NanoString Technologies Inc. has closed $20 million in a Series D round of equity financing.  New investors include GE, BioMed Ventures and Henri Termeer, former Chairman and CEO of Genzyme Corp. All previous venture investors in NanoString also participated in the financing, including Clarus Ventures, Draper Fisher Jurvetson and OVP Venture Partners.

The proceeds of the financing will be used to continue the growth of NanoString’s life science tools business, as well as advance the development of the company’s first molecular diagnostic product, a breast cancer assay based on the PAM50 gene expression signature. 

This investment in NanoString represents the first by GE’s healthymagination Fund that is aligned with GE Healthcare’s recently announced $1 billion commitment to new oncology R&D.  “NanoString is a good strategic fit with GE Healthcare, given our common focus on oncology,” said Pascale Witz, President and CEO of GE Healthcare’s Medical Diagnostics business. “GE Healthcare’s growing personalized medicine portfolio encompasses a wide range of life science tools and diagnostic solutions. We believe NanoString’s nCounter Analysis System gives researchers the potential to take basic biomarker discoveries into the clinic. We look forward to exploring ways to collaborate with the NanoString team.”

Henri Termeer served as Chairman, President and CEO of Genzyme until July 2011.  During his 27 year tenure, Genzyme introduced numerous innovative therapeutics and diagnostics for genetic disease and cancer.  “The development and use of targeted cancer therapies requires understanding each patient’s tumor at a molecular level,” said Termeer. “NanoString’s technology provides an invaluable tool in cancer research and drug development, and has the potential to enable a globally scalable approach to personalized medicine.”

“This financing has brought both growth capital and a constellation of healthcare leaders into NanoString’s orbit,” said Brad Gray, President and CEO of NanoString Technologies. “We look forward to applying these new funds and relationships to growing the installed base for our nCounter research platform, and in parallel, advancing our molecular diagnostics program through clinical development and regulatory approval.”

NanoString’s nCounter Analysis System is a fully automated, multi-application digital detection and counting system with a very simple workflow.  The nCounter system has been employed in basic and translational research since it was first introduced in 2008. NanoString provides assays for gene expression, miRNA analysis and copy number variation. NanoString recently launched its second generation nCounter system, which includes the hardware upon which the company will pursue regulatory clearance for its breast cancer subtyping assay and other molecular diagnostic assays.

In September, GE Healthcare announced that it will be investing $1 billion into oncology solutions during the next five years. Less than two months later, GE has demonstrated its commitment to this pledge by investing in NanoString, which has developed a breast cancer test. Such rapid and concrete actions by GE is both impressive and commendate. It will be interesting to see what other investments GE will make in the future and what impact they have on the IVD industry.

-Richard Park