molecular diagnostics –wall street perspective diagnostic companies –a growing industry public...
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Molecular Diagnostics – Wall Street Perspective
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Molecular Diagnostics – Wall Street Perspective
Charles Duncan, Ph.D.Managing Director, Senior Biotechnology Analyst
JMP Securities LLC
JMP Securities LLC
� 47 investment bankers focused on:
� Conflict-free advice
� Long-term relationships
� Since 2001:
� 308 securities offerings for $37.0 billion
� 110 completed strategic advisory assignmentsfor $9.0 billion
� Publicly traded company (NYSE: JMP) with 225 professionals located in San Francisco, New York, Boston and Chicago
� Services provided: capital raising and M&A advisory, equity research, and institutional brokerage and asset management
� Client focus: public and private growth companies and their institutional investor base
Investment BankingFirm Highlights
A Diversified, Stable Platform
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their institutional investor base
Equity Research
� 24 publishing research analysts
� 300+ stocks under coverage
� Research universe with medianmarket cap of $1.1 billion
� Proprietary investment themes
� Anticipation of change
� Action-oriented reports
Sales & Trading
� 24 salespeople
� 22 traders
� 550+ institutional relationships
� Active in 700+ stocks
� Corporate and venture services
Asset Management
� Harvest Capital Strategies
� $1.1 billion in assets under management
� Seven distinct hedge fund strategies
JMP Securities - Charles C. Duncan, Ph.D.
� Charles Duncan is a Managing Director and senior research analyst covering
the biotechnology industry.
� Prior to joining JMP, Charles served as Director of U.S. Equity Research and as
a biotechnology analyst at Dresdner Kleinwort Wasserstein Securities since July
2001. Charles previously spent a year at Prudential Vector Healthcare Group
and its predecessor, Vector Securities International, as a Senior Vice President
following biotechnology and genomics. Charles began his equity research career
at Tucker Anthony Cleary Gull, where he covered drug development and
therapeutics from March 1997 through May 2000.
� Coverage Universe:
� ACADIA Pharmaceuticals (ACAD)
� Allos Therapeutics (ALTH)
� Alexza Pharmaceuticals (ALXA)
� BioCryst Pharmaceuticals (BCRX)
� Cadence Pharmaceuticals (CADX)
� Celgene Corp. (CELG)
� Cephalon (CEPH)
� Corcept Therapeutics (CORT)
� Celera Corp (CRA)
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� Charles is a member of the Association for Investment Management Research,
the Denver Society of Security Analysts, was #2 stockpicker for Worldwide
Biotechnology in the 2007 Financial Times analyst ranking, has numerous
Starmine Star Analyst achievements for different covered stocks, and is quoted
broadly in the financial press.
� Charles holds a PhD in pharmaceutical sciences from the University of Colorado
and a BS in zoology/molecular biology from the University of Wisconsin,
Madison. Additionally, Charles carriers Series 7, 24, 63, 86, & 86 licenses, and
has passed the CFA level 1 exam.
� Celera Corp (CRA)
� Cytokinetics (CYTK)
� Genomic Health (GHDX)
� Myriad Genetics (MYGN)
� Oncothyreon (ONTY)
� Orexigen Therapeutics (OREX)
� Osiris Therapeutics (OSIR)
� PDL Biopharma (PDLI)
� Rockwell Medical Technologies (RMTI)
� Sangamo BioSciences (SGMO)
� ZIOPARM Oncology (ZIOP)
