RainDance Technologies convinced Myriad Genetics ($MYGN) to join its new $20 million Series E financing round, money that will fuel a commercial and manufacturing expansion for its next-generation gene-sequencing tools designed to boost diagnostics capacity for various diseases.
Myriad's decision to become a strategic equity investor comes about a week after Myriad and RainDance announced their multi-year deal to use key RainDance technology for Myriad's next-generation gene-sequencing test for hereditary cancer. Myriad, of course, has been in the news in recent weeks as the focal point of a case now before the U.S. Supreme Court that will determine whether it can patent two cancer-related genes connected to a diagnostic designed to determine a women's risk of developing breast cancer.
But Myriad is far from the only investor at the table. All of RainDance's previous VC investors also participated in the round: Mohr Davidow Ventures, Quaker BioVentures, Alloy Ventures, Acadia Woods and Sectoral Asset Management. RainDance most recently raised $37.5 million in a Series D round back in early 2011.
RainDance plans to use the extra money to fuel global expansion for its ThunderStorm next-generation gene sequencing system (which is also part of its deal with Myriad), and its RainDrop system, newly-launched tech designed to help detect circulating nucleic acids. But there's also a physical expansion in mind. The company said it will boost its commercial and manufacturing capacity and also move to a new facility by mid-year.
Company President and CEO Roopom Banerjee said in a statement that the new money "will carry the company through several value inflection milestones in the coming year."
- read the release
- here's the Myriad/RainDance deal announcement