Crescendo Bioscience(R) Secures $56 Million in Funding to Expand Development and Commercialization of Personalized Diagnostics for Inflammatory Diseases
Funding Includes $31 Million Series C Round and $25 Million Debt Investment by Myriad Genetics
SOUTH SAN FRANCISCO, Calif., Sep 8, 2011 (GlobeNewswire via COMTEX) -- Crescendo Bioscience, a molecular diagnostics company developing quantitative biomarker tests for rheumatoid arthritis (RA) and other inflammatory diseases, announced today that it has completed a $31 million Series C equity financing and entered into a strategic investment agreement with Myriad Genetics for $25 million, raising a total of $56 million. The Series C investment round was led by aeris CAPITAL AG and was joined by existing investors Mohr Davidow Ventures, Kleiner Perkins Caufield & Byers and other investors.
The $25 million investment by Myriad Genetics is non-dilutive capital that is structured as long term debt and is accompanied by a three-year option to acquire Crescendo Bioscience for cash at a predetermined multiple of revenue based on the growth rate of Crescendo Bioscience at the time of option exercise. The option allows Crescendo Bioscience to continue to operate independently and may be exercised after Crescendo Bioscience attains a minimum revenue milestone.
Crescendo Bioscience is a leader in the development of molecular diagnostic tests for patients suffering from inflammatory autoimmune disorders, with its first products focused in rheumatoid arthritis. The company is committed to providing personalized diagnostic, prognostic, therapy selection and monitoring tools for physicians to improve patient outcomes. Crescendo Bioscience's initial product, Vectra(TM) DA, is the first blood-based molecular diagnostic test available that can determine the level of disease activity in patients with rheumatoid arthritis.
"This $56 million in funding exceeds our financing goals and is further validation of the unique market opportunity we are pursuing, the strength of our business model, and our early progress in penetrating this market," said William A. Hagstrom, Chief Executive Officer, Crescendo Bioscience. "This funding will help us accelerate the commercialization of Vectra DA and expand our pipeline of molecular diagnostic products for rheumatoid arthritis and other inflammatory diseases."
"As part of our focus on investing for future growth, we have identified Crescendo Bioscience as a franchise with strong potential; one that we believe will transform the management of chronic inflammatory diseases," said Pete Meldrum, President and Chief Executive Officer of Myriad Genetics.
"Myriad Genetics is a pioneer in the diagnostics field and brings a significant depth of experience that may help guide us in our efforts to develop and commercialize next generation molecular tests to better manage inflammatory diseases and improve the lives of patients," said Hagstrom.
About Rheumatoid Arthritis
Rheumatoid arthritis is a debilitating, highly variable, chronic disease affecting approximately 1.5 million Americans and more than 2 million people in Europe. The primary symptoms of rheumatoid arthritis are joint inflammation, pain and fatigue, with the disease often resulting in joint damage and disability. Rheumatoid arthritis is a systemic disease and can significantly damage other parts of the body as well, resulting in infection, osteoporosis and cardiovascular disease, a leading cause of death for rheumatoid arthritis patients.
About Vectra(TM) DA
Vectra DA is a quantitative, objective and reproducible multi-biomarker test that provides physicians a wide spectrum of insight into the biology of rheumatoid arthritis. This blood test measures 12 key serum biomarkers and integrates them into an easy to interpret test score to help guide patient management and complement clinical decisions throughout the disease course. Vectra DA testing is performed at Crescendo Bioscience's state-of-the-art CLIA facility within 7-10 days of receipt of sample. Physicians can either receive test results via standard report forms or via the Companies private web portal VectraView. For more information regarding Vectra DA, please visit www.Vectra-DA.com .
About Crescendo Bioscience(R)
Crescendo Bioscience is a molecular diagnostics company focused in rheumatology and located in South San Francisco, CA. Crescendo Bioscience develops quantitative, objective, biology-based tests to provide rheumatologists with deeper clinical insights to help enable more effective management of patients with autoimmune and inflammatory diseases. For more information, please visit the company's website at www.CrescendoBio.com .