AltheaDX Raises $30 Million, Announces New Tests

AltheaDX, a California-based lab that focuses on pharmacogenetic testing, has raised $30 million in a third round of financing. The money comes from several investors, including WUXi Healthcare Ventures, a Chinese venture capital firm with a significant presence among U.S. companies.

"The era of pharmacogenetic testing is now and AltheaDx has all the crucial components to be a major player in the field," said Wei Li, WuXi's managing partner, in a statement. "We look forward to working with the management team and supporting the company to become a leading provider of such tests."

The company said the financing will be used for product enhancements, to pursue business opportunities overseas and investments in long-term growth.

AltheaDX has introduced several new assays and panels in recent weeks. They include an expansion of an existing panel to test for the effectiveness of neuropsychiatric medications. The panel now tests for patient sensitivity and reaction to medications that are prescribed to treat both bipolar disorder and seizure disorder. The company's NeuroIDgenetix panel now tests for medications used for six different disorders, including depression, anxiety, psychosis and ADHD.

"These new Idgenetix tests provide a comprehensive approach using genomic profiling and medication therapy management to guide treatment decisions in an attempt to avoid unnecessary and potentially toxic therapies," said Jorge Garces, AltheaDX's chief operating officer. "There is a clear need to expand the use of pharmacogenetic testing beyond psychiatric care and into other clinical areas which often manifest as co-morbidities in these patients."

In addition to the expansion of the panel for psychiatric medications, the company also introduced a new next-generation sequencing panel focused on the development of new drugs for oncology care.

Takeaway: AltheaDX is ramping up its product pipeline and is taking in the required capital to continue to grow.