JMP’s Biotech and MDx Franchise - IPOs
JMP’s Healthcare Group has been Supporting High Quality IPOs since 2004
Selected IPO ClientsSelected IPO Clients� JMP’s healthcare group is an active underwriter of life sciences IPOs with
13 completed transactions representing nearly $700 million in gross
proceeds
� Currently working on two biotech IPOs targeting 1H:10 pricings
� We specialize in building long-term relationships with high quality
companies and sound financial backers
� As a result, most of the companies we have helped bring to the market
have performed well and we continue to work with them on a regular basis
2007
� Acquired for $720 million
� $550 million market cap
� $300 million market cap� Positive Phase III data
2010
� Phase III trial to be initiated in 2010
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JMP’s Approach to Life Sciences IPOsJMP’s Approach to Life Sciences IPOs
� We have built JMP’s healthcare group by providing clients with high quality
advice from senior professionals in each division of the firm: banking,
research, capital markets, sales and trading
� JMP has a track record of remaining committed to the life sciences
companies we take public, through positive and negative news
� Our standard advice to potential IPO clients:
� Process begins 1 – 2 years before the IPO: meet with institutional accounts early and
often so that they more easily reach a ‘yes’ decision when the time comes to invest
� Make the IPO a strategic decision, not a financial one: pad your balance sheet prior to
hitting the road to improve pricing leverage and safeguard against market uncertainties
2006
2005
2004
� $375 million market cap� Positive Phase III data
� $450 million market cap� Awaiting FDA approval
� NDA filed
� Acquired by Eli Lilly
� $400 million market cap
� $500 million market cap
� $395 million collaboration with Biovail
JMP’s Biotech and MDx Franchise – M&A
� Top 5 sell-side biotech/pharma M&A advisor in
2008 – 2009
� Senior level leadership and attention on every
deal throughout every stage in the deal
� Deal teams comprised of healthcare industry
M&A bankers – not generalists
� Ongoing proactive dialogue with the relevant
strategic buyers
� Experienced supporting team
JMP is a Leading Life Sciences M&A Advisor
June 2009
Sale to
Recent TransactionsRecent Transactions
October 2009
Merger with
September 2008
Sale to
November 2007
Sale to
December 2009
Merger with
January 2010
Merger with
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� Experienced supporting team
2008 - 2009 Sell-Side Biotech/Pharma M&A Activity Transaction Values between $20M - $1B
2008 - 2009 Sell-Side Biotech/Pharma M&A Activity Transaction Values between $20M - $1B
Source: SDC PlatinumNote: Transaction timing determined by announcement date; analysis may include transactions announced, but not yet closed* JMP Transactions include: IDM/Takeda, Mirus/Roche, Neuromed/CombinatorX, Intradigm/Silence Therapeutics
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3
4
4
4
5
Leerink Swann
Morgan Stanley
Lazard
Cowen & Co.
JMP Securities*
JPMorgan
Advisor Transactions
JP Morgan 5
JMP Securities* 4
Cowen & Co. 4
Lazard 4
Morgan Stanley 3
Leerink Swann 3
Top Biotech/Pharma Financial Advisors in 2008 - 2009
JMP’s Biotech and MDx Franchise – MDx
Research Coverage� Myriad Genetics – longest extent coverage on the street
� Genomic Health
� Celera Corp.
� Monogram Biosciences (acquired June 2009)
