CardioDx Pockets $58M, Right After Medicare OK
CardioDx persuaded the folks who work for Medicare that its molecular diagnostic test is a worthwhile medical advance, and now it has persuaded investors to put some more money to work into making it a commercial success.
The Palo Alto, CA-based company said today it has completed a two-part equity financing worth $58 million. The financing included Temasek, an Asia investment company based in Singapore; and all of its previous investors, including Longitude Capital, Artiman Ventures, Kleiner Perkins Caufield & Byers, J.P. Morgan, Mohr Davidow Ventures, TPG Biotech, Intel Capital, Acadia Woods Partners, Bright Capital, Pappas Ventures, DAG Ventures, Asset Management Group, and GE Capital. The company said it had raised $60 million in May 2011.
The CardioDx test is attempting to carve out a new market with molecular diagnostics for heart disease. The company’s Corus CAD test takes a blood sample from a patient, analyzes the extent to which RNA from 23 genes is expressed in the blood, and says in 72 hours whether a patient is at low risk of coronary artery disease. By using this kind of test in non-emergency situations, CardioDx is hoping to help patients and doctors avoid some of the costly and invasive procedures currently used to see whether chest pain is a serious cause for alarm.
The CardioDx test has been on the market for three years, at a list price of $1,195, but has seen limited adoption by physicians so far. But that could change soon. CardioDx put itself in position to grow earlier this month, as Medicare, the federal health insurance program for the elderly, agreed to pay for the test.