Progenity snagged $125M in funding that will allow the company to accelerate development of its gastrointestinal platform.
Privately-held Progenity, Inc. snagged $125 million in funding that will allow the company to accelerate development of its gastrointestinal platform.
This morning, the California-based company announced the privately placed Series B funding round, which was led by a fund managed by an existing investor, Athyrium Capital Management.
Harry Stylli, the founder and board chairman, said the financing round will be used to support the development of its GI platform targeting diagnostics and therapeutics for the GI tract. That new system includes precision molecular diagnostics tools, precision therapeutics, microbiome analytics, and consumer health nutrition.
GI diseases, such as irritable bowel syndrome, fatty liver disease, inflammatory bowel disease and gastrointestinal cancers, impact about one-third of Americans. Progenity said its outpatient diagnostics and therapeutic programs are designed to provide new medical management options for patients. The company is developing a portfolio of powerful precision molecular diagnostics, such as small intestine bacterial overgrowth (SIBO), microbiome analytics for both the upper and lower GI tract, and consumer health nutrition applications.
Additionally, a portion of the proceeds will be used to enhance Progenity’s and service offerings to our physician clients in the Prenatal and broader Women’s Health market on a national scale.
“We shall continue to invest in new assets to strengthen our internal innovation and commercial efforts,” Stylli said in a statement.
Progenity has a portfolio of innovative technologies and tests for pre-eclampsia, genetic carrier testing, inheritable cancer genetics, liquid biopsy and noninvasive prenatal testing (NIPT). In 2015, the company acquired Carmenta Bioscience for its preeclampsia diagnostic programs.
With the new financing round, Stylli praised the continued support of Athyrium, as well as new investors, who were not disclosed in the announcement.
Jeffrey Ferrell, managing partner of Athyrium, commended the work done by Progenity. He said the diagnostics platform the company has built is a “testament” to Progenity’s vision in women’s health and the growing oncology and gastroenterology franchises.
“With this financing, we believe that the company will be well capitalized to execute on its internal pipeline and business development opportunities,” Ferrell said in a statement.
Athyrium, which focuses on investment opportunities in the global healthcare sector, has more than $3.5 billion of assets under management as of Sept. 30. In addition to Progenity, Athyrium has helped bankroll BioFire Diagnostics, Apollo Endosurgery,, artificial heart manufacturer SynCardia Systems, Alcresta Therapeutics and Maryland-based Pharmaceutics International, Inc.
