Diagenic – drumming up diagnostics cash
Oslo – Norwegian diagnostic specialist DiaGenic ASA has raised NOK70m (EUR 8.5m) through the sale of 140 million shares at NOK0.50 per share in a private placement to new and existing investors. DnB NOR Markets acted as manager for the placement. DiaGenic is also planning a subsequent offering to raise up to NOK30m (EUR 3.7m) through the sale of 60 million shares at NOK0.50 to shareholders who did not participate in the private placement. The purpose of the capital increase is to finance operating costs and secure financial resources to achieve key milestones towards cash-flow break-even, which the company says is expected in the second half of 2012. DiaGenic develops new methods for the early detection of diseases, and calls itself a world leader in analysing gene expression signatures related to disease in clinical samples such as peripheral blood. The Norwegian firm has developed and CE marked two blood-based diagnostic tests: the BCtect for early breast cancer detection and the ADtect for early detection of Alzheimer’s Disease. DiaGenic promotes and markets its products to leading pharmaceutical and imaging companies, as well as clinicians.