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Cancer Genetics Partners with Gilead on CLL Clinical Trials; Revises Expected Proceeds from IPO

NEW YORK (GenomeWeb News) – Cancer Genetics today announced that Gilead Sciences has selected it to provide clinical trial services and molecular profiling of chronic lymphocytic leukemia patients.

Separately, the Rutherford, NJ-based cancer diagnostic company again lowered the anticipated net proceeds from its planned initial public offering.

Its deal with Gilead covers both national and international clinical trials. Cancer Genetics will use its SelectOne program that includes genomic assays in CLL, data and logistics management, as well as CLIA- and CAP-accredited clinical laboratory testing.

It added that ongoing studies employ several methodologies such as flow cytometry, fluorescent in situ hybridization, and molecular assays, "including mutational analyses of IGHV, TP53, NOTCH1" and Cancer Genetics' MatBA-CLL/SLL, an array-CGH assay for mature B-cell neoplasm.

The company said it anticipates the trials to last several years "and may potentially enable an expedited and more efficient development timeline based on improved patient stratification."

Financial terms of the deal were not disclosed.

Also, late Monday, Cancer Genetics disclosed in an amended Form S-1 filed with the US Securities and Exchange Commission that it has revised its planned IPO. It now said that it plans to offer 1.65 million shares of its stock at a price of between $10 and $12 per share. At the midpoint price of $11 per share, the offering is expected to bring in net proceeds of about $14.3 million. If the offering's underwriters, Aegis Capital and Feltl & Co., exercise their over-allotment option in full, net proceeds would be about $16.8 million.

It is the second time in two weeks that the company has lowered the expected proceeds from its planned IPO. Last week, it said that it planned to offer 1.85 million shares of its stock for between $10 and $12 per share. At the $11 midpoint price, net proceeds would have been about $16.3 million, or $19.2 million if Aegis and Feltl &Co. exercised their over-allotment option in full.

Before that, Cancer Genetics had said that it expected to bring in net proceeds of as much as $23.5 million from its IPO. The company initially filed its registration statement for the IPO in December 2011, saying it hoped to raise $48.6 million in net proceeds.

If approved, Cancer Genetics' stock would list on Nasdaq under ticker symbol "CGIX".