Cancer Genetics, a diagnostics firm focused on developing genomic-based oncology tests, made its initial public offering at a time of rapid growth in the diagnostic testing market.
The Rutherford, N.J.-based company, which is developing tests that target hematological, urogenital and HPV-associated cancers, announced Friday the pricing of its IPO of 600,000 shares of common stock at $10 per share. The offering is expected to close April 10.
“We believe our ability to rapidly translate research insights about the genetics and molecular mechanisms of cancer into the clinical setting will improve patient treatment and management and that this approach will become a key component in the standard of care for personalized cancer treatment,” Cancer Genetics said a securities filing.
Both payers and providers have said that using diagnostic testing in cancer treatment and prevention may improve outcomes and reduce broader healthcare costs.
However, there are still questions about the impact of high-cost treatments that have been recently approved by the Food and Drug Administration as well as concerns about the quality and correct utilization of certain diagnostic tests.