Thursday, October 16, 2008

Predictive Biosciences pulls in $21M in round two

By Mass High Tech Staff

Molecular diagnostics firm Predictive Biosciences Inc. closed on a $21.75 million Series B financing to fund clinical trials for its oncology testing assays. The Lexington-based firm stated it would use the capital to develop its urine-based test that can detect the presence of cancer. The firm plans to launch a multi-center clinical trial for patients with recurring bladder cancer in 2009. A portion of the money will also be used to establish a new independent laboratory.

Existing investors Flybridge Capital Partners and Highland Capital Partners, along with New Enterprise Associates (NEA) and Kaiser Permanente Ventures (a venture capital unit of Kaiser Permanente), backed Predictive Biosciences’ second round of funding. NEA led the round.

In 2006, both Flybridge Capital Partners and Highland Capital Partners participated in the diagnostic firm’s Series A, which raised $10 million.

The company also announced it has appointed M. James Barrett, a general partner with NEA, to its board of directors. Jordan Kramer, senior venture manager at Kaiser Permanente Ventures, was appointed as a board observer.

Predictive Biosciences was founded in 2006 with technology licensed from the Children’s Hospital Boston. Company officials said the startup is focused on validating its protein biomarkers, used to detect cancer, with an eye toward commercializing the technology. The company is developing diagnostic tests in various cancer types including breast, prostate, ovarian and colorectal.