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September 22, 2014

Exagen Diagnostics Files for IPO

Exagen Diagnostics Inc. has filed its S-1 form with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). No terms were given for the offering, but it has the potential to raise up to $69 million. The company plans to list on the Nasdaq Global Market under the symbol of EXDX. The underwriters for this initial offering are Leerink Partners, William Blair and Baird.

The company works in commercial-stage diagnostics and looks to address the accurate diagnosis and monitoring of patients affected by autoimmune rheumatic diseases (ARDs).

Exagen markets four products under its Avise brand to provide treatment for ARDs. In 2013 the company processed approximately 9,300 patient specimens for its lead diagnostic product line, Avise SLE, and approximately 11,100 in the first six months of 2014.

Differential diagnosis of these diseases is critically important because earlier diagnosis has been shown to improve patient outcomes. Once diagnosed, physicians can tailor therapy to a patient’s specific disease and avoid the “trial and error” approach that often takes place when a definitive diagnosis cannot be made.

ARDs are a group of approximately 30 chronic disorders that create a significant burden on the health care system. These chronic diseases can cause lifelong inflammation in the joints, tissues and internal organs, resulting in serious complications, such as irreversible organ damage. Untreated chronic inflammation can also lead to premature hardening of the arteries, heart attacks and strokes. It is estimated that 11 million patients in the United States suffer from ARDs.

The company plans on using the proceeds for research and development as well as expanding its salesforce. It does not plan to issue a dividend.