to date. Notably, the test has secured in-network reimbursement with over 75 million contracted lives at favorable rates, indicating strong payer acceptance of the precision medicine approach.
Commercial Expansion and Strategic Focus
The proceeds from the financing will primarily support continued commercialization of the Octave MSDA test while advancing the company's pipeline development in Parkinson's disease. Doug Biehn, Chief Executive Officer of Octave, emphasized the strategic importance of the funding: "This Series C funding empowers us to establish the Octave MSDA Test as the new standard of care in multiple sclerosis. Beyond MS, these resources significantly advance Octave's mission to become the leading precision neurology platform in the world, ultimately impacting the lives of individuals with neurodegenerative diseases like Parkinson's and Alzheimer's."
Investor Participation and Platform Recognition
The equity round attracted participation from both new strategic investors and existing stakeholders, including Byers Capital, Blue Venture Fund, Northpond Ventures, S32, Casdin Capital, Merck Global Health Innovation Fund, Novartis, Valhalla Foundation, Intermountain Ventures, and Hikma Ventures. The diverse investor base reflects confidence in Octave's precision medicine approach to neurodegenerative diseases.
Brook Byers of Byers Capital highlighted the clinical value proposition: "Octave Bioscience's precision medicine testing platform is driving personalized insights for neurodegenerative diseases and changing how they are managed. The company's multi-analyte blood-based tests provide quantitative and clinically actionable insights, enabling physicians to make more confident, impactful treatment decisions that can lead to improved patient outcomes."
Technology Platform and Pipeline Development
Octave's comprehensive testing solutions utilize biomarker-driven approaches to provide objective, actionable insights for disease monitoring and treatment decisions. The company's multi-analyte blood-based tests represent a significant advancement in precision neurology, offering quantitative data to support clinical decision-making in neurodegenerative diseases.
Beyond multiple sclerosis, Octave is advancing its pipeline in Parkinson's disease through a strategic partnership with the Michael J. Fox Foundation. This collaboration positions the company to extend its precision medicine platform to additional neurodegenerative conditions, including future applications in Alzheimer's disease.
The successful financing round and strong commercial metrics demonstrate growing market acceptance of precision medicine approaches in neurology, particularly for complex neurodegenerative diseases where traditional diagnostic and monitoring approaches have limitations. With over $51 million in total funding now secured, Octave is well-positioned to establish its testing platform as a new standard of care in multiple sclerosis while expanding into additional therapeutic areas.
