NovaQuest Capital Management closed an investment in InformedDNA, a provider of genetics services. NovaQuest partnered with TripleTree Capital Partners and Frist Cressy Ventures. InformedDNA will use the capital to continue scaling its tech-enabled, genetics services and expand its staff of counselors. Terms of the deal were not disclosed.
NovaQuest Capital Management, L.L.C. (“NovaQuest”), a healthcare and life sciences focused private investment firm, today announced the successful close of an investment in InformedDNA, the nation’s largest provider of genetics services. NovaQuest partnered with TripleTree Capital Partners (“TTCP”) and Frist Cressy Ventures (“FCV”) to make a meaningful growth capital investment into the company. InformedDNA will use the capital to continue scaling its technology-enabled, genetics expert services, as well as to expand its staff of genetic counselors. Terms of the private transaction were not disclosed. InformedDNA will continue to be led by the current management team under the direction of Chief Executive Officer, David Nixon.
“We are thrilled to work with NovaQuest, TTCP and FCV as we bring more clarity and expertise to the increasingly complex genetics space,” said Nixon. “Nearly a third of all genetic tests are ordered in error, negatively impacting patients, payers and providers. This investment will allow our organization to bring its technology-enabled genetic expertise to the people and companies that need it most to help enable better decision-making, improve outcomes, and lower costs.”
As the genetic market continues to expand with hundreds of new tests introduced monthly, providers lack the specialized expertise to select and interpret tests, which can quickly lead to unnecessary costs for patients and payers. As the largest genetic expert services organization in the United States, employing more than 85 genetic counselors, InformedDNA offers services that guide providers’ clinical decisions, help shape clinical trial processes and enable insurers to understand and craft policies to guide ordering genetic tests in a cost-effective manner.
“Genomics is growing at an exponential rate across nearly all sectors in healthcare. InformedDNA brings a high caliber of resources and understanding to the table to not just keep up with, but to stay ahead of, industry growth,” said Vern Davenport, Partner at NovaQuest. “This new partnership will help further decode the business of genetics and bring valuable insights to a wider range of patients and organizations.”
“Healthcare is at an important inflection point, with new genetic testing capabilities promising more personalized care, improved outcomes, and lower costs,” said Conor Green, Partner at TTCP. “InformedDNA’s continued commitment to genetic excellence and expertise has helped many healthcare organizations better understand the genomic space. We are excited to work with such an experienced genetics-focused organization to continue to provide rare expertise to the healthcare industry.”
InformedDNA has seen rapid growth and development in recent years, experiencing over 50 percent annual growth in each of the last two years and doubling its genetic counseling staff since 2017. Founded in 2007, InformedDNA was the first company in the United States to use telephonic services to connect genetic counselors to patients. Since then, it has expanded to provide technology-led services to patients, health plans, providers, health systems, and pharmaceutical and life science organizations.
Baird served as exclusive financial advisor to InformedDNA while Foley & Lardner provided legal advice to the company. Bass, Berry & Sims provided legal advice to NovaQuest, TTCP, and FCV.
In a related transaction, CIBC also provided a flexible credit facility to InformedDNA.
InformedDNA is the authority on the appropriate use of genetic testing. It leverages the expertise of the largest full-time staff of independent, board-certified genetics specialists in the United States to help ensure health plans, hospitals, employers, clinicians and patients all have access to the highest quality genetic services. Key offerings include clinical genetic counseling, genetic testing utilization management, genetic testing payment integrity, and expert genetics clinical trial support. For more information: www.InformedDNA.com
About NovaQuest Capital Management, L.L.C.
NovaQuest Capital Management is a leading investor in life sciences and healthcare through its Product Finance and Private Equity strategies. NovaQuest was formed in 2000 with the vision of building an investment platform to provide strategic capital to life sciences and healthcare companies. Today, NovaQuest Capital Management manages over $2.5 billion through its Product Finance and Private Equity strategies. The investment team consists of highly seasoned professionals with significant operating and investment experience and deep life science and healthcare expertise. Furthermore, NovaQuest benefits from an extensive network of industry experts and relationships that assist in identifying, analyzing and growing portfolio companies and investments. For more information, please visit www.novaquest.com
About TT Capital Partners
TT Capital Partners (TTCP) is a healthcare investor, collaborating with healthcare technology and services companies that have the potential to become market leaders. Leveraging the insights garnered from a unique knowledge-based platform, TTCP has invested in some of the most innovative, high-growth healthcare businesses. TTCP is part of the TripleTree healthcare merchant bank. For more information, visit TTCapitalPartners.com.
About Frist Cressey Ventures
Frist Cressey Ventures is focused on accelerating the growth of high potential healthcare enterprises through value-added partnerships. The firm invests in technology and service businesses with viable solutions that improve quality of care, system integration, patient outcomes, and population health and well-being. Frist Cressey Ventures joins like-minded entrepreneurs who share similar core values in their pursuit to improve healthcare. www.fcventures.com