GenMark raising $60M as it moves on from stock plunge

GenMark Diagnostics ($GNMK) is selling off $60 million in common stock, looking to scrape together some cash and move on from an early summer fright that sent investors reeling.

The Carlsbad, CA, company recruited J.P. Morgan to run the books for its stock sale, and underwriters have a 30-day option to buy up to $9 million more in shares, GenMark said. With the proceeds, GenMark plans to expand its domestic sales team, invest in its international presence and put money into R&D and infrastructure.

GenMark is also looking to diversify its revenue sources. Natural Molecular Testing, the company's biggest customer, gave it--and investors--a scare back in June by signing a deal with rival Luminex ($LMNX) to launch a personalized medicine panel. GenMark's shares tanked about 45% on the announcement, and the company scrambled to lower its annual revenue guidance, dropping it about 15% to $30 million thanks to "uncertainties relating to the future revenue contribution from its largest customer," the company said.

That's still good enough for 50% year-over-year growth, though, and CEO Hany Massarany said GenMark is investing in its NexGen sample-to-answer system, looking to expand the use of its diagnostics platform and drive revenue around the globe.

And the diagnostics outfit has come a long way since its last stock sale. In June, GenMark offered 10 million shares to help fund product development, but that was back when the company traded at about $4.20. Now, even after the June slump, the test maker's stock goes for around $10, and GenMark has posted quarter after quarter of revenue jumps, in Q2 pulling in $5.2 million, a 44% leap.

- read GenMark's announcement

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