Nanosphere, Inc. Closes $57 Million Financing
Bain Capital leads investment to fund commercial launch of innovative nanotechnology-based proteomic and genomic diagnostic platform
NORTHBROOK, Ill.—May 16, 2006—Nanosphere, Inc., a nanotechnology-based molecular diagnostics company founded upon technology discovered at Northwestern University, today announced that the company has closed $57 million in a Series D financing, led by Bain Capital LLC. The company will use the proceeds to commercialize the Verigene® System™, a platform for user-friendly, cost-effective direct genomic testing that eliminates the need for Polymerase Chain Reaction (PCR), and to continue development and commercialization of its proprietary Biobarcode™ technology for ultra-sensitive detection of proteins and nucleic acids. The investment from Bain Capital LLC was comprised of funds from Bain Capital Ventures and Brookside Capital. Other investors in the round include Allen & Company and founding investor Lurie Investments.
Nanosphere is redefining molecular diagnostics with a revolutionary nanotechnology-based platform, the Verigene® System, which will enable earlier detection and treatment of disease. The company's ultra-sensitive protein detection and direct genomic-testing technologies permit the development of new biomarkers—early molecular indicators of disease—and the measurement of existing markers at concentrations undetectable by today's technologies. Nanosphere's technology enables the creation of new or better medical diagnostics and streamlines the diagnosis and monitoring of diseases.
"We are very pleased to have Bain Capital LLC and Allen & Company as new partners in the strategic development of our company and the commercialization of our proprietary technology, which we believe will have a significant impact on the diagnosis and treatment of many critical diseases," said William Moffitt, CEO of Nanosphere, Inc. "The science behind Nanosphere is
undeniably among the strongest in nanotechnology and molecular diagnostics today.
Commercialization is the next step for our company. We've validated our core technology and delivered early versions to customers, and now we're focused on clinical trials in preparation for an anticipated commercial launch later this year. This funding will help ensure our ability to launch the Verigene® System and to develop additional opportunities for commercialization." With the closing of this latest round, James Nahirny and Jeffrey Crisan from Bain Capital were
added to the Board. "We welcome James and Jeff to the Board of Directors," said Mark Slezak of Lurie Investments, "and look forward to the significant contributions they will bring as we continue to build shareholder value."
James Nahirny, managing director at Bain Capital Ventures, said: "Nanosphere offers the most promising nanotechnology we see today to enable fundamentally new medical tests. It has been put through its paces by early users at leading laboratories, and now Nanosphere is preparing for regulatory review. When commercialized, the technology promises to make possible earlier
detection of certain cancers, neurological disorders and other conditions, and has the potential to address a tremendous market opportunity."
The Verigene® System is comprised of two core technologies. Nanosphere's Biobarcode technology enables the ultra-sensitive measurement of protein biomarkers as well as nucleic acids. This offers the potential to advance the diagnosis of and development of treatments for cancer, cardiovascular and neurological disorders, infectious diseases, as well as biowarfare
agents. Nanosphere's direct genomic detection technology simplifies genetic testing to eliminate the need for sophisticated labor, cost-prohibitive instrumentation, and dedicated lab space. It will enable broader access to genetic testing technology, therefore decentralizing molecular testing from a few sophisticated academic laboratories to the point of care.
About Nanosphere, Inc.
Nanosphere is redefining molecular diagnostics with a nanotechnology-based platform that will enable earlier detection and treatment of disease. The company's ultra-sensitive protein detection and direct genomic testing technologies permit the development of new biomarkers and measurement of existing biomarkers at concentrations undetectable by today's diagnostic
technologies. The Verigene® System's simplicity, ease of use and low cost allow customers to perform molecular diagnostic testing in virtually any setting. Nanosphere is privately held and based in Northbrook, Ill. Additional information is available at www.nanosphere.us.