Skip to main content
Premium Trial:

Request an Annual Quote

Progenity Prices $100M IPO at $15 per Share

NEW YORK — Progenity on Friday priced its planned initial public offering of 6,666,667 shares of its common stock at $15 per share, making the transaction worth $100 million.

The Ann Arbor, Michigan-based molecular diagnostics testing lab has also granted the underwriters of the offering — Piper Sandler, Wells Fargo Securities, Robert W. Baird, Raymond James, and BTIG — a 30-day option to purchase an additional 1,000,000 shares at the offering price, which would raise another $15 million.

The $15 per share price represents the midpoint of a previously estimated price range. Progenity said will float its shares on the Nasdaq under the ticker symbol PROG beginning on Friday, with the offering expected to close on June 23.

In filings with the US Securities and Exchange Commission, Progenity said it will use the proceeds of the IPO to, among other things, fund its molecular R&D programs and advance a platform for gastrointestinal (GI) disorders that uses a localizable, ingestible capsule to obtain a GI tract sample for diagnostic analysis or to deliver a therapeutic payload.

The company also owes about $33 million to settle allegations of misconduct by three major insurance companies, it noted in the filings.

Progenity recently agreed to pay millions to insurers Cigna, Aetna, United HealthCare under settlement agreements related to allegations over undisclosed past business practices. Specifically, Progenity would pay Cigna $12 million on behalf of Avero, of which $2.5 million remains outstanding; Aetna $15 million, of which $7.5 million remains unpaid; and United HealthCare $30 million, with $23 million remaining to be paid.

Progenity also recently agreed to pay $49 million over a five-year period to resolve criminal and civil charges filed by the US Department of Justice and the State of New York over discontinued billing practices for its NIPT and microdeletion tests, as well as alleged kickbacks or inducements made to physicians and patients. In the SEC filing, however, Progenity noted it had accrued $49 million as of March 31 to cover the potential settlement.

As of March 31, Progenity had $11.6 million in cash and cash equivalents.

Earlier this week, Progenity was sued by Natera for alleged patent infringement.

The Scan

Study Examines Insights Gained by Adjunct Trio RNA Sequencing in Complex Pediatric Disease Cases

Researchers in AJHG explore the diagnostic utility of adding parent-child RNA-seq to genome sequencing in dozens of families with complex, undiagnosed genetic disease.

Clinical Genomic Lab Survey Looks at Workforce Needs

Investigators use a survey approach in Genetics in Medicine Open to assess technologist applications, retention, and workforce gaps at molecular genetics and clinical cytogenetics labs in the US.

Study Considers Gene Regulatory Features Available by Sequence-Based Modeling

Investigators in Genome Biology set sequence-based models against observational and perturbation assay data, finding distal enhancer models lag behind promoter predictions.

Genetic Testing Approach Explores Origins of Blastocyst Aneuploidy

Investigators in AJHG distinguish between aneuploidy events related to meiotic missegregation in haploid cells and those involving post-zygotic mitotic errors and mosaicism.