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NIAID Grants Zepto $8.9 Million to Scale Liquid Biopsy Diagnostics

The National Institute of Allergy and Infectious Diseases has awarded Zepto Life Technology an $8.9 million contract to accelerate the development of its liquid biopsy platform. The funding aims to transition the FungiFlex system from a centralized reference lab model to a deployable diagnostic tool for hospital microbiology units.

NIAID Grants Zepto $8.9 Million to Scale Liquid Biopsy Diagnostics
Photo: Bio & News

Invasive fungal infections present a significant challenge for immunocompromised patients, where diagnostic delays often lead to poor outcomes. Zepto’s MDx platform addresses this by identifying pathogen-derived cell-free DNA directly from plasma, bypassing the need for invasive tissue collection or slow culture-based methods. While the FungiFlex Mold Panel currently operates through the company’s CLIA-certified laboratory, this federal infusion supports the engineering and manufacturing necessary to place the technology directly into clinical settings.

The contract, issued under project number 75N93026C00010, begins with an initial $1.9 million disbursement. Subsequent funding is contingent upon meeting specific development milestones, ultimately reaching the $8.9 million total if all options are exercised. CEO Hannah Zhang noted that this transition is critical for providing clinicians with actionable data closer to the initial point of care. The project is fully financed by federal funds from the Department of Health and Human Services.

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