GenMark Diagnostics seeks $42M in public offering
GenMark Diagnostics ($GNMK) wants to raise at least $42 million in the company's public offering that's set for this week. Plans call for using the proceeds to expand test offering menu options and accelerate other product development. But the big focus here with the cash infusion will be to grow U.S. and global commercial operations.
GenMark's 2012 first quarter revenue reached $2.2 million, compared to just $758,000 over the same period a year ago. Executives credited the numbers boom (and a tiny profit for the quarter) to large increases in volume sales and "manufacturing efficiencies" already. CEO Hany Massarany has said that boosting the company's testing menu and also expanding test use with existing customers should lead to more than $15 million in revenue for 2012.
Among products in the company's pipeline: HCV genotyping tests, and a test designed to help identify various flu virus strains. Currently, the company also markets a diagnostics testing system, plus a genotyping test for cystic fibrosis, a thrombophilia risk test and a diagnostic to see how sensitive a patient would be to taking warfarin, a drug that helps prevent blood clots, but can product a number of side effects.
The Carlsbad, CA company will price its underwritten public offering of 10 million shares at $4.20 each, with plans to close the offering on June 26. GenMark is selling all of the shares itself. Offering underwriters will have a month to buy an additional 1.5 million more shares to cover any over-allotments.
- read the release
GenMark IPO price range lowered