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NanoString Launches $50M Public Stock Offering as Prelim Q2 Revenues Exceed Guidance

NEW YORK (GenomeWeb) – NanoString Technologies said after the close of the market on Monday that its preliminary second quarter revenues grew about 11 percent year over year, exceeding previous guidance.

The company also announced a $50 million underwritten public offering of its common stock, pursuant to an existing shelf registration statement. In connection with the offering, NanoString said it also expects to grant underwriters a 30-day option to purchase up to $7.5 million worth of additional common shares.

J.P. Morgan and UBS Investment Bank are acting as joint book-running managers, and Baird is acting as lead manager.

NanoString will use the net proceeds for the development and launch of its Digital Spatial Profiling platform, as well as continued commercialization of its portfolio of nCounter-based products, general corporate purposes, and working capital.

The company announced in April that it had entered commercial partnerships with five contract research organizations in an effort to expand access to the DSP technology in advance of an expected commercial launch in 2019.

Regarding its preliminary earnings, NanoString said that product and services revenue for the quarter ended June 30, 2018, was $20.4 million, compared to a prior guidance of $18.5 to $19.5 million. 

This included $10.3 million in consumable revenue, $5.5 million in instrument revenue, $2.5 million in revenue from the company's Prosigna breast cancer test, and $2.1 million in service revenue.

NanoString also said that the installed base for its nCounter systems rose to approximately 670 as of June 30.

"I’m pleased with our performance in the second quarter, which included 11 percent growth in our product and service revenue, bringing our growth through the first half of 2018 to approximately 13 percent," NanoString President and CEO Brad Gray said in a statement.

"Consumable pull-through was at the high end of our guided range, with panel sales growing just over 30 percent and record Prosigna revenue. In addition, customer interest in our Digital Spatial Profiling continued to grow, resulting in strong service revenue growth driven by our technology access program," he added.