AAA RainDance withdraws IPO to weather stock market storm

RainDance withdraws IPO to weather stock market storm

RainDance Technologies, a US-based genomics technology developer backed by industrial product manufacturer General Electric, withdrew its application for an initial public offering yesterday.

The company filed for a $60m IPO in late February this year but cited market conditions for its decision to pull out of the offering.

Life sciences companies have benefited from an 18-month IPO boom but the US markets have experienced a tumultuous few days following ongoing turmoil in the Chinese markets, with the Dow Jones industrial average falling 1,000 points at the start of trading yesterday.

Founded in 2014, RainDance develops and produces systems and assays for the detection and analysis of complex genetic diseases. It formed a co-development and marketing agreement with Pacific Biosciences of California in May to commercialise technology for whole genome assembly.

The company had raised more than $100m in funding, including $16.5m in a 2013 series E round featuring GE Ventures, the corporate venturing unit owned by General Electric.

RainDance’s other investors include Mohr Davidow Ventures, the company’s largest shareholder, with a 34.4% stake, as well as biotechnology company Myriad Genetics, Northgate Capital, Quaker BioVentures, Alloy Ventures and Acadia Woods Partners.

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