ProLungDX seeks funds for cancer test; sees eventual IPO – CEO
ProLungDX, a maker of lung cancer detection devices, is looking to raise USD 5.25m from high net worth investors for US commercial development in advance of an expected initial public offering or trade sale, according to CEO Steven Eror.
The Salt Lake City, Utah-based privately held company, which is conducting US clinical trials for its EPN Scan lung cancer screening device, expects to gain FDA approval next year. The device is already marketed in Europe, having received a CE mark in 2013.
The company, also known as Fresh Medical Laboratories, is already “IPO ready,” said the executive, having reported financial statements for three years. The public reporting began as a result of a potential PIPE deal that never occurred in 2012.
Eror said the current fundraising values the company at USD 30m. Proceeds of the fundraising will be used to continue US clinical trials for the device and to hire a sales force for outreach to hospitals and pulmonary specialists.
The current standard for lung cancer diagnosis is CT screening, which is conducted for several years to determine if a lung abnormality is cancerous. ProLungDX says its non-invasive EPN Scan can determine immediately with a 90% accuracy rate whether an abnormality is cancerous so that potentially lifesaving treatment can be undertaken sooner.
The device “replaces months and years of CT follow-up,” the company said in investor materials.
Eror said the company’s end-goal is a dual IPO and sale process in coming years. The executive said ProLungDx is already in talks with major companies that could buy it which he declined to name. But he said large players that could be interested include Medtronic(NYSE:MDT) and Johnson & Johnson (NYSE:JNJ). In addition, the company is “being courted” by NASDAQ for a potential listing.
“We want a public valuation,” said Eror. The company expects to list publicly within two years, and it has not yet hired financial advisers for the potential IPO or sale.
by Dane Hamilton