� Sequenom (dropped coverage October 2009)
IPOs/Follow-on transactions� Genomic Health
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� Genomic Health
� Myriad Genetics
MDx Revolution driving the Future of Medicine
Molecular Technology� Allows higher sensitivity and specificity
� Analyzes fundamental regulatory molecules: DNA/RNA
Molecular Diagnostics Create Advantages� Prevention: Risk and earlier disease detection
� Profiling: Better interpretation of symptoms
� Personalized Healthcare: Efficient use of therapies
� Predisposition, Prognosis, and Personalization
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� Predisposition, Prognosis, and Personalization
Trends in Personalized Medicine - 2010
Political - Effectiveness to Cost Effectiveness� WW acceptance: Money spent on healthcare is finite
� Increased emphasis on health technology assessment (HTA)Aim: Increase cost effectiveness of treatments
� Pharmaceutical companies are respondingTrend: Development of companion diagnostics (CDx)to increase cost effectiveness of drugs
Scientific - Therapies to Targeted Therapies� Advancement in understanding of disease processes lead to
target drugs, more closely to specific molecular targets
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target drugs, more closely to specific molecular targets
� Increasing demand for diagnostic tools to identify patientswith specific disease sub-types, likely to respond to the therapy
Regulatory - Passive to Active Regulation� Regulatory Authorities realized benefits CDx can bring to patients
� Both EMEA and the FDA encouraging pharmaceutical companiesto explore the use of CDx during drug development
� Dx-Rx combination will become an obligate element ofNDA/BLA submission and product labeling
Molecular Diagnostic Companies – A Growing Industry
Public Companies� ARCA, Celera, Clarient, deCODE, Diagnocure, Gen-Probe, Genzyme, Genomic Health,
Genoptix, Interleukin Genetics, LabCorp, Luminex, Myriad, Novartis MDx, PGx Health (CLDA), Qiagen, Response Genetics, Roche, Rosetta
Private Companies� Agendia, Almac, Artemis Health, AssureRx, Aureon, Axial Bio, BG Medicine, Biodesix,
BioMerieux, CardioDx, Crescendo, Diadexus, Endocyte, GeneDx, Glycominds, HistoRx, HX Diagnostix, Interleukin, Liposcience, MolecularMD, Navigenics, Nodality, OncoMethylome, On-Q-ity, Paragon, Precision Therapeutics, Prognomix, Prometheus, Proventys, Rules Based Medicine, Saladex, Somalogic, Tethys, Transgenomic, Veracyte, VitaPath Gen, XDx
Industry Organizations
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Industry Organizations� Personalized Medicine Coalition� 21st Century Medicine Coalition
Molecular Diagnostics – Current Public Valuations
� Big Range, not all revenue and earnings are created equal� JMP Securities currently makes a market in MYGN, GHDX and CRA shares
Price Market Cap EV CAGR
($MM) ($MM) FY1E FY2E FY3E FY1E FY2E FY3E FY1E FY2E FY3E (FY1-FY3)
Clarient Inc. CLRT $3.43 $301 $291 $114 $137 $160 2.6 2.2 1.9 2.6 2.1 1.8 19%
Cepheid CPHD $18.53 $1,107 $788 $205 $246 $292 5.4 4.5 3.8 3.8 3.2 2.7 19%
Celera Corp. CRA $6.74 $553 $232 $138 $158 $187 4.0 3.5 3.0 1.7 1.5 1.2 17%
Genomic Health Inc. GHDX $13.46 $388 $326 $176 $208 $260 2.2 1.9 1.5 1.8 1.6 1.3 21%
Gen-Probe Inc. GPRO $48.75 $2,373 $1,909 $557 $601 $659 4.3 3.9 3.6 3.4 3.2 2.9 9%
Genoptix Inc. GXDX $14.53 $255 $115 $193 $198 $213 1.3 1.3 1.2 0.6 0.6 0.5 5%
Hologic Inc. HOLX $16.12 $4,178 $5,115 $1,671 $1,750 $1,828 2.5 2.4 2.3 3.1 2.9 2.8 5%
