Gut health business Microba Life Sciences Ltd (ASX:MAP) has secured a A$17.8 million investment from diagnostics giant Sonic Healthcare with assistance from Thomson Geer.

Sonic has acquired a 19.99 per cent stake in Microba through its subscription for shares and is seeking to acquire options for another five per cent stake, which would inject a further A$7.5 million if the option issue is approved by shareholders.

Funds from the investment will be used to advance Microba’s key therapeutic programs and support the international expansion and scaling of its testing services.

Microba and Sonic also entered into initial terms of an agreement enabling Sonic to distribute Microba’s microbiome testing products to customers in Australia, New Zealand, the US, UK, Germany and Belgium.

Thomson Geer advised on the share placement and the proposed issue of options, as well as the terms sheet for the proposed licence and distribution arrangements with Sonic.

Thomson Geer Partner Emma Cook said: “We’re excited to be able to advise Microba on this important investment by global healthcare provider Sonic. It demonstrates there is significant interest in the opportunities Microba can provide in human health.”

Microba’s world-leading technology that measures the human gut microbiome was developed at the University of Queensland by founders Professor Philip Hugenholtz and Professor Gene Tyson. It is tapping into a growing body of research demonstrating that the gut microbiome plays a central role in health and disease.

The Microba board includes Professor Ian Frazer, the co-inventor of the technology that led to Gardasil, the leading vaccine to prevent cervical cancer.

Microba Chief Executive Dr Luke Reid said in a statement: “This strategic partnership with Sonic is set to accelerate international distribution of Microba’s microbiome testing into primary and specialist healthcare, and move our testing deeper into routine patient management.”

Thomson Geer also assisted Microba on its A$30 million initial public offering and listing on the ASX in April 2022.

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