Deciphex Secures $32.3M Series C to Address Global Pathology Shortage

Rhea-AI Summary

Deciphex has secured $32.3 million in Series C funding led by Molten Ventures, with participation from multiple investors including Charles River Laboratories (NYSE: CRL). The funding aims to address the global pathology shortage, where over 70% of healthcare decisions require pathology investigation amid declining pathologist numbers.

The company's AI-powered platforms, Diagnexia and Patholytix, enable pathologists to work up to 40% faster while maintaining diagnostic accuracy. The funding will support global expansion across the US, UK, EU, Canada, and Japan, enhance platform capabilities, accelerate AI foundational model development, strengthen partnerships with industry leaders like Novartis and Charles River Laboratories, and expand services to pharmaceutical, biotech, and CRO clients.

Positive

• Secured $32.3M in Series C funding from prominent investors
• Technology enables pathologists to work 40% faster while maintaining accuracy
• Strategic partnerships with major industry players (Novartis, Charles River Labs)
• Expanding global market presence across multiple key regions
• Addressing growing market need with 70% of healthcare decisions requiring pathology

Negative

• None.

Insights

Investment Analyst

This $32.3M Series C investment in Deciphex represents a strategic move for Charles River Laboratories (CRL), signaling their commitment to digital pathology innovation. The participation reinforces CRL's position in the preclinical research space and expands their technological capabilities. The integration of Deciphex's AI-powered platforms could enhance CRL's operational efficiency by up to 40% in pathology workflows, potentially improving margins and service delivery. The strategic partnership for toxicology and preclinical safety evaluation aligns with CRL's core business model and could create new revenue streams. However, CRL's investment size appears relatively modest compared to their $9.7B market cap, suggesting immediate financial impact on the stock.

Healthcare Technology Analyst

The investment validates the growing importance of AI in pathology automation and highlights a critical market opportunity. With 70% of healthcare decisions requiring pathology investigation, Deciphex's platforms address a substantial market need. The technology's ability to increase pathologist productivity by 40% while maintaining diagnostic accuracy represents a significant value proposition. The expansion into key markets (US, UK, EU, Canada, Japan) and partnerships with industry leaders like Novartis and CRL indicate strong commercial potential. The development of pathology foundational models could create a sustainable competitive advantage through network effects and data accumulation, potentially yielding long-term returns for stakeholders.

DUBLIN--(BUSINESS WIRE)-- Deciphex, a leader in AI-powered digital pathology, has closed its Series C financing, raising $32.3 million to address the acute global pathology crisis. Led by Molten Ventures with significant participation from ACT Venture Capital, Seroba, Charles River Laboratories (NYSE: CRL), IRRUS Investments, HBAN Medtech Syndicate and Nextsteps Capital, the funding will advance Deciphex's mission to democratize access to high-quality pathology through a technology-enabled global network of pathologists.

With over 70% of healthcare decisions requiring pathology investigation and a widening gap between rising patient needs and declining pathologist numbers, healthcare systems face mounting backlogs globally. Deciphex's platforms, Diagnexia and Patholytix, address this crisis through AI-powered digital pathology that enables pathologists to work up to 40% faster while maintaining diagnostic accuracy. By expanding access to quality pathology services and reducing diagnostic delays, Deciphex is transforming patient care delivery worldwide.

This funding round considerably advances Deciphex's strategic priorities:

• Scaling Global Service Reach: Deciphex is expanding across the US, UK, EU, Canada, and Japan to meet the growing demand for digital pathology solutions. This global scale-up will enhance access to expert diagnostics and research services, addressing critical healthcare and pharmaceutical needs worldwide.
• Enhancing Utility of Diagnexia and Patholytix Platforms: Deciphex will enhance its core platforms: Diagnexia, a global digital pathology network that expands subspecialty expertise and reduces diagnostic backlogs, and Patholytix, a preclinical platform that accelerates drug development through AI-powered workflows. Together, these solutions drive efficiency and innovation in pathology services worldwide.
• Accelerating Pathology AI Foundational Model Development: Deciphex will leverage its extensive pathology image repository to develop pathology foundational models, improving both speed and accuracy for clinical and non-clinical applications.
• Strengthening Partnerships with Industry Leaders: Deciphex will strengthen its strategic partnerships with Novartis and Charles River Laboratories, advancing AI models for toxicology and preclinical safety evaluation.
• Expand Services to Pharma/ Biotech and CRO Clients: Deciphex will enhance its clinical research capabilities, enabling efficient clinical trials, biomarker discovery and validation, and unlocking insights from clinical archives to drive innovation.

Donal O'Shea, Founder and CEO of Deciphex, described the importance of this investment: "This investment accelerates our mission to transform global pathology access. Our ergonomic, AI-enabled platform enhances diagnostic workflow and accuracy - allowing experts to clear backlogs faster without compromising quality. By expanding this technology worldwide, we're not just improving healthcare efficiency, we're supporting both the pathologists who drive diagnoses and the patients who depend on them."

Inga Deakin, Principal at Molten Ventures, the lead investor, added: "Deciphex is tackling one of healthcare’s most pressing issues. By supporting pathologists with AI tools that enhance efficiency without sacrificing accuracy, Deciphex offers a much-needed solution to the diagnostic burden facing pathologists around the world. We’re thrilled to support Deciphex in bringing these critical diagnostic services to those who need it most."

About Deciphex: Founded in 2017, Deciphex aims to transform diagnostic workflows through AI-powered digital pathology to improve patient outcomes worldwide. Its two flagship platforms target distinct markets: Diagnexia connects global subspecialty pathologists for rapid diagnostics and backlog reduction, while Patholytix accelerates drug development through optimized preclinical safety assessments. By automating routine tasks, these platforms enable pathologists to focus on complex cases while delivering faster, more reliable diagnoses. Through this combination of AI innovation and clinical expertise, Deciphex is advancing both healthcare delivery and therapeutic development.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250107640283/en/

Media

Andrew Korda

Account Director, Media & PR

LaVoieHealthScience

Email: akorda@lavoiehealthscience.com

Phone: (617) 865-0043



Corporate

Katie Higgins

Commercial Marketing Director

Email: katie.higgins@deciphex.com

Phone: +353 1 221 0842

Source: Deciphex

FAQ

How much did Deciphex raise in their Series C funding round with CRL as investor?

Deciphex raised $32.3 million in their Series C funding round, with Charles River Laboratories (CRL) participating as one of the investors.

What efficiency improvement does Deciphex's AI technology provide to pathologists?

Deciphex's AI-powered digital pathology platforms enable pathologists to work up to 40% faster while maintaining diagnostic accuracy.

Which regions is Deciphex expanding to with the new funding?

Deciphex is expanding across the US, UK, EU, Canada, and Japan to meet the growing demand for digital pathology solutions.

What percentage of healthcare decisions require pathology investigation according to Deciphex?

According to Deciphex, over 70% of healthcare decisions require pathology investigation.

What are the main platforms offered by Deciphex?

Deciphex offers two main platforms: Diagnexia, a global digital pathology network, and Patholytix, a preclinical platform for drug development.