Illumina Inc. ILMN $49.09 $6,101 $5,316 $855 $1,037 $1,199 7.1 5.9 5.1 6.2 5.1 4.4 18%
Luminex Corp. LMNX $16.07 $680 $583 $143 $174 $210 4.8 3.9 3.2 4.1 3.4 2.8 21%
Myriad Genetics Inc. MYGN $16.49 $1,551 $1,063 $393 $433 $497 3.9 3.6 3.1 2.7 2.5 2.1 12%
Mean 3.8 3.3 2.9 3.0 2.6 2.3 15%
Meadian 4.0 3.5 3.0 2.9 2.7 2.4 17%
Revenues Price/Revenue EV/Revenue
Price Market Cap EV CAGR
($MM) ($MM) FY1E FY2E FY3E FY1E FY2E FY3E FY1E FY2E FY3E (FY1-FY3)
EBIT Price/EBIT EV/EBIT
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($MM) ($MM) FY1E FY2E FY3E FY1E FY2E FY3E FY1E FY2E FY3E (FY1-FY3)
Clarient Inc. CLRT $3.43 $301 $291 $4 $12 $23 77.5 24.2 12.9 75.0 23.4 12.4 146%Cepheid CPHD $18.53 $1,107 $788 ($11) $12 $38 (103.3) 93.8 28.9 (73.6) 66.8 20.6 NACelera Corp. CRA $6.74 $553 $230 ($32) ($18) ($5) (17.1) (31.5) (119.3) (7.1) (13.1) (49.6) NAGenomic Health Inc. GHDX $13.46 $388 $326 $0 $11 $27 5,878.1 36.4 14.1 4,940.4 30.6 11.9 1940%
Gen-Probe Inc. GPRO $48.75 $2,373 $1,909 $151 $173 $199 15.7 13.7 11.9 12.7 11.0 9.6 15%Genoptix Inc. GXDX $14.53 $255 $115 $35 $35 $41 7.3 7.4 6.3 3.3 3.3 2.8 8%Hologic Inc. HOLX $16.12 $4,178 $5,115 $532 $571 $620 7.8 7.3 6.7 9.6 9.0 8.2 8%Illumina Inc. ILMN $49.09 $6,101 $5,316 $193 $265 $326 31.6 23.0 18.7 27.6 20.1 16.3 30%Luminex Corp. LMNX $16.07 $680 $583 $16 $31 $47 42.2 21.8 14.3 36.2 18.7 12.3 71%Myriad Genetics Inc. MYGN $16.49 $1,551 $1,148 $149 $170 $205 10.4 9.2 7.6 7.7 6.8 5.6 17%
Mean 19.2 17.9 13.5 16.2 15.4 11.1 25%
Meadian 13.1 17.7 12.9 11.1 14.8 11.9 16%
Price Market Cap EV CAGR FCF FCF Yield FCF Margin
($MM) ($MM) FY1E FY2E FY3E FY1E FY2E FY3E (FY1-FY3) LTM LTM LTM
Clarient Inc. CLRT $3.43 $301 $291 $0.03 $0.10 $0.19 103.0 32.9 18.5 136% $2 NA NA
Cepheid CPHD $18.53 $1,107 $788 ($0.20) $0.10 $0.48 (90.5) 177.3 39.0 NA ($3) NA NACelera Corp. CRA $6.74 $553 $232 ($0.28) ($0.09) $0.05 (24.0) (77.5) 143.4 NA ($1) NA NAGenomic Health Inc. GHDX $13.46 $388 $326 ($0.02) $0.29 $0.75 (874.0) 46.3 17.9 NA $5 1.3% 3.1%
Gen-Probe Inc. GPRO $48.75 $2,373 $1,909 $2.17 $2.46 $2.81 22.4 19.8 17.3 14% $111 4.7% 20.7%Genoptix Inc. GXDX $14.53 $255 $115 $1.07 $1.05 $1.11 13.5 13.8 13.1 2% $11 4.4% 5.7%Hologic Inc. HOLX $16.12 $4,178 $5,115 $1.17 $1.28 $1.39 13.7 12.6 11.6 9% $443 10.6% 26.8%
Illumina Inc. ILMN $49.09 $6,101 $5,316 $0.99 $1.33 $1.66 49.8 37.0 29.6 30% $161 2.6% 21.7%Luminex Corp. LMNX $16.07 $680 $583 $0.19 $0.40 $0.69 84.3 40.0 23.2 91% $12 1.8% 9.0%Myriad Genetics Inc. MYGN $16.49 $1,551 $1,148 $1.04 $1.14 $1.28 15.9 14.5 12.9 11% $147 9.5% 40.6%
Mean 33.3 27.1 20.3 26% 5% 18%
Meadian 19.2 26.3 17.9 12% 4% 21%
EPS Price/Earnings
MDx Company Multiples Have Contracted
9.5x
10.3x
8.8x
7.1x 7.3x
5.5x 5.5x
4.1x3.6x 3.5x 3.4x
8.2x
3.4x
9.5x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
LTM
Rev
enue
Mul
tiple
s(1)
9.5x
10.3x
8.8x
7.1x 7.3x
5.5x 5.5x
4.1x3.6x 3.5x 3.4x
8.2x
3.4x
9.5x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
LTM
Rev
enue
Mul
tiple
s(1)
10
3.6x 3.5x 3.4x2.6x
3.4x
0.0x
2.0x
4.0x
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Today
GPRO MYGN CPHD CRA GHDX GXDX Average
3.6x 3.5x 3.4x2.6x
3.4x
0.0x
2.0x
4.0x
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Today
GPRO MYGN CPHD CRA GHDX GXDX Average
(1) Revenue multiples = Average company enterprise values during the quarter / LTM revenue
Source: SEC Filings and Capital IQ
MDx Company Multiples Have Contracted (cont.)
