NEW YORK (GenomeWeb) – Pathway Genomics today announced that it has raised $40 million in a Series E round of financing.
"This capital will allow us to continue to expand and validate the tests we offer, grow our sales force, and invest in cutting-edge technology for our CAP- and CLIA-accredited laboratories," Pathway Genomics Founder and CEO Jim Plante said in a statement.
Among the participants in the round is IBM Watson, which is working with Pathway Genomics on the development of a mobile application for personalized health and wellness guidance.
The firm said that it expects to complete additional Series E investments in the first quarter of this year.
Pathway Genomics offers a variety of tests including ones for cancer detection, for identifying individuals carrying disease-associated genetic variants, and for evaluating patient risk for heart-related conditions.
The firm recently agreed to pay the US Department of Justice $4 million to settle allegations that it improperly paid kickbacks to physicians and physician groups in exchange for patient referrals. In September, the company received a letter from the US Food and Drug Administration over how it markets its CancerIntercept Detect liquid biopsy cancer test. Among the FDA's concerns was its belief that the test was being marketed directly to consumers and that it had yet to be adequately clinically validated.