NanoString draws $15.3M Series E for cancer Dx test launch
NanoString Technologies' decision to expand from scientific tools into diagnostics a few years ago attracted renewed endorsement from investors. The Seattle company raised $15.3 million in Series E financing from a number of sources both old and new. Executives plan to use the money to advance the commercial launch of its debut breast cancer assay, navigate the U.S. regulatory approval process for its test and further its overall pipeline.
Morgan Stanley Expansion Capital and AllianceBernstein Alternative Investment Management Group participated in the round--a preferred stock issuance. The company also drew new cash from existing investors such as BioMed Ventures, GE's ($GE) Healthymagination Fund, OVP Venture Partners, Draper Firsher Jurvetson, Clarus Ventures and former Genzyme CEO Henri Termeer (CEO Brad Gray is an ex-Genzyme executive himself.)
The company's new PAM50-based gene expression test for breast cancer is what drew the investor attention. Just this past September, the company gained a CE mark for the molecular diagnostic, and now the company is focused on bringing that test to market overseas. Additionally, the new funding will help NanoString navigate the U.S. regulatory process for the product.
Less than two years ago, NanoString began its diagnostics clinical development program. The company began its life as a scientific tool-maker. And though the company will face competition, its new funding reinforces the surging interest in all things diagnostics and the investor belief that the market continues to have plenty of room to grow.
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