Diagnostics luminary Foundation Medicine is looking to cash in on the burgeoning IPO trend, ticking up the top of its expected haul to $92 million.
In an amended SEC filing, Foundation said it plans to offer 5 million shares at between $14 and $16 apiece, earmarking another 750,000 shares for its underwriters, should they choose to jump in. At the midpoint of its range, Foundation would haul in $75 million and clock a market value of $421 million. In its initial filing back in June, Foundation set its max at $86.3 million.
Once the IPO's complete and if the underwriters get involved, Foundation expects to net roughly $77.4 million, and the company will put $18 million of that toward growing its sales force, spend $10 million to expand its lab operations and use $22 million on R&D and infrastructure. The company will trade under "FMI" on the Nasdaq.
Foundation, a 2012 member of FierceBiotech's Fierce 15, has been riding the success of its FoundationOne cancer diagnostic since launching the test last year. FoundationOne is a sequencing-based assay that combs 236 cancer-related genes to match patients with ideal treatments, and while the company hasn't secured CMS reimbursement for the diagnostic, it has grabbed the attention of some headline-worthy drug developers looking to partner up.
Johnson & Johnson ($JNJ), Novartis ($NVS) and Sanofi ($SNY) are on Foundation's list of biopharma collaborators, and companion diagnostic work accounted for $8 million of the company's $10.6 million in 2012 revenue with FoundationOne sales making up the rest.
Since its opening its doors in 2009, Foundation has wooed investment dollars from Third Rock Ventures, Bill Gates, Google Ventures and Kleiner Perkins Caufield & Byers.
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Special Report: Foundation Medicine – 2012 Fierce 15