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| Michael J. Pellini, CEO of Foundation Medicine |
Yesterday FierceBiotech named Foundation Medicine one of this year's Fierce 15 companies. Today the biotech unveiled a $42.5 million B round to help it continue to grow, with plans for a new diagnostic product as it scales up its commercialization effort. And the diagnostic group added A-list names like Roche and Laboratory Corp. to a syndicate that was organized by Third Rock and already included Google Ventures. Several traditional public company-investors like Deerfield also jumped in.
Foundation Medicine CEO Michael Pellini tells FierceBiotech that the money will be used to fund further expansion of its fledgling commercial operations, with plans to add a diagnostic test that can be used to evaluate hematological malignancies. The Cambridge, MA-based biotech, only two years old, already has a commercial diagnostic test on the market to evaluate solid tumors--FoundationOne, used to evaluate a wide range of tumor mutations to match patients with the best drugs--and has struck a series of partnerships with drug developers to use its technology to evaluate cancer patients being enrolled in clinical trials.
"This is a very real business," says Pellini, who likes to point out that the company has hit the streets with an actual product at a time most start-ups in the life sciences industry are still organizing early R&D work. In just the past year Foundation Medicine's staff has doubled in size, growing to 70. And while the CEO was reluctant to project where staffing will be in a year, he did say that Foundation would continue to grow.
Pellini is also mum on any IPO plans the company may be hatching. But with Deerfield in the mix of investors, some analysts are likely to see this round as a step in that direction.
"While the medical world readily accepts that genomic drivers are the key to matching patients with cancer to the best treatment for their disease, Foundation Medicine has successfully brought this concept to clinical practice," says William Slattery, partner at Deerfield Management, in a statement. "Their single, comprehensive assay uncovers cancer-driving pathways in a patient's tumor and can inform treatment decisions."
Founded by the busy venture group Third Rock, which added Google Ventures and Kleiner Perkins to the syndicate, Foundation also now enjoys the support of a group of "public crossover" funds; Deerfield Management Company, Casdin Capital, Redmile Group, one undisclosed and several "strategic" investors: Roche Venture Fund, WuXi Corporate Venture Fund, Laboratory Corporation of America Holdings.
- here's the press release
Special Report: Foundation Medicine – 2012 Fierce 15
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Looking ahead after Foundation Medicine's $42.5M financing: Could an IPO be next?
With input from @JohnCFierce