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Foundation Medicine Files for Public Offering of up to $150M

NEW YORK (GenomeWeb News) – Foundation Medicine has filed with the US Securities and Exchange Commission to sell up to $150 million of its common stock in a public offering.

In a Form S-1 filed with the SEC on Thursday, the Cambridge, Mass.-based firm said the "purpose of this offering is to increase our financial flexibility," and proceeds will be used to accelerate its commercial operations and R&D, as well as to expand its technology infrastructure and technology platform, and to fund ongoing and new clinical trials.

Foundation has not yet priced the offering or said how many shares it plans to offer. Goldman Sachs and JP Morgan are listed as the underwriters.

Launched in 2009, the cancer genomics analysis firm uses next-generation sequencing to provide clinically actionable genomic information about a patient's cancer, enabling physicians to optimize treatments and drug makers to develop targeted therapies. It currently has two clinical products on the market, FoundationOne, which provides molecular information about a patient's cancer for use in routine care; and FoundationOne Heme, launched in December, for blood-based cancers.

Foundation went public in September at $18 per share and raised $110.6 million in net proceeds.

Last month, Foundation reported $29.0 million in revenues for 2013 and a net loss of $42.9 million, or $4.64 per share. As of Dec. 31, 2013 the company had $124.3 million in cash and cash equivalents.

In morning trading on the Nasdaq on Friday, Foundation's shares were down 2 percent at $38.58.