CardioDx completes two-tranche equity financing
Published on August 27, 2012 at 9:14 AM
CardioDx, Inc., a pioneer in the field of cardiovascular genomic
diagnostics, today announced the completion of a $58 million two-tranche
equity financing. The financing included Temasek, an Asia investment
company based in Singapore; and existing investors Longitude Capital;
Artiman Ventures; Kleiner, Perkins, Caufield & Byers; J.P. Morgan; Mohr
Davidow Ventures; TPG Biotech; Intel Capital; Acadia Woods Partners;
Bright Capital; the venture arm of RU-COM; Pappas Ventures; DAG
Ventures; Asset Management Group; and GE Capital. All previous investors
participated in the round.
Proceeds from the financing will be used to support the commercial
expansion of Corus® CAD, the only clinically validated gene
expression test for obstructive coronary artery disease, and to develop
additional genomic diagnostics in the field of cardiovascular disease.
"This funding positions CardioDx well to capitalize on the significant
opportunity to improve the diagnosis of the millions of patients who
visit their physicians with symptoms suggestive of obstructive coronary
artery disease each year," said David Levison, the company's President
and Chief Executive Officer. "The favorable Medicare coverage decision
that we received earlier this month is a significant milestone that
further validates the clinical benefit of and economic rationale for
Corus CAD. This additional capital will help us expand our sales force
in the U.S., further broaden reimbursement coverage, and support
continued investments in research and development of new products."
CardioDx recently announced that Palmetto GBA, a national contractor
that administers Medicare benefits, has established coverage for the
Corus CAD gene expression test for the evaluation of patients presenting
with typical and atypical symptoms suggestive of coronary artery
disease. With this decision, the Corus CAD gene expression test is now a
covered benefit for more than 40 million Medicare enrollees in the U.S.
Studies have shown that typical and atypical presentations of stable
chest pain account for up to two percent of outpatient office visits
each year in the U.S., which equates to up to three million patients per
year in the Corus CAD intended-use population. However, a study of
nearly 400,000 patients published in The New England Journal of
Medicine in 2010 reported that as many as 62 percent of stable
patients who undergo elective invasive angiographic procedures are found
to have no obstructive coronary artery blockage, despite broad usage of
prior noninvasive imaging. The authors concluded that current modalities
used to identify patients for elective invasive angiography to diagnose
obstructive coronary artery disease have limitations, and that better
methods are needed for patient risk stratification.
As much as $5 billion is spent on noninvasive testing, imaging and
elective invasive angiography in the Corus CAD intended-use population
annually in the U.S.