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MDxHealth Raises $11.7M to Support US Expansion Efforts

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Originally published April 5.

MDxHealth's current cash position and newly raised funds will help it expand its presence in the US by opening a new CLIA lab and hiring a sales force, the company said this week.

The Liege, Belgium-based firm said it has raised approximately €8.2 million ($11.7 million) in gross proceeds through a private placement of new shares with investors. Net proceeds from the financing round exceeded the company's previously announced target of at least €6 million.

Additionally, the company said that it will place 5.4 million new ordinary shares for an offer price of €1.50 per share.

"The net proceeds of the private placement will increase MDxHealth's financial flexibility," the company said in a statement. The funds will be used to accelerate product development and to set up a CLIA laboratory and hire a sales and marketing team in the US, it said.

As of Dec. 31, 2010, MDxHealth had €10.6 million in cash and cash equivalents, compared to €18 million in 2009.

Although the company reported essentially flat year-over-year total revenues, product and service revenues nearly doubled – from €1 million in 2009 to €2 million in 2010 – due to up-front payments received from several large pharmaceutical partners who are using its proprietary biomarkers and clinical services (PGx Reporter 02/23/2011).

MDxHealth is developing the ConfirmMDx and InformMDx tests in prostate and lung cancer, which are currently in the biomarker verification stage. In colon cancer, the company's InformMDx test is undergoing feasibility testing.

The company said its plans to complete the first validation study for its prostate cancer test by the second quarter of this year and start recruiting its US sales force. By the fourth quarter, the company hopes to have established its own CLIA-certified lab.

MDxHealth expects the payment and delivery of the new shares to be on April 8. That is also the date when the new shares are likely to be listed.

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