Crescendo Bioscience Secures $56 Million
Crescendo Bioscience, a molecular diagnostics company developing quantitative biomarker tests for rheumatoid arthritis (RA) and other inflammatory diseases, recently announced it has completed a $31 million Series C equity financing and entered into a strategic investment agreement with Myriad Genetics for $25 million, raising a total of $56 million.
The $25 million investment by Myriad Genetics is non-dilutive capital that is structured as long term debt and is accompanied by a 3-year option to acquire Crescendo Bioscience for cash at a predetermined multiple of revenue based on the growth rate of Crescendo Bioscience at the time of option exercise. The option allows Crescendo Bioscience to continue to operate independently and may be exercised after Crescendo Bioscience attains a minimum revenue milestone.
Crescendo Bioscience is a leader in the development of molecular diagnostic tests for patients suffering from inflammatory autoimmune disorders, with its first products focused in rheumatoid arthritis. The company is committed to providing personalized diagnostic, prognostic, therapy selection, and monitoring tools for physicians to improve patient outcomes. Crescendo Bioscience’s initial product, Vectra DA, is the first blood-based molecular diagnostic test available that can determine the level of disease activity in patients with rheumatoid arthritis.
“This $56 million in funding exceeds our financing goals and is further validation of the unique market opportunity we are pursuing, the strength of our business model, and our early progress in penetrating this market,” said William A. Hagstrom, Chief Executive Officer, Crescendo Bioscience. “This funding will help us accelerate the commercialization of Vectra DA and expand our pipeline of molecular diagnostic products for rheumatoid arthritis and other inflammatory diseases.”
“As part of our focus on investing for future growth, we have identified Crescendo Bioscience as a franchise with strong potential; one that we believe will transform the management of chronic inflammatory diseases,” added Pete Meldrum, President and Chief Executive Officer of Myriad Genetics.
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