NextGxDx said Wednesday that it has received an undisclosed amount of Series B funding. Voyent Partners led the round with participation from the Nashville Capital Network. In conjunction with the funding, NextGxDx has named the following to its board of directors: Patrick J. Balthrop Sr., president and CEO of Luminex Corp; Phil Hertik, former founder, chairman and CEO of Windsor Health Group; Jim Kever, principal at Voyent Partners; George Lazenby, former CEO of Emdeon; and G. Walter Loewenbaum II, chairman of Luminex Corp. and 3D Systems Corp. NextGxDx is an online genetic testing marketplace.
NASHVILLE, Tenn., March 5, 2014 /PRNewswire/ — NextGxDx Inc., which provides an online genetic testing marketplace for healthcare professionals and hospitals, today announced the successful closing of the company’s Series B round of financing, which was led by Voyent Partners and joined by the Nashville Capital Network. With the new investment, the company has expanded its board of directors to include new members Patrick J. Balthrop Sr., President and CEO of Luminex Corporation; Phil Hertik, former founder, chairman and CEO of Windsor Health Group; Jim Kever, principal at Voyent Partners; George Lazenby, former CEO of Emdeon; and G. Walter Loewenbaum II, chairman of Luminex Corp. and 3D Systems Corp.
NextGxDx will use the financing round to fund the company’s growth into the hospital market. Financial terms of the deal were not disclosed, but Trey Noel, CFO of NextGxDx, did elaborate, “In our pursuit of investment capital, we hit the trifecta. Our investors have long-term financial bandwidth, keen strategic insight due to their relevant experience, and the patience to support the evolution of our company.”
“The growth of genetic testing is overwhelming hospital budgets and their ability to manage the labor-intensive test ordering process, creating an opportunity for a solution like ours that lowers costs and addresses the workflow inefficiencies associated with genetic test ordering,” said Mark Harris, Ph.D., CEO of NextGxDx. “We are excited about the opportunities we see in this market, and we are grateful to have the support and expertise of this talented team of board members as we move forward.”
Balthrop has served as the president and chief executive officer of Luminex Corp., a developer and manufacturer of life science products, with a market-leading position in DNA based testing products used by clinical laboratories worldwide, since 2004. Prior to Luminex, Balthrop served as president of Fisher Healthcare and spent more than 20 years in various leadership roles with Abbot Laboratories.
Hertik is the former founder, chairman and CEO of Windsor Health Group, a holding company for healthcare acquisitions, which he launched in 2000 and sold in 2010. Windsor developed Windsor Medicare Extra, a leading regional Medicare Advantage plan. In the mid-1990s he served as an independent consultant and investor in healthcare companies, and led Coventry Corp., a publicly traded regional managed care and insurance organization.
Kever has been a principal in Voyent Partners, a venture capital firm, since 2001. He is also a director of Luminex Corp. and Tyson Foods, Inc., an integrated processor of food products. He previously served as a director of Emdeon Business Services LLC and EBS Master, a provider of healthcare revenue and payment cycle solutions, and Transaction Systems Architects, Inc., a supplier of electronic payment software products and network integration solutions.
Lazenby most recently served as chief executive officer of Emdeon and was a member of its board of directors since September 2008. Mr. Lazenby is currently a senior advisor for Emdeon’s majority investor, Blackstone Capital Partners, advising the firm on current and future healthcare technology and services investments.
Loewenbaum has been the chairman of Luminex Corp. since 2002 and 3D Systems Corp. since 1999. He has been a director of Luminex since 1995. Mr. Loewenbaum also has served as chairman of the board of directors of 3D Systems since 1999, and was previously chairman of the board of directors of Envoy.
The new members join current board members Harris and James Lackey, chairman and CEO of Complete Holdings Group. Kever will serve as the new Chairman.
“Mark and his team have developed the solutions necessary to help clinicians find the right test, hospitals mitigate reimbursement risk, and payers gain transparency into genetic testing products and develop better informed reimbursement guidelines,” Kever said. “We are excited to support such an important effort to reduce healthcare costs.”
NextGxDx provides an online genetic testing marketplace that offers healthcare professionals and hospitals the ability to access up-to-date listings of all genetic tests from CLIA-certified laboratories, view pertinent information about each test, order tests online, and manage results electronically within the HIPAA-compliant portal. By providing clinicians with a one-stop-shop to search, compare and order genetic tests, NextGxDx reduces the time and costs associated with the ordering of genetic tests. For more information, visit www.NextGxDx.com.
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