NanoString closes $20M Series D round of equity financing

NanoString Technologies, Inc., a privately held provider of life science tools for translational research and developer of molecular diagnostics, today announced that it has closed $20 million in a Series D round of equity financing. New investors include GE, BioMed Ventures and Henri Termeer, former Chairman and CEO of Genzyme Corporation. All previous venture investors in NanoString also participated in the financing, including Clarus Ventures, Draper Fisher Jurvetson and OVP Venture Partners.

“GE Healthcare's growing personalized medicine portfolio encompasses a wide range of life science tools and diagnostic solutions. We believe NanoString's nCounter® Analysis System gives researchers the potential to take basic biomarker discoveries into the clinic. We look forward to exploring ways to collaborate with the NanoString team.”

The proceeds of the financing will be used to continue the growth of NanoString's life science tools business, as well as advance the development of the company's first molecular diagnostic product, a breast cancer assay based on the PAM50 gene expression signature. Results from the first clinical study evaluating NanoString's breast cancer assay will be presented at the 2011 San Antonio Breast Cancer Symposium (SABCS) on December 8.

This investment in NanoString represents the first by GE's healthymagination Fund that is aligned with GE Healthcare's recently announced $1 billion commitment to new oncology R&D. "NanoString is a good strategic fit with GE Healthcare, given our common focus on oncology," said Pascale Witz, President and CEO of GE Healthcare's Medical Diagnostics business. "GE Healthcare's growing personalized medicine portfolio encompasses a wide range of life science tools and diagnostic solutions. We believe NanoString's nCounter^® Analysis System gives researchers the potential to take basic biomarker discoveries into the clinic. We look forward to exploring ways to collaborate with the NanoString team."

Henri Termeer served as Chairman, President and CEO of Genzyme Corporation until July 2011. During his 27 year tenure, Genzyme introduced numerous innovative therapeutics and diagnostics for genetic disease and cancer. "The development and use of targeted cancer therapies requires understanding each patient's tumor at a molecular level," said Mr. Termeer. "NanoString's technology provides an invaluable tool in cancer research and drug development, and has the potential to enable a globally scalable approach to personalized medicine."

"This financing has brought both growth capital and a constellation of healthcare leaders into NanoString's orbit," said Brad Gray, President and CEO of NanoString Technologies. "We look forward to applying these new funds and relationships to growing the installed base for our nCounter research platform, and in parallel, advancing our molecular diagnostics program through clinical development and regulatory approval."

NanoString's nCounter Analysis System is a fully automated, multi-application digital detection and counting system with a very simple workflow. The nCounter system has been employed in basic and translational research since it was first introduced in 2008. NanoString provides assays for gene expression, miRNA analysis and copy number variation. NanoString recently launched its second generation nCounter system, which includes the hardware upon which the company will pursue regulatory clearance for its breast cancer subtyping assay and other molecular diagnostic assays.

The nCounter Analysis System is currently available for Research Use Only.