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MDx Firm AltheaDx Files for $69M IPO

NEW YORK (GenomeWeb) – Molecular diagnostics firm AltheaDx filed a preliminary prospectus on Monday with the US Securities and Exchange Commission for an initial public offering with a maximum aggregate offering price of $69 million.

The San Diego-based company has not yet priced its shares or said how many shares it plans to offer. It intends to list on the Nasdaq Global Market under ticker symbol "IDGX." Citigroup and Jefferies are the joint book-running managers on the proposed offering, and William Blair and Cantor Fitzgerald are the co-managers.

In its Form S-1, AltheaDx said that it specializes in personalized medicine and its IDgenetix portfolio of tests enables clinicians to tailor treatments for ailments such as cardiovascular disease, neuropsychiatric disorders, and pain. The company acquired the tests through its acquisition of IDgenetix in May 2013.

The tests analyze genes involved in the metabolism and pharmacological activity of drugs and provide clinicians information about the functionality of metabolic enzymes and biological drug targets for each patient. AltheaDx added that its algorithm screens for unfavorable metabolic interactions that result from multiple prescription drugs, over-the-counter drugs, and herbal supplements, as well as environmental and dietary factors that may change the metabolism of certain drugs.

The firm launched eight IDgenetix tests in October 2013 and since then it has launched five additional tests. Through September 2014, the firm said that it completed IDgenetix tests for more than 13,500 patients, of which more than 7,500 samples were completed in the quarter ending September 2014.

Additionally, AltheaDx offers R&D services, primarily in the cancer space, to biopharmaceutical partners, using its expertise in next-generation sequencing, computational biology, and information technology to analyze patient samples from preclinical through clinical development. It said that it also is evaluating "a number" of companion diagnostic assays in late-stage clinical trials.

Through the first nine months of 2014, the firm posted $13.6 million in revenues and a net loss of $5.9 million. For full-year 2013, AltheaDx had $7.3 million in revenues and a net loss of $4.1 million. As of Sept. 30, it had $7.5 million in cash and cash equivalents.

AltheaDx's management team comprises CEO Greg Hamilton; President and Chief Operating Officer Jorge Garces; CFO Jeffrey Black; and CMO Juan-Sebastian Saldivar.

According to SEC documents, the company raised $150,000 toward a targeted goal of $300,000 in April. In June 2013, it raised $7.2 million.