NewSpring Capital has sold its stake in RedPath to PDI. No financial terms were disclosed. Based in Pittsburgh, RedPath is a molecular diagnostics lab.
RADNOR, PA – November 10, 2014 – NewSpring Capital is pleased to announce that it has successfully exited RedPath Integrated Pathology, Inc. (“RedPath”), a portfolio company of its dedicated healthcare fund, NewSpring Health Capital (“NewSpring”). The exit was a result of a sale to PDI, Inc. (“PDI”, Nasdaq:PDII) with the RedPath asset operating under PDI’s molecular diagnostics division, Interpace Diagnostics.
Since NewSpring’s initial investment, RedPath has been able to effectively expand upon its leading position in the molecular diagnostics market for gastrointestinal (“GI”) tract diseases. The Company has made strides in developing multiple tests based on PathFinderTG®, a platform that enables physicians to better resolve complex cancer diagnostic dilemmas in at risk patients. RedPath also developed a world class scientific and medical team that includes RedPath founder, Sydney Finkelstein, M.D. which has resulted in a strong pipeline of tests targeting GI tract diseases. As a result, the Company was able to grow from concept to over 4,000 clinical tests performed annually with Medicare and various private payors reimbursing the test.
“PDI’s deep go-to market expertise and commercialization infrastructure can deliver the resources needed for the development and promotion of this innovative technology,” said Dennis Smith, M.D., President and CEO, RedPath Integrated Pathology. “Becoming part of Interpace Diagnostics will enable the realization of PathFinderTG®’s full potential while complementing the Company’s growing molecular diagnostics capabilities.”
“We are extremely pleased to have been a part of the success at RedPath. In PDI’s hands, the PathFinderTG® platform will have the opportunity to achieve broad adoption by the physician community to the benefit of patients,” said Brian G. Murphy, NewSpring General Partner and former Chairman of the Board at RedPath. “Working with passionate scientists and business leaders at RedPath has demonstrated how early stage diagnostic concepts can mature into cutting edge clinical applications. I know that RedPath will continue on its strong growth trajectory and be an excellent addition to PDI and Interpace Diagnostics.”
RedPath Integrated Pathology is a Pittsburgh-based molecular diagnostics laboratory focused on providing novel solutions for their clients. RedPath is committed to offering cutting edge molecular diagnostic services to support gastroenterologists, pathologists and other clinicians by improving the clinical management of patients through the use of PathFinderTG®, a patented mutational platform that helps physicians better resolve diagnostic dilemmas in at risk patients. RedPath performs all clinical testing and R&D at their state-of-the-art, CLIA-certified and CAP accredited laboratory. For more information about RedPath, please visit www.redpathip.com.
PDI is a leading healthcare commercialization company providing superior go-to-market strategy and execution to established and emerging healthcare companies through its three core business units. The Company’s Sales Services business unit (CSO) is a leading provider of outsourced pharmaceutical, medical device and diagnostics sales teams. PDI’s Product Commercialization Services, including Interpace Diagnostics, provides full product commercialization and is working to develop and commercialize molecular diagnostic tests leveraging the latest technology and personalized medicine for better patient diagnosis and management. Its Marketing Services division is a pioneer in insight-driven digital communication services and integrated multichannel message delivery. For more information about PDI, Inc. or Interpace Diagnostics, please visit www.pdi-inc.com and www.interpacediagnostics.com.