CareDx, a US-based developer of diagnostics technology for heart transplant patients that counts semiconductor maker Intel among its investors, has raised $40m from its initial public offering.
The company issued four million shares priced at $10 each, below the $15 to $17 range it set earlier this week.
CareDx’s lead product AlloMap is a non-invasive blood test which enables doctors to discover if a heart transplant is being rejected by a patient. It is exploring whether the technology can also be used for kidney transplant patients.
The company will use $19.7m of the proceeds to fund research and development and expand its product pipeline, while the remainder will go towards sales and marketing activities and commercialisation.
Intel Capital, the corporate venturing arm of Intel, held a stake of 8.9%, which has been diluted to 5.4% post-IPO. Kleiner Perkins Caufield & Byers’ stake has been diluted to 9.1%,TPG Biotechnology’s to 8.8%, Sprout Capital’s to 5.9%, Burrill & Company’s to 5% and DAG Ventures’ to 3.9%.
CareDx had raised $84.4m in equity funding and $8.2m in debt financing since 2003. It filed for an $86m IPO in 2007, but withdrew it the following year due to unfavourable market conditions.
Piper Jaffray and Leerink Partners served as joint book-running managers. Raymond James & Associates and Mizuho Securities USA served as co-managers.