A Morrisville biotech startup has raised $35 million as it prepares to commercialize systems aimed at improving animal health in the commercial poultry industry.
The company, Targan, which previous operated under the name Applied LifeSciences & Systems, is developing a system that uses high-speed imaging, artificial intelligence, robotics and microfluidics to individually vaccinate up to 100,000 chicks per hour. The company has also developed a fully automated system that can determine the gender of individual chicks.
The systems are intended to help producers by protecting birds from harmful diseases and reducing the reliance on chemicals and antibiotics, said founder and CEO Ramin Karimpour.
"We are changing animal health care from herd or flock, into individualized health care," Karimpour said.
Mountain Group Partners and Raleigh-based NovaQuest Capital Management led the Series C financing round, which included participation from existing investors Merck Animal Health and Oval ParK Capital, another Raleigh-based firm.
“Merck Animal Health has supported Targan from the beginning of their journey," said Stephen Murray, Lead, Merck Animal Health Ventures. "It is rewarding to see the team continue to grow and develop their groundbreaking technology for poultry customers around the world."
This follows the company raising $8 million in a Series A round in 2019 and $7 million in a Series B round in 2021. The company has also been backed over the years by the National Science Foundation, the Foundation for Food & Agriculture Research and grant programs through the state of North Carolina.
In addition to its raise last year, the company changed its name from Applied LifeSciences & Systems to Targan, which communicates the company's aim of targeting the health of animals, Karimpour said.
This new capital will support the company, which was founded in 2015, as it moves into commercializing its vaccination and gender identification systems. This includes supporting ambitious hiring plans. The company of 58 employees currently expects to reach 100 by the end of this year and 160 by the end of 2023, Karimpour said.
To accommodate the growth, Targan is moving into a 100,000-square-foot facility, which is about five times the size of the company's existing space. This will serve as the company's headquarters as it focuses on U.S. production.
By headquartering in North Carolina, Targan remains in one of the top states in the U.S. for commercial poultry production. In 2020, North Carolina was the top poultry production state in the U.S., with all poultry and egg cash receipts totaling about $4.2 billion, according to data from the U.S. Department of Agriculture.
The company is in the process of beginning system trials with top U.S. producers in June and expects to have its first commercial machines in the market in 2023. The systems are somewhere around 25 feet long, 8 to 10 feet tall and 8 to 10 feet wide, although they will be tailored for each producer's operation. Some companies will require multiple machines, Karimpour said.
While Targan is currently focused on its U.S. operations, Karimpour said the the company has been approached by poultry producers in other countries as well. Companies in Brazil, Canada, Europe and the Asia-Pacific have expressed interested in Targan's systems. By 2024, the company could have a footprint established outside of the U.S.
In addition to possible geographic expansion, Targan plans to eventually move into other commercial animal protein production industries.
In addition to poultry, the company has plans to adapt its systems to work in swine and aquaculture production, Karimpour said. Targan could begin advancing its efforts on swine next year and aquaculture in 2024, with commercialization in those spaces taking place in 2026 or 2027.
