Report: Cancer Testing Companies Drawing Investor Interest and Financing Deals

News provided by

Oct 01, 2015, 10:13 ET

NEW YORK, Oct. 1, 2015 /PRNewswire/ --The rapidly growing field of cancer diagnostics has attracted significant investments and financings in recent years, according to Kalorama Information. The healthcare market research firm said that 100 investments related to cancer testing have been made since December 2013. These include public stock sales, equity financing from companies and venture capital investments. Nor has the pace of financing arrangements slowed. Over $80 million was raised by cancer diagnostics company in July and August of this year alone, according to the firm's report The World Market for Cancer Diagnostics.

"The interest is not surprising given the twenty billion-dollar plus market opportunity when kits and services are considered," said Bruce Carlson, Publisher of Kalorama Information. "And the track record of revenue growth for testing products in cancer at double the average for most test products. It can be said to reflect confidence that there are effective methods of early detection and targeted therapy deserving support."

Organizations and individuals investing in cancer diagnostic companies represent a wide range of types of investors. Private investors include venture capital funds, institutional investors, equity groups, companies, and wealthy individuals. The market leader in next-generation sequencing, Illumina, has also made some investments. In addition, the venture arms of selected pharmaceutical companies have invested in next-generation sequencing companies. Several companies have been able to complete initial public offerings (IPOs) or make secondary offerings, while others have completed debt financings.

In August, GeneNews announced that the company had raised $1.26 million in a non-brokered private placement. GeneNews reported that it had accepted subscriptions for a non-brokered private placement offering of 3,956,249 units ("Units") at a price of $0.32 per Unit for aggregate gross proceeds to the Company of $1,265,996.48 CAD. Each Unit is comprised of one common share ("Common Share") and one warrant ("Warrant"). Each Warrant is exercisable until September 15, 2017 and entitles the holder to purchase one Common Share at an exercise price of $0.50, subject to customary adjustment provisions.
In August, Provista Diagnostics announced the closing of $6.0 Million of Series A-2 Preferred financing from existing investors exercising warrants from a previous financing round.
In August, Illumina announced that announced Illumina Accelerator had selected three new startups for its second funding. One of these startups was Urology Diagnostics, a genomics company developing noninvasive urine sequencing diagnostics for screening and monitoring cancer. The company will be able to access to match funding through the $40 million Illumina Accelerator Boost Capital, and Illumina's sequencing systems and reagents, as well as fully operational lab space in the San Francisco Bay Area during the six-month funding cycle.
BioTime and OncoCyte announced that OncoCyte had received a new round of financing. The press release reported that the financing included a cash investment of $3.3 million and conversion of $3.3 million of existing debt into equity.
Castle Biosciences announced that it had closed the first tranche of a $20 million Series F financing, raising $11.7 million. The round was led by Industry Ventures, with current investors including HealthQuest Capital and Mountain Group Partners participating. Castle Biosciences also reported that it anticipated completing the Series F round by the end of the third quarter.
TrovaGene announced the closing of a previously announced underwritten public offering, in which the company sold 4,600,000 shares of its common stock in the offering, which includes 600,000 shares that were issued upon the full exercise by the underwriters of their over-allotment option. The offering price was $8.75 per share and gross proceeds to Trovagene were approximately $40.3 million.
ACD announced that the company had raised $22 million in Series C equity financing, led by growth equity investor Summit Partners with participation from Kenson Ventures and existing investors, Morningside Ventures and New Leaf Venture Partners.
Cellmid announced that the company had raised $2.8 million, by accepting subscriptions for new fully paid ordinary shares in the Company.

In addition, Kalorama says that Biocept, Provista, Lifecode, Guardant Health, Biodesix, DiaCara, ACT Genomics are among the companies with 2015 financing announcements.bio The firm sees the trend of these type of arrangements continuing. Kalorama's report, The World Market for Cancer Diagnostics, lists all significant financing events in cancer testing going back to 2006. The report also provides substantial coverage of companies participating in the market, profiling over 200 competitors. Market size estimates for every segment of cancer testing are also provided. The report is available at http://www.kaloramainformation.com/redirect.asp?progid=87868&productid=9292184.

About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama's website and are also available on www.marketresearch.com and www.profound.com.

We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog at www.kaloramainformation.com.

Contact:
Bruce Carlson
(212) 807-2622
[email protected]
www.KaloramaInformation.com

Logo - http://photos.prnewswire.com/prnh/20150831/262422LOGO

SOURCE Kalorama Information