August 5, 2009
Investor, Bristol-Myers Squibb Company Invests $14.4 Million for Series G Funding for Diagnostic Company, XDx
Based in Brisbane, California, molecular diagnostic company, XDx announced today that it has completed a $14.4 million series G funding which was led by Bristol-Myers Squibb Company. Other investors who participated in this funding include Burrill Venture Capital, Intel Capital, Duff Ackerman & Googdrich, Integral Capital Partners, KPCB, Sproutgroup, New Leaf Ventures, and TPG Biotechnology.
XDx is a molecular diagnostic company that develops and commercializes noninvasive diagnostic testing for all kinds of different biological disorders. The specialty products that XDx develops are mainly for the treatment and monitoring of organ transplant rejection and autoimmune diseases. The one product that XDx is currently developing is a diagnostic process that can monitor the immune system activity by observing genetic activity. This type of testing will be done by XDxâ€™s new flagship platform, the AlloMap Molecular Expression Testing. This new platform already provides physicians who are in the transplant sector of the medical field with a new tool in monitoring the immune system of transplant patients and be able to accurately observe immune activity to identify acute cellular rejection in heart transplants.
Heart transplant medicine, however, might not be the only problem that XDxâ€™s AlloMap Molecular Expression Testing might be of use. This testing system can also be used in other organ rejections involving the immune system at the molecular and cellular level. XDx currently has other tests going on involving the AlloMpap technology. One of the other tests that XDx is conducting is in the IMAGE, or the Invasive Monitoring Attenuation through Gene Expression, from which XDx anticipates to have results soon.
According to the chairman of XDxâ€™s board of directors and partner at KPCB, Brook H. Byers, the interest of investors in XDxâ€™s technology by many venture capitalists is because XDx stands out from other companies that are involved in biopharmaceuticals. The main thing that is attracting such a large number of investors to XDx is because of the success of its AlloMap proprietary technology and the positive impact from clinical trials with heart transplant patients. Furthermore, Mr. Byers added that this current round of funding shows the confidence that KPCB has in XDx and that the companyâ€™s technology would be able to expand into other organ transplant testing as well as in autoimmune diseases.
Other information that makes XDx attractive to investors is that in August of 2008, the company has received clearance from the FDA in the United States for its AlloMap Molecular Expression Testing, which is an in-vitro diagnostic multivariate index assay or IVDMIA. This is a testing service that is performed in a laboratory and assesses the gene expression profile of RNA that is separated from the mononuclear blood cells. The AlloMap testing system currently is intended for heart transplant patients that have a low probability for organ rejection at the time of testing.
According to Dr. Jeremy Levin, MD, PhD, senior vice president of the Strategic Transaction Group of Bristol-Myers Squibb Company, the team at Bristol-Myers Squibb is very pleased at the progress that XDx is making with its gene expression diagnostic testing. Furthermore, the team at Bristol-Myers Squibb is looking forward to be working together with XDx on its new testing system to treat Systemic Lupus Erythematosus, or SLE. SLE is an autoimmune disorder that affects roughly 300,000 people in the United States and the treatment for this disease is rather complicated due to the recurrence of disease flares that can range in severity and often require the patient to be hospitalized and eventually lead to more serious problems such as kidney and other organ failure.
According to the president and CEO of XDx, Pierre Cassigneul, this round of funding is very important for XDx because it helps the company create a financial long term strategy for business success. Mr. Cassigeul further added that both he and the company are very happy that Bristol-Myers Squibb and the companyâ€™s other existing investors are continuing to back XDx.
Based in New York City, Bristol-Myers Squibb is a large medical firm that has the motto of â€œHelping patients prevail in their fight against serious disease.â€ Bristol Myers Squibb has been a leader in the big pharmaceuticals industry throughout the United States and has developed medicines for the effective treatment of cancer and HIV/AIDS along with other diseases.
For more information about XDx, click here.