RedPath Integrated Pathology Secures Over $6.5 Million in Series A Financing
NewSpring Capital, a Philadelphia-area private equity fund family with significant health care investment experience, leads this round, which also includes CID Capital of Columbus, Ohio and other investors. A second close is expected within the next 30 days. RedPath is a national specialty laboratory that provides complex cancer diagnostic testing for pathologists, oncologists and clinicians involved in cancer diagnostics and treatment. RedPath is one of a small but growing field of companies that are translating the information gain from the Human Genome Project into everyday patient care through molecular-based diagnostics.
RedPath Integrated Pathology, Inc. reports that Seneca Health Partners, Inflexion Partners, and HMA Capital Partners have invested in the Pittsburgh-based cancer diagnostics company as part of RedPath's final closing of their Series A round of institutional investment. The three venture capital companies join New Spring Capital and CID Capital who led the first round of investment. In total, RedPath has raised $6.5 million in outside financing within the past three months.
HealthCare Capital Advisors, Tampa, acted as placement agent and financial advisor to the Company. Brian G. Murphy, Partner with New Spring Capital, has stepped in as RedPath's new Chairman of the Board. Other new board members include Peter Kleinhenz, Managing Director of CID Capital, Inc. and Dennis Smith, MD, an anatomic pathology industry expert and former board member of AmeriPath.
Both Mary Del Brady, President & CEO of RedPath and Barbara Handelin, Ph.D. Director of Diagnostics, DNAPrint Pharmaceuticals, remain on the Board.
RedPath Integrated Pathology is a national specialty laboratory that provides complex cancer diagnostic testing for pathologists, oncologists and clinicians. The company plans to use proceeds from the Series A financing round to scale operations to market demand levels and increase sales and marketing activities.
"We are pleased that we were not only able to exceed our financing goal for the Series A round," said Mary Del Brady, President & CEO of RedPath, "but that we were able to attract such seasoned and fully committed investors. Molecular-based diagnostics is a dynamic, rapidly growing industry with tremendous opportunities and challenges in the coming months and years, and our investors are already hard at work helping the company with the development of critical growth strategies."
RedPath's patented PathFinderTG(TM) technology enables an early and definitive diagnosis for difficult cases where cancer is suspected or pre-cancerous conditions exist. The molecular-based analysis supports optimal treatment planning, improves patient outcomes and reduces healthcare costs. Currently, more than 25 major cancer centers use RedPath's proprietary testing.
“This is an exciting time to invest and work with RedPath,” said Brian G. Murphy, Partner with NewSpring Capital. “RedPath’s technology integrates and advances the intersection of pathology, molecular analysis and information sciences. We believe there is tremendous market opportunity for this unique approach to cancer diagnostics.”
We are very pleased to have the backing of NewSpring Capital, CID Capital and our other investors who bring not just financial resources to RedPath, but valuable experience and deep knowledge of our markets,” said Mary Del Brady, President & CEO of RedPath Integrated Pathology, Inc. “Having reached an operating profit after just two years, we know there is enormous pent-up market demand that we will now be able to address with the added capital and assistance.”
For more information, please visit: www.redpathip.com