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CareDx Sets Price Range for Proposed IPO, Anticipates Net Proceeds of up to $50.5M

NEW YORK (GenomeWeb) – CareDx expects to price the shares in its proposed initial public offering at between $15 and $17 per share, with net proceeds anticipated at up to $50.5 million.

The Brisbane, Calif.-based molecular diagnostics firm said in an amended Form S-1 filed today with the US Securities and Exchange Commission that it plans to offer more than 3.1 million shares of its common stock in the IPO. Its shares would list on the Nasdaq under ticker symbol "CDNA." The underwriters listed in its SEC document are Piper Jaffray, Leerink Partners, Raymond James, and Mizuho Securities.

At the $16 midpoint of the share-price range, net proceeds are anticipated to be about $43.5 million. If the offering's underwriters exercise their overallotment options in full, that figure would increase to $50.5 million.

CareDx, formerly called XDx, develops molecular diagnostic tools to help physicians monitor heart transplant recipients and make personalized treatments. Its lead service is AlloMap, a blood-based test used to monitor heart transplant recipients for acute cellular rejection.

The US Food and Drug Administration cleared AlloMap for marketing in 2008. The test is also CE-marked, and since its launch in January 2005, CareDx has performed more than 55,000 commercial AlloMap tests, the company said. The test is covered by Medicare, as well as private payors including Aetna, Cigna, Humana, the Kaiser Foundation Health Plan, and WellPoint.

In May, CareDx announced an agreement to buy transplant diagnostic firm ImmuMetrix for an undisclosed amount. Last month, it inked a supply agreement with Illumina for next-generation sequencing technologies, in a deal aimed at expanding CareDx's product pipeline from the gene-expression-based AlloMap to cell-free DNA-based tests. Such tests are being developed for heart and kidney transplants, it said in its preliminary prospectus.

CareDx also disclosed that Illumina made a $5 million investment in the firm.

In 2013, the company recorded $22.1 million in total revenues and a net loss of $3.5 million. During the first quarter of 2014, total revenues reached $5.9 million, while its net loss was $1.3 million. As of March 31, CareDx had $4.8 million in cash and cash equivalents, it said.

The management team is headed by President and CEO Peter Maag. James Yee serves as CMO, while Matthew Meyer is CareDx's chief business officer. Ken Ludlum is the CFO, and Mitchell Nelles is the COO.

The company had previously filed for an IPO in 2007 but pulled it the following year citing only market conditions.