Nanosphere (Northbrook, Illinois) reported that it has priced its previously disclosed initial public offering of 7 million shares at between $14 and $16, to raise proceeds of $95 million if the shares price at the midpoint of the offering.

The company, which makes a genetic testing system and is developing diagnostic tests for a variety of medical conditions, including cancer, cardiovascular and neurodegenerative diseases, first filed for its IPO back in August (Medical Device Daily, Aug. 15, 2007)

The company, which will list its shares on the Nasdaq Global Market under the symbol NSPH, will offer its underwriters an option to purchase an additional 1.05 million shares to cover any over-allotments.

TTThe company said it plans to use about $50 million of the net proceeds to finance ongoing research and development in connection with the development of additional genomic and protein tests and the next-generation Verigene system, and the continued investments in and development of its product manufacturing infrastructure, including purchasing manufacturing equipment, tooling and facilities leasehold improvements, as well as increased manufacturing personnel. It said it will use about $40 million to fund additional sales, marketing and service personnel and marketing initiatives in connection with future test and system product launches The remainder will be used for additional working capital and other general corporate purposes, such as business development, financial and administrative support services, the employment of additional personnel and the costs of operating as a public company.

The company received FDA clearance for the Verigene system, a random access, molecular diagnostics workstation for nucleic acid and protein diagnostics, in September (MDD, Sept. 20, 2007). The company also reported FDA clearance of the Verigene system’s first test to determine an individual’s ability to metabolize the anti-coagulant medication warfarin, information critical to determining safe and appropriate dosing.

Verigene uses gold nanoparticle technology to detect nucleic acid targets in a multiplex format. The system is comprised of two core instruments, the Verigene Reader and the Verigene Processor, and a single use disposable test cartridge. The company designed the Verigene system to allow for the simultaneous detection of multiple genetic targets in the same Verigene Test Cartridge format.

Founded nine years ago, Nanosphere said it has raised more than $100 million in private money, including a $57 million venture capital investment last year from a group led by Boston-based Bain Capital (MDD, May 24, 2006). Chicago-based Lurie Investments, Nanosphere’s founding investor, is a major shareholder in the company.

The company has incurred significant losses in each fiscal year since its inception, including net losses attributable to common stock of $18.8 million, $45.7 million, and $18.9 million in the years ended Dec. 31, 2005 and 2006, and the six month period ended June 30, 2007, respectively. As of June 30, the company had an accumulated deficit during the development stage of $124.8 million.

Underwriters for Nanosphere’s planned IPO are Credit Suisse, Piper Jaffray, Leerink Swann, and Allen & Co.

Genoptix (Carlsbad, California), a provider of specialized laboratory and diagnostic services for community-based hematologists and oncologists, reported pricing its 5.75 million IPO shares at $14 to $16.

In the offering, which the company first disclosed in August (MDD, Aug. 3, 2007), the company is selling 4,285,714 shares of common stock and selling stockholders are selling the remaining 714,286 shares for which the company will not receive any proceeds.

Genoptix, whose common stock has been approved for listing on the Nasdaq Global Market under the symbol GXDX, expects to raise about $57.7 million, based upon its $15 per share mid-point offering price, after expenses. If the underwriters fully exercise their option to purchase additional shares, the company estimated that its net proceeds will be about $64 million.

The company said it intends to use about $8 million to $12 million of the net proceeds from the offering to increase its personnel; about $15 million to $25 million to establish a second laboratory facility; up to about $5 million o to expand its backup systems; about $2 million to repay all outstanding indebtedness under its loan agreement; and about $20 million to pursue new collaborations, acquisitions or in-licenses of products, services, businesses or technologies.

The company provides services to help hematologists and oncologists diagnose, make treatment decisions and monitor the effectiveness of treatments in cancer patients. Those services generated $24 million in revenues in 2006 and $10.7 million just in the first quarter of 2007.

The company’s offerings center on Compass, a package that allows the company’s hematopathologists to evaluate a sample, determine the appropriate tests, and deliver a report back to the physician. Compass includes a histopathology analysis to determine the nature and extent of the disease, six-color flow cytometry to characterize and measure cells, cytogenetics tests to reveal chromosomal abnormalities, polymerase chain reaction to follow progression of the disease and response to therapy, and circulating tumor cell tests for metatstatic breast cancer patients.

Lehman Brothers, Banc of America Securities and Cowen and Co. are underwriting the offering.