Lineagen Announces $19.8 Million Fundraising with Closing of $15.8 Million Series C Roundposted - FEB 18, 2015
Funds to Support Continued Adoption of FirstStepDx PLUS and NextStepDx PLUS Tests for Pediatric Development Disorders
SALT LAKE CITY, Feb. 18, 2015 /PRNewswire/ -- Lineagen, Inc., an innovative molecular diagnostics company focused on disorders of childhood development, announced today the closing of the second and final tranche of its $15.8 million Series C round of financing. The final tranche of $12.17 million in new equity capital was led by new institutional investor HealthQuest Capital, joined by additional new investors Petra Capital Partners and Mountain Group Partners. Additional participants in the overall Series C round include Lineagen's earlier investors Sanderling Ventures, Signal Peak Ventures, PrairieGold Venture Partners, Mesa Verde Venture Partners, Archipel Capital, University Venture Fund, and KickStart Ventures. Additionally, as part of the initial tranche, Lineagen received a $4 million secured debt facility with Silicon Valley Bank.
"Lineagen's comprehensive suite of patient, family and physician support services, along with leading diagnostic technology, attracted HealthQuest Capital to lead this investment which will enable the Company to serve more physicians and families in achieving early diagnosis of autism and related disorders," commented David S. Kabakoff, Ph.D., partner of HeathQuest Capital. Dr. Kabakoff and David Fitzgerald of Petra Capital have joined the Lineagen Board of Directors in conjunction with the financing.
"We are exceptionally pleased to welcome HealthQuest Capital, Petra Capital Partners and Mountain Group Partners to Lineagen, and honored to expand our financial relationship with our longstanding investors and Silicon Valley Bank, with whom we have had a relationship since our Series A round of funding," commented Michael S. Paul, Ph.D., Lineagen's Chief Executive Officer. "The additional funding will support the continued commercial adoption of our FirstStepDx PLUS test, help expand commercialization of NextStepDx PLUS, and enable us to apply our clinical research to a broader range of neurodevelopmental and neurological indications."
Dr. Paul continued, "Peer-reviewed publications and clinical results from more than 2,500 patients show that our FirstStepDx PLUS test provides the highest clinical detection rate of all chromosomal microarrays currently marketed for gene variants linked to Autism Spectrum Disorder and other disorders of childhood development, and we are excited by the growing response within the market. From 2013 to 2014, we experienced more than a 250% increase in tests ordered by over 350 pediatricians across the country. We are grateful to the communities we serve and to our investors who have continued to support our programs which improve the lives of pediatric patients and their families."
About FirstStepDx PLUS and NextStepDx PLUS
Lineagen's FirstStepDx PLUS, and related patient support services including M-Chat (www.mchat.org), OpeningAutism and SmartPath, assist physicians, patients, and families in navigating the diagnostic "odyssey" of individuals with ASD, developmental delay, intellectual disability, and multiple congenital anomalies, leading to improved clinical management. Chromosomal microarray (CMA) genetic testing is medically recommended as first-line for children with ASD so that a potential genetic cause in these children can be identified earlier and more efficiently. The FirstStepDx PLUS test includes fully integrated genetic counseling, the most advanced, customized CMA clinically available, a detailed, personalized report created specifically for each individual tested, and reimbursement assistance.
Lineagen's FirstStepDx PLUS and NextStepDx PLUS genetic tests incorporate novel validated copy number and single nucleotide genetic variants that were featured in a 9,000-person genetic study by researchers affiliated with The Children's Hospital of Philadelphia (CHOP), the University of Utah, Golden Helix, Inc, and Lineagen (http://dx.plos.org/10.1371/journal.pone.0052239 and http://www.molecularautism.com/content/5/1/5).
The FirstStepDx PLUS genetic test was the first such test to be performed on a fast and painless cheek swab (FirstStepDx PLUS Buccal), eliminating the need for a blood draw. For more information about FirstStepDx PLUS, please call Lineagen at 888-888-OPEN (888-888-6736) or visit www.firststepdxplus.com.
Based in Salt Lake City, Utah, Lineagen's mission is to accelerate and enhance the diagnostic evaluation of medical conditions so that the best possible outcomes can be achieved for patients and their families. Our first commercial offerings, FirstStepDx PLUS and NextStepDx PLUS, provide physicians with a fully integrated genetic testing, counseling, and developmental screening service to aid in the diagnostic evaluation of individuals with ASD or other forms of developmental delay. In addition to our deep commitment to ASD and developmental delay, we have ongoing scientific programs in the areas of multiple sclerosis (MS) and chronic obstructive pulmonary disease (COPD).
For additional information, please visit www.lineagen.com.
About HeathQuest Capital
HealthQuest Capital makes go-to-market and early growth investments in innovative healthcare companies that are improving both patient outcomes and healthcare economics. Investments focus on the medical device, diagnostics, patient care products, consumer health/OTC and healthcare IT fields. The HealthQuest investing team includes deep operational, clinical and scientific expertise and worldwide relationships throughout the healthcare industry that can be leveraged to add value to portfolio companies. HealthQuest is part of the Sofinnova Ventures network, which has been making venture investments worldwide for over 40 years, backing some of the most exciting and successful innovators in healthcare. HealthQuest Capital is headquartered in Menlo Park, CA with offices in Southern CA, Florida, and Georgia.
Dr. Michael Paul