Tracking down cancer — Katana Labs Software detects cancer cells using artificial intelligence

TGFS

8 November 2023

Time is money, as the saying goes. But time is far more valuable than money when a person’s health is at stake. This is particularly evident with cancer, which, according to the Federal Statistical Office, is the leading cause of death among individuals aged 40 to 79. Every single day is crucial for successful prevention and treatment of cancer: the earlier the diagnosis, the higher the chances of recovery. However, this is often hindered by overburdened laboratories, where tissue samples are still largely examined manually for cancer cells. Due to a shortage of skilled professionals, pathologists are struggling to keep up with the time-intensive analysis under the microscope. The Dresden-based start-up Katana Labs aims to overcome resolve this dilemma with cutting-edge technology “made in Saxony”: Research projects at the Carl Gustav Carus University Hospital in Dresden laid the foundation for the cloud-based PAIKON software. Equipped with artificial intelligence, it enables faster, more precise and more comprehensive analysis of tissue samples than humanly possible. To ensure the analysis software can be further developed, certified and applied in laboratories worldwide, TGFS Technologiegründerfonds Sachsen has already invested in Katana Labs during the pre-seed phase. Early support is also critical for success in start-up funding. The investment is being realized by MBG as a management partner in TGFS.

The founding team of Katana Labs — consisting of Dr. Falk Zakrzewski, Nicolaus Widera and Dr. Walter de Back — has been working together on digital pathology solutions at TU Dresden and the Carl Gustav Carus University Hospital Dresden for several years. In the During this time, they underwent a personal transformation from scientists to entrepreneurs. With the establishment of Katana Labs in May of this year, the founders are fully dedicated on the development and marketing of the PAIKON software. Co-founder Dr. Falk Zakrzewski explains why time is also a crucial factor here: “The market for AI-based cancer diagnostics is only just emerging. With our technology, we are among the pioneers and could establish a flagship project here in Saxony. The venture capital from TGFS greatly helps us advance product development and stay internationally competitive.” At the same time, he sees the TGFS investment as a “trust-building measure that makes us more attractive to other investors.” TGFS had been observing Katana Labs since 2021 before stepping in as the first institutional investor. The responsible Investment Manager Christian John explains: “The decisive factor for our investment was the team’s high level of expertise, both in the medical field and in artificial intelligence. With PAIKON, they are delivering a market-ready software solution that can elevates pathology to a new technological level and save many lives in the long term.” In addition to the TGFS, four business angels from Germany and abroad participated in the financing round — including renowned experts in the field.

The PAIKON software solution was developed in close cooperation with practicing pathologists to align with their real word working conditions. Like the entire medical sector, pathology is facing a decline in personnel figures. At the same time, the number of tissue samples requiring analysis is increasing globally due to a growing, aging world population and an improved health care system. Katana Labs’ automation solution promises the urgently needed boost in productivity. The tissue samples are first converted by special scanners into digital, high-resolution images of up to 150,000 x 150,000 pixels. PAIKON then scans these digital images for cancer and other biomarkers. Powered by artificial intelligence, trained on exemplary tissue samples, the system analyzes up to a million cell nuclei within minutes and put under the digital magnifying glass. The computer-generated analyses offer medical professionals a fast and reliable basis for making decisions, enabling them to provide the final diagnosis. Initially, Katana Labs focused on the molecular characterization of breast cancer, which is often diagnosed using the so-called HER2-FISH analysis method. Although this method is highly accurate, it is also extremely time- and cost-intensive, making PAIKON’s potential for savings particularly significant in this area. Simultaneously, Katana Labs is advancing the software further to map additional analysis methods and detect further types of cancer. Currently, the company is concentrating on diversifying the product to address the diagnosis of colorectal, prostate and lung cancer, which also have high case numbers.

In the past, the team at and around Katana Labs has successfully secured government funding for research on several occasions. However, the transition from research project to business case requires long-term prospects, as Dr. Falk Zakrzewski points out: “The research sector traditionally receives strong support, but too often, skilled professionals and the new technologies they develop end up leaving Saxony.” In this Context, the founder sees TGFS as a key factor for the region’s development. “TGFS acts as a bridge to further develop companies emerging from funded research projects, helping to retain them in Saxony and redirect funds back into the state. With TGFS capital, companies in Saxony can grow and invest in local talent.” Katana Labs has already grown to seven full-time employees in recent months. However, the newly acquired funds will also be used to advance the certification process for the PAIKON software. To meet the strict requirements for the approval of digital medical devices, Katana Labs is setting up a quality management system, technical documentation and internal risk management. The goal is to achieve CE-IVD certification for the breast cancer diagnosis software by 2024, enabling PAIKON to be distributed to pathology labs and clinics across the EU. Potential certification by the FDA should open access to the US clinical market. For pure research purposes, the software may also be used without certification. It is already commercially deployed by research-based pharmaceutical and MedTech companies. In this way, Katana Labs is already helping to develop new analysis methods and drugs for cancer — because every day counts.

TGFS deal team
Tobias Voigt and Christian John

The article was published by the MBG Sachsen — management partner in TGFS.
image source: Katana Labs GmbH