Assurex Health Secures $32 Million in Financing to Support Continued Growth – Assurex Health
Assurex Health Secures $32 Million in Financing to Support Continued Growth
Personalized Medicine Company Expands Commercial Activities in Neuropsychiatric Pharmacogenomics
MASON, OH – May 21, 2014. Assurex Health, a personalized medicine company that provides clinically-relevant individualized genetic information to help physicians select the right medication for patients with depression, anxiety, chronic pain, ADHD and other neuropsychiatric disorders, today announced that it has secured a $25 million Term and Revolving Credit Facility to support increasing clinical adoption of its GeneSight® products. GE Capital, Healthcare Financial Services, acting as Agent, and Silicon Valley Bank financed the credit facility. Existing investors, including funds managed by Sequoia Capital, Claremont Creek Ventures, Mayo Clinic, Cincinnati Children’s Hospital Medical Center, CincyTech, Allos Ventures, Four Rivers Partners, Danmar Capital, and jVen Capital, provided an additional $7 million to complete the $32 million financing. The new financing will help Assurex Health continue building the leading neuropsychiatric personalized medicine company.
“We are delighted to have GE Capital lead this financing. Together with continuing financial support from Silicon Valley Bank, we have great partners to help support the rapid growth of Assurex Health,” said James S. Burns, Chief Executive Officer of Assurex Health. “Our mission is to help clinicians improve the treatment outcomes of patients. We are committed to being the leader in neuropsychiatric pharmacogenomics and will continue adding proven genetic variants and new medications to enhance our GeneSight products. With the additional funding this facility provides, we can continue to support our growth trajectory.”
According to the Center for Disease Control (CDC), an estimated 25 percent of U.S. adults have a mental illness and nearly half will develop at least one during their lifetime. The effects of these illnesses range from daily living disruptions to incapacitating personal, social and occupational impairments and premature death. CDC estimates that these illnesses cost the U.S. economy at least $300 billion per year.
“Our combination of healthcare knowledge and structuring expertise means our customers have access to the capital they need to fund growth and other strategic initiatives,” said Neil Bonanno, senior vice president of Life Sciences for GE Capital, Healthcare Financial Services. “We are pleased to support Assurex Health during this exciting time in the company’s commercial growth.”
Assurex Health has four products powered by GeneSight combinatorial pharmacogenomic technology. Earlier this month, the company announced major upgrades to two of them: the Psychotropic (assurexhealth.com/pr_psychotropic) and Analgesic tests (assurexhealth.com/pr_analgesic). GeneSight Psychotropic provides individualized treatment information about patient response to 38 antidepressant and antipsychotic medications. GeneSight Analgesic provides clinicians with a genetic-based tool to help evaluate medication responses for patients with acute or chronic pain to 22 medications in four drug classes: opioids, NSAIDs, muscle relaxants, and opioid dependency. GeneSight ADHD provides information about patient response to ADHD medications, including stimulant and non-stimulant medications. Finally, GeneSight MTHFR helps determine if additional folic acid supplementation may be necessary. GeneSight results are available 36 hours after Assurex Health receives a patient’s cheek swab sample and are provided in an easy-to-read, actionable composite report for healthcare providers to quickly determine which medications are genetically appropriate for an individual patient.
GeneSight efficacy and economic utility are validated in four published peer-reviewed clinical studies, which document that patients being treated for depression are greater than two times more likely to respond when physicians use GeneSight to guide their treatment. More than 8,000 healthcare practitioners have used GeneSight to guide treatment decisions for their patients. Many commercial and government insurance plans reimburse all or part of the cost of GeneSight. Assurex Health also offers financial assistance programs for patients who qualify.
About Assurex Health
Assurex Health is a personalized medicine company dedicated to helping clinicians determine the right medication for individual patients with neuropsychiatric and other medical conditions. Assurex Health’s proprietary technology is based on pharmacogenomics – the study of the genetic factors that influence an individual’s response to medication treatments – as well as evidence-based medicine and clinical pharmacology. The company was founded to commercialize industry-leading personalized medicine technology for neuropsychiatric disorders. Assurex Health has licensed patented technology from Mayo Clinic and Cincinnati Children’s Hospital Medical Center. For more information about Assurex Health, please visit www.assurexhealth.com.
About GE Capital, Healthcare Financial Services
GE Capital, Healthcare Financial Services, with in-depth industry knowledge and expertise, has provided more than $60 billion in financing over 10 years to companies in over 45 healthcare sectors including senior housing, hospitals, medical offices, outpatient services, diagnostics, pharmaceuticals, and medical devices. GE Capital’s team of professionals creates business and financial solutions tailored to meet the individual needs of its customers. For more information, visit gecapital.com/healthcare.
About Silicon Valley Bank
Silicon Valley Bank (SVB) is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 28 U.S. offices and six international operations. (NASDAQ: SIVB) For more information, visit www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.