CareDx Inc (NASDAQ:CDNA) has priced its underwritten public offering of around 4.341 million shares at a price of $4 per share. In addition, the firm granted the underwriters a 30-day alternative to buy up to 651,240 additional shares to meet over-allotments, if any. The firm anticipates to close the public offering on or about October 9, 2017, depending on the closure of customary closing conditions. H.C. Wainwright & Co. is the co-manager for the offering while Craig-Hallum Capital Group is sole book-running manager.
CareDx expects the aggregate net proceeds will be around $15.9 million, after subtracting the underwriting discounts and commissions and projected offering expenses payable by the firm, but discounting any exercise of the underwriters’ alternative to buy additional shares. The firm plans to use the net proceeds from the public offering for general corporate purposes and working capital.
Earlier in the last week of September, CareDx reported that it has obtained notice that the Molecular Diagnostics Services Program advanced by Palmetto GBA has fixed AlloSure reimbursement at $2,840.75. AlloSure will be repaid for kidney transplant patients protected by Medicare across the U.S. starting October 9, 2017. Around 80% of kidney transplant patients are offered cover by Medicare. Payments will be done by Noridian, which has executed the MolDX Plan and is the Medicare administrator in company’s jurisdiction.
Medicare repayment for AlloSure follows a demanding technical assessment by the MolDX Plan. Evidence in favor of the AlloSure test comprised a clinical study in 400 patients and 14 major transplant centers with follow-up over eighteen months. A potential observational cohort trial will start in early 2018 to offer more data on longer term results, as part of an exposure under data development obligation.
In the last trading session, the stock price of CareDx jumped more than 31% to close the day at $5.82.