Drug testing outfit Cordant Health Solutions has raised $12.8 million in debt and equity financing as the combination of 5 formerly independent laboratories seeks to bring its breadth of services to a fragmented industry.
Another $1.1 million remains to be raised in the funding round. The filing with the SEC does not disclose the name or types of investors, nor the distribution of equity and debt among the large financial haul.
The recent financing suggests the company's expansionist vision remains intact. In addition, a $600,000 equity-only round concluded in January, according to the SEC.
Formed in 2012, Cordant consists of a network of 5 labs, each with a separate specialty in the drug testing/toxicology arena.
The company was previously named Sterling Reference Laboratories after its original member in Tacoma, WA, which specialized in testing in the criminal justice market. Labs in Worcester, MA, and Denver, CO, are known for their pain management testing, while another on Long Island was bought out due to its expertise in drug testing via oral fluid, hair and blood samples. Finally, the newest addition, Norchem Laboratory in Flagstaff, AZ, also specializes in the criminal justice market and has a substance abuse case management program.
Indeed, the Cordant test menu is large. Screens and confirmations are offered via testing of multiple modalities rather than just traditional urine thanks to the Long Island lab. The drugs tested range from antidepressants to opiates, nicotine, cocaine, stimulants and barbiturates, among others.
In addition to the 5 laboratories, Cordant has a worker's compensation division in Tampa, FL.
The company changed its name to Cordant Health Solutions in January. In the release announcing the new name, CEO Sue Sommer said, "It is our goal to bring together comprehensive tools and solutions to provide guidance to help prescribers, health plans, criminal justice agencies and workers' compensation organizations manage this problem. We help our customers understand the right test, at the right time, for the right information, which in turn, will contribute to reducing unnecessary testing and overprescribing."
- read the SEC filing