NovaQuest closes growth investment in InformedDNA

NovaQuest Capital Management (NovaQuest), a healthcare and life sciences focused private investment firm, has closed an investment in InformedDNA, a 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 counsellors. Terms of the private transaction have not been 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,” says Nixon. “Nearly a third of all genetic tests are ordered in error, negatively impacting patients, payers and providers. This investment will allow our organisation 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 specialised expertise to select and interpret tests, which can quickly lead to unnecessary costs for patients and payers. As the largest genetic expert services organisation in the United States, employing more than 85 genetic counsellors, 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,” says 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 organisations.”
“Healthcare is at an important inflection point, with new genetic testing capabilities promising more personalised 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 organisations better understand the genomic space. We are excited to work with such an experienced genetics-focused organisation to continue to provide rare expertise to the healthcare industry.”
InformedDNA has seen rapid growth and development in recent years, experiencing over 50 per cent annual growth in each of the last two years and doubling its genetic counselilng staff since 2017. Founded in 2007, InformedDNA was the first company in the United States to use telephonic services to connect genetic counsellors to patients. Since then, it has expanded to provide technology-led services to patients, health plans, providers, health systems, and pharmaceutical and life science organisations.
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.