Healthcare Business

Fulgent Genetics Announces Potential Pricing for IPO

Fulgent Genetics has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its IPO. The company expects to offer 4.6 million shares in an expected price range of $12 to $14 per share, with an overallotment option for an additional 690,000 shares. At the maximum price, the entire offering is valued up to $74.06 million. The company intends to list its shares on the Nasdaq under the symbol FLGT.

The underwriters for the offering are Credit Suisse, Piper Jaffray, Raymond James and BTIG.

This is a rapidly growing technology company with an initial focus on offering comprehensive genetic testing to provide physicians with clinically actionable diagnostic information they can use to improve the overall quality of patient care.

Fulgent has developed a proprietary technology platform that integrates sophisticated data comparison and suppression algorithms, adaptive learning software, advanced genetic diagnostics tools and integrated laboratory processes. This platform allows it to offer a broad and flexible test menu while maintaining accessible pricing, high accuracy and competitive turnaround times.

The company believes its current test menu offers more genes for testing than competitors in today’s market, which enables it to provide expansive options for test customization and clinically actionable results. The current test menu includes more than 18,000 single-gene tests and more than 200 pre-established, multi-gene, disease-specific panels that collectively test for more than 7,500 genetic conditions, including various cancers, cardiovascular diseases and neurological disorders.

According to GrandView Research, the size of the global NGS genetic testing market, which includes presequencing, sequencing and data analysis, is estimated to be approximately $4.0 billion in 2016, including approximately $1.4 billion in the United States, and is expected to reach approximately $10.5 billion by 2022, including approximately $3.6 billion in the United States.

The company intends to use the net proceeds from this offering for working capital and general corporate purposes.