NEW YORK (GenomeWeb News) – Foundation Medicine expects to price its initial public offering at between $14 and $16 per share, the company said in a recently amended Form S-1.
The Cambridge, Mass.-based cancer genomics firm added that it plans to offer 5 million shares, and that based on the midpoint price of $15 per share, it expects net proceeds of $66.9 million from its IPO.
Foundation plans to trade on the Nasdaq under ticker symbol "FMI."
Goldman Sachs and JP Morgan Securities are the joint book-running managers on the offering. Leerink Swann and Sanford Bernstein are also named as underwriters. Foundation has granted the underwriters a 30-day option to purchase up to an aggregate of 750,000 additional shares of its common stock.
If the underwriters exercise their options to purchase additional shares in full, net proceeds are anticipated to reach about $77.4 million, Foundation said in its amended Form S-1/A filed with the US Securities and Exchange Commission.
When the company announced its plans to go public in July, it said that it expected to raise as much as $86.3 million.
It noted in its amended S-1 that the number of tests delivered to ordering physicians for its FoundationOne test has increased to 1,626 tests in the second quarter of 2013 from 1,140 tests in the first quarter, and the number of tests delivered in the third quarter continues to "experience significant growth." Its sales force has increased to 18 individuals from 10 in late May, it added.
Last month, the company said revenues rose sharply year over year during the first half of 2013 to $11.1 million, while its net loss increased 54 percent to $17.4 million. It had $36.0 million in cash and cash equivalents as of June 30.
For the first six months of the year, the average revenue per FoundationOne test for clinical use that met the company's revenue recognition criteria was about $3,700.
Foundation was founded in 2009 and 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. FoundationOne, its first clinical product, provides molecular information about a patient's cancer that can be used in the patient's routine care.