|NanoString plans to use its IPO proceeds to commercialize the nCounter analyzer and Prosigna test.--Courtesy of NanoString|
Fresh off the launch of its gene-expression cancer diagnostic, Seattle's NanoString is plotting an IPO worth up to $86.3 million, the company disclosed Monday.
NanoString is yet to specify how many shares it plans to offer and at what price, but the company said it will use about $40 million to commercialize and expand its CE marked Prosigna cancer diagnostic and put the rest toward R&D, a scale-up of its sales force and general corporate purposes. The company has applied to list on Nasdaq under "NSTG."
Prosigna is designed to detect the risk of cancer recurrence in post-menopausal women who have hormone-receptor-positive early-stage breast cancer by tracking the PAM50 gene expression signature. The test works with NanoString's nCounter gene expression analyzers.
Last year, NanoString brought in $23 million in revenue and reported a $17.7 million loss. But the company has been gaining traction since launching Prosigna in Europe and Israel in February, last quarter netting revenue of $5.7 million and posting a loss of $7.3 million.
The company's spiking charges stem from the costly process of commercializing Prosigna around the world, and NanoString hauled in $15.3 million in financing in December to fund the test's launch and help carry the company through the U.S. regulatory process.
NanoString has been racking up positive clinical results for Prosigna over the past 12 months, and its latest study of more than 1,400 patient samples will form the basis of a future FDA application, the company said. NanoString's investors include BioMed Ventures, GE's ($GE) Healthymagination Fund and former Genzyme CEO Henri Termeer.
- here's NanoString's announcement
- check out the SEC filing
Editor's note: An earlier version of this story misspelled NanoString's diagnostic test. We regret the error.