� Reimbursement and regulatory issues have continued to be overhangs for the MDx industry
� Currently, there is not a clear regulatory pathway for MDx and other genetic tests
� Visibility regarding the long-term effects of gene patent litigation is limited
� Concerns regarding the prospects for substantial future growth from the pipeline of MDx
Several industry and company-specific events have caused a gradual contraction in MDx company multiples over the last few years
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� Concerns regarding the prospects for substantial future growth from the pipeline of MDx companies
� Concerns regarding the delay for selected companies to achieve profitability
Too Many High Profile “Train Wrecks” in last 24 months
Sequenom� Evolving technology platform� Large validation study needed� Fraud
Myriad Genetics� Declining growth� Discretionary products� Reimbursement challenges� Communication failure
Genoptix
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Genoptix� Revenue decline� Competitive pricing pressure� Discretionary Products
Molecular Diagnostics – The Opportunities
� Focus is on important clinical concern� Robust clinical exist to address the concern� Pharmacoeconomic value created is compelling� Reimbursement/Adoption drivers are clear� Franchise is protectable� Commercialization can drive profitability
Despite the multiple issues currently facing the MDx industry, we believe that MDx companies are attractive to investors, if:
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Attractive business models may include:� Hybrids consisting of proprietary tests as well as quality laboratory services (CLIA)� Capital equipment/high value analyte model may be acceptable in monogenic, distributed clinical indications
The “Paradigm Setter”
Genomic Heath� High medical utility products� Impacts treatment paradigms� Informs therapeutic outcomes
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30
140
160
180
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0
5
10
15
20
4Q05 1Q06 2Q063Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q082Q08 3Q08 4Q08 1Q09 2Q09 3Q094Q09 1Q10 2Q10
Price ($)
0
20
40
60
80
100
120
Sales ($MMs)
Price Sales
Broad Institutional Ownership
Total
Institution(1)
GPRO MYGN CPHD CRA GHDX QDEL CLRT GXDX Exposure
1. Fidelity Management & Research � � � � � � � $387.7
2. BlackRock Fund Advisors � � � � � � � � 330.7
3. Vanguard Group, Inc. � � � � � � � � 261.0
4. Morgan Stanley Investment Management, Inc. � � � � � 233.0
5. Manning & Napier Advisors, Inc. � � 173.3
6. State Street Global Advisors � � � � � � � � 146.8
7. BAMCO, Inc. � � 126.9
8. Columbia Wanger Asset Management LP � � 123.3
9. BlackRock Advisors LLC � � � � � � � � 107.0
10. Champlain Investment Partners LLC � � � 88.9
11. Parnassus Investments � � 85.8
12. OppenheimerFunds, Inc. � � � � � � 83.6
13. Royce & Associates LLC � � � � � 79.6
14. Janus Capital Management LLC � � 72.3
15. Columbia Management Investment Advisers LLC � � � � � � � � 69.3
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15. Columbia Management Investment Advisers LLC � � � � � � � � 69.3
16. Calamos Advisors LLC � � 58.0
17. Northern Trust Investments � � � � � � � � 57.4
18. Wellington Management Co. LLP � � � � � � 56.1
19. Dimensional Fund Advisors, Inc. � � � � � � � � 52.2
20. AllianceBernstein LP � � � � � � � � 49.7
21. Brown Capital Management, Inc. � � 48.4
22. Perkins Investment Management LLC � � 48.1
23. TimesSquare Capital Management LLC � � � 46.2
24. D. E. Shaw & Co., Inc. � � � � 40.8
25. T. Rowe Price Associates, Inc. � � � � � 39.4
26. Invesco Advisers, Inc. � � � � � � 39.3
27. TIAA-CREF Asset Management LLC � � � � � � � � 37.2
28. American Century Investment Management, Inc. � � � � 33.7
29. Norges Bank Investment Management � � � � � � � 33.6
30. Lord Abbett & Co. LLC � � � 33.2
� Indicates holdings < $10.0 million Total: $3,042.3
� Indicates holdings ≥ $10.0 million
($ in millions)(1) Includes institutions that own two or more of the selected companiesSource: FactSet Systems
Selected Molecular Diagnostics Private Placements
3rd 06/11/10 Predictive Biosciences Develops diagnostic products for informed cancer management. It
