Cavidi gears up for market growth thanks to new investment partner

Uppsala-based life science company Cavidi is an expert in HIV monitoring. Its first commercial product was a manual test for HIV monitoring in resource-limited settings, ExaVir Load. This product was an important step in taking care closer to the HIV-infected population in the parts of the world that are most affected, primarily by taking the lab process closer to the millions of people who live with HIV. Based on the market created by its first test, Cavidi is now ready to expand its product range. 

The next product generation, Ziva, has been developed to meet the needs of district hospitals. Ziva will provide a fully-automated, viral-load monitoring system purpose-built to meet the requirements of decentralised labs. In making routine viral-load testing accessible to millions of people around the globe, the company sees Ziva as a true game-changer. 

Familiar dilemma for many start-ups
Like many life science start-ups, Cavidi has faced the reality of while its first product builds a market that in turn creates new opportunities, it lacks sufficient revenue to cover the costs of new product development and market introduction. This is a particularly tough problem in life science, where quality requirements and regulatory demands mean that product development life cycles are long. This dilemma has accentuated the need to find a strong, long-term investor who understands the life science market and its opportunities. To support local companies in a similar situation, Uppsala BIO identified a handful of Scandinavian investors who were invited to meet with Uppsala-based companies. The meeting was educational and informative; many interesting discussions took place and new networks were created.

Impilo investment opens up large market for new product introduction
One outcome of the meeting is the partnership between Cavidi and its new investor Impilo. With Impilo as a major owner, Cavidi can now introduce Ziva to a large market and create the platform for further product development. “Life science companies need support in the early stages of their development due to the high levels of investment needed. But as life science will be a growth industry as well as a major source of employment during this century, this sort of support will pay dividends”, says John Reisky de Dubnic , CEO at Cavidi.

Impilo AB, established in 2017, is an investment company focusing exclusively on Nordic healthcare businesses, with approximately SEK 3.6 billion in capital from leading Nordic and international investors. The company applies a long-term approach to building value and aims to produce lasting positive effects in the healthcare sector. Cavidi’s focus on delivering technology that enables healthcare systems to implement WHO guidelines on how to better monitor HIV thus fits in well with Impilo’s investment philosophy.

Cavidi is now on the verge of launching Ziva across Africa with other markets set to follow soon afterwards. New distribution agreements are in the pipeline for additional markets outside Africa. This will lead to a build-up of operations in Uppsala to support the rollout of Ziva worldwide, creating new employment opportunities. Cavidi will continue to develop new products to create the next wave of growth and expansion.

Medium-sized businesses vital to Uppsala’s well-being
Cavidi is one in a long line of successful Uppsala start-ups, where medium-sized companies constitute an important group of the city’s life science industry: they are the fastest-growing segment, they have created a market for their products, and they have a real potential to expand. If we can continue to secure the lab and production facilities they need, as well as the skills they require, we can look forward to continued strong industrial growth in the region.