Belgian diagnostics outfit MDxHealth ($MDXH) has scored $23.5 million through private placement, selling off about 8.7 million shares to expand its commercial abilities and spread the reach of its prostate cancer test.
Valiance Asset Management and Biovest snatched up the majority of the shares, giving MDxHealth the cash it needs to scale up its CLIA-certified U.S. lab, develop new products and amplify marketing of ConfirmMDx, the company's banner prostate cancer molecular diagnostic test.
"In response to the increasing demand for our ConfirmMDx for prostate cancer test in the U.S., we will expand our commercial efforts by investing in personnel and infrastructure to ensure we are well positioned for new tests emerging from our product pipeline," CEO Jan Groen said in a statement. "We will also use proceeds to further emphasize our global commercialization efforts, offering our cutting-edge products and services to clinical and pharmaceutical customers, with the goal of accelerating and diversifying our revenue base."
The test is used post-biopsy, examining existing tissue samples by running through biomarkers for prostate cancer, confirming results and saving patients from painful and expensive repeat procedures, the company said. In data released earlier this year, MDxHealth found its test to could accurately identify prostate cancer in tissues with 74% sensitivity and a negative predictive value of 91%.
Back in July, the company raised about $12.6 million in equity, money the company put toward launching ConfirmMDx and developing new tests on the same platform, including InformMDx, an assay that determines which cancers require immediate treatment and which can simply be monitored.
- read the announcement