specializes in proteomics, diagnostics, oncology, and tumor
biomarkers
ProQuest Investments, Flybridge Capital,
Highland Capital, Kaiser Permanente, New
Enterprise Associates
N/A N/A N/A $25.4 N/A Marketed
3rd 06/04/10 Veracyte Develops diagnostics for thyroid and non-small cell lung cancer Domain Associates, Kleiner Perkins Caufield &
Byers, TPG Growth, Versant Venture
N/A N/A N/A 28.4 N/A Product development
9th 05/25/10 Precision Therapeutics Develops predictive drug response tests that quantifies a cancer
patient's probable tumor response to various chemotherapeutic and
biologic agents
Bain Capital, Adams Capital , Birchmere, Draper
Triangle, Hillman, Longitude, Quaker BioVentures,
TVM
N/A N/A N/A 35.0 N/A Shipping product
4th 05/06/10 CardioDx Focuses on serving cardiologists by offering genomic diagnostics GE Healthcare, Duff Ackerman & Goodrich, KPCB,
Mohr Davidow Ventures, Pappas Ventures, TPG
Growth
N/A N/A N/A 34.6 N/A Product development
2nd 04/08/10 Biocartis Develops diagnostics technology platform for multiplexed detection of
bio-analytes. It focuses on integrated molecular and
immunodiagnostics based on its micro-technology platform
Advent Venture, Aescap Venture, Johnson &
Johnson Development
N/A N/A N/A 36.1 N/A Shipping product
3rd 03/22/10 Nodality Discovers and develops personal diagnostics characterizing cell
signaling pathways in defined cellular sub-populations of malignant
and normal cells from individual patients
Lab Corp, Pfizer Venture, Kleiner Perkins
Caufield & Byers, Maverick Capital, TPG Ventures
N/A N/A N/A 15.5 N/A Product development
Post $
ValueStage of Development
Prior
Round
Post $
Value
Pre $
Value
Round
Step-upRaisedRound Name Description Round Investor(s)
(1)Close Date
16
(1) Lead investors in boldSource: VentureSource and Company press releases
and normal cells from individual patients
1st 01/20/10 CancerGuide Diagnostics Develops and commercializes genomic-based clinical and
pharmaceutical cancer tests and services
Hatteras Venture Partners, Intersouth
Partners, Lab Corp
N/A N/A N/A 10.5 N/A Product development
2nd 12/31/09 Molecular Biometrics Develops non-invasive clinical tools for use in personalized medicine
to evaluate normal biologic function in health and in disease, and for
drug discovery through pharmacodiagnostics
Oxford Bioscience Partners, Safeguard
Scientifics
$18.8 $21.0 1.1x 12.5 $33.5 Product development
2nd 12/15/09 Molecular Partners Engages in the discovery and development of Designed Ankyrin
Repeat Proteins (DARPins) for therapeutic, diagnostic, and
biotechnological applications
Essex Woodlands Health Ventures, BB Biotech,
Endeavour Vision, Index Ventures, Johnson &
Johnson Development
N/A N/A N/A 35.7 N/A Product development
2nd 12/03/09 Curetis Develops and commercializes tools for diagnosing infectious diseases Aeris Capital, BioMedPartners, KfW
Mittelstandsbank, Life Sciences Partners BV
N/A N/A N/A 24.0 N/A Product development
3rd 11/30/09 Crescendo Bioscience Develops quantitative and objective diagnostic tools to provide
rheumatologists with clinical insights for patients with autoimmune and
inflammatory diseases
Kleiner Perkins Caufield & Byers, Mohr Davidow
Ventures
N/A N/A N/A 12.6 N/A Product development
2nd 11/03/09 On-Q-ity Develops diagnostics tools for the treatment of cancer patients at
various stages of the treatment cycle
Atlas Venture, Bessemer Venture, Mohr Davidow
Ventures, Northgate Capital, Physic Ventures
N/A N/A N/A 26.0 N/A Product development
3rd 11/09/09 Tethys Bioscience Develops novel tests for chronic diseases such as diabetes; offers
PreDx to measure diabetes risk
Aeris Capital, Intel Capital, Kleiner Perkins Caufield
& Byers, Mohr Davidow Ventures, Wasatch
Advisors
N/A N/A N/A 25.0 N/A Shipping product
2nd 10/27/09 Biodesix Develops and commercializes mass spectrometry-based clinical
diagnostic products to analyze protein content in biological samples
Crabtree Ventures, Individual Investors N/A N/A N/A 10.0 N/A Product development
1st 10/16/09 Integrated Diagnostics Develops diagnostic products that enable physicians and patients to
manage cancer, diabetes, and Alzheimer's through blood tests
