NanoString craves $54M in scaled-back IPO

NanoString plans to use its IPO proceeds to commercialize the nCounter analyzer and Prosigna test.--Courtesy of NanoString

Investor excitement over NanoString's breast cancer diagnostic may not be as hot as the company first figured, and the Seattle outfit has dialed back its share price as it winds up for a $54 million IPO.

Last month, NanoString sought up to $86.3 million in its initial SEC filing, planning to spend $40 million of the haul to help commercialize its CE marked Prosigna cancer diagnostic and put the rest of the cash toward R&D and general expenses.

Now, NanoString is offering 5.4 million shares at $10 apiece, cutting its price range by as much as 33% as it applies to list on Nasdaq under "NSTG."

In 2012, NanoString reported $23 million in revenue and took a $17.7 million loss. But the company has been moving in the right direction since launching Prosigna in Europe and Israel in February, last quarter pulling in revenue of $5.7 million and posting a loss of $7.3 million.

NanoString raised $15.3 million in financing in December to fund the test's international launch and help carry the company through the U.S. regulatory process, including a 1,400-patient study that will form the basis of a future FDA application.

The test is designed to detect the risk of cancer recurrence in post-menopausal women who have hormone-receptor-positive early-stage breast cancer, using NanoString's nCounter gene expression analyzers to track the PAM50 signature.

- read NanoString's announcement

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