InterWest Partners, Wellcome Trust N/A N/A N/A 30.0 N/A Startup
4th 10/5/2009 mtm laboratories Develops and manufactures in-vitro diagnostics systems for the
detection and diagnosis of cervical and cancers
Glide Healthcare Partners, HBM BioVentures,
Heidelberg Innovation, LBBW Venture, Wellington
Partners
N/A N/A N/A $53.5 N/A Shipping product
5th 9/22/2009 Agendia Develops tests that assist healthcare professionals to determine the
diagnosis, prognosis, and therapeutic responsiveness of cancers in
individual patients
Glide Healthcare Partners, Global Life Science
Ventures GmbH, ING Group, Van Herk Group
N/A $159.7 N/A 23.0 $182.7 Shipping product
6th 8/5/2009 XDx Develops and commercializes noninvasive gene expression-based
tests for the monitoring of transplant rejection and autoimmune
diseases
Bristol-Meyers Squibb, Burrill & Company, Duff
Ackerman & Goodrich, Integral Capital Partners,
Intel Capital
N/A N/A N/A 14.4 N/A Marketed
6th 7/31/2009 Pacific Biosciences Develops a transformative single-molecule (SMRT) DNA sequencing
platform, which enables the observation of natural DNA synthesis
Alliance Bernstein, Alloy Ventures, Blackstone
Cleantech, Duff Ackerman & Goodrich, Intel Capital,
Kleiner Perkins
$455.0 455.0 1.0x 68.0 523.0 Product development
2nd 7/1/2009 Helixis Develops advanced nucleic acid analysis tools for research and
clinical diagnostics application
Advanced Technology Ventures, Domain
Associates, Okapi Venture Capital, SVB Capital
N/A 20.0 N/A 10.0 30.0 Product development
5th 9/4/2008 Pelikan Technologies Engages in the development, manufacture, and marketing of hand-
held medical diagnostic and monitoring devices
Bio*One Capital, Clarus Ventures, Global Life
Science Ventures, HBM BioVentures, Mannheimer
Holdings
N/A N/A N/A 38.0 N/A Product development
Round Name Description Round Investor(s)(1)Close Date
Post $
ValueStage of Development
Prior
Round
Post $
Value
Pre $
Value
Round
Step-upRaised
Selected Molecular Diagnostics Private Placements (cont’d)
17
Holdings
3rd 9/4/2008 Pathwork Diagnostics Develops and delivers molecular diagnostics for oncology Abingworth Management, Advent Venture
Partners, Novus, Prospect Venture, Venrock
Associates, Versant
N/A N/A N/A 20.0 N/A Marketed
4th 7/17/2008 BG Medicine Engages in the discovery, development, and commercialization of
molecular diagnostics based on biomarkers
Flagship Ventures, GE, Glide Healthcare, Humana
Ventures, Legg Mason, SMALLCAP World
43.0 177.7 4.1x 40.0 217.7 Marketed
2nd 6/30/2008 Crescendo Bioscience Develops quantitative and objective diagnostic tools to provide
rheumatologists with clinical insights for patients with autoimmune and
inflammatory diseases
Kleiner Perkins Caufield & Byers, Mohr
Davidow Ventures
N/A N/A N/A 15.0 N/A Product development
2nd 11/1/2007 Asuragen A RNA-based therapeutic and diagnostics company Growth Capital Investors, PTV Sciences, Telegraph
Hill Partners, Individual Investors
N/A N/A N/A 18.5 N/A Marketed
3rd 2/8/2006 Accumetrics Develops and manufactures diagnostic instrumentation and test kits
for platelets function assessment
RiverVest Venture Partners, Essex Woodlands
Health Ventures, Fisher Healthcare, Kaiser
Ventures, KB Partners, PTV Sciences
N/A 35.8 N/A 8.3 44.0 Shipping product
2nd 5/30/2005 InterGenetics Develops molecular diagnostics and targeted therapies for cancer WilMac Health Partners, Swisher Family Trust,
Chisholm Private Capital, Individual Investors
7.5 31.0 4.1x 8.0 39.0 Product development
Later 2/28/2005 Perlegen Sciences Engages in the discovery of genetic variations that provide
physicians with information to improve the clinical decision-making
process
CSK Venture Capital, Affymetrix, BioFrontier
Partners, CMEA Capital, Maverick Capital, MPM
Capital
175.7 180.4 1.0x 74.0 254.4 Clinical Trials
3rd 1/15/2001 Cytocell Provides diagnostic solutions for disease management in oncology
and constitutional cytogenetics.
3i Group, Apax Partners, Gartmore Private Capital 23.5 25.1 1.1x 4.4 29.6 Marketed
Mean $120.6 $122.9 2.1x $26.1 $150.4
Median 33.3 35.8 1.1x 24.0 44.0
High 455.0 455.0 4.1x 74.0 523.0
Low 7.5 20.0 1.0x 4.4 29.6
(1) Lead investors in boldSource: VentureSource and Company press releases