BDA advises CDx Diagnostics on majority recapitalization by Galen Partners

BDA Partners is pleased to announce that its client, CDx Diagnostics, has completed a majority recapitalization by Galen Partners, a healthcare-focused growth equity investment firm. CDx is an innovative cancer diagnostics company with a specific focus on detecting the precancerous precursors of esophageal and oral cancer. Terms of the transaction have not been disclosed.

BDA acted as exclusive financial advisor to CDx.

CDx applies neural-network-based three-dimensional microscopy to find dangerous abnormal cells before they can develop into an invasive cancer. The Company’s unique WATS^3D technology is four times more effective than the current standard of care at detecting the most dangerous form of esophageal pre-cancer. Galen is naming Tom Bologna as CDx’s Chairman and industry veteran Jim Hutchinson as President / COO to complement CDx’s existing management team with a proven anatomic pathology operator.

Mark Rutenberg, CDx’s Founder and CEO stated, “We’re proud of CDx’s history of creating a unique synthesis of computer science, molecular biology, and pathology to provide clinically proven, breakthrough diagnostic tools that have already prevented over 5,000 typically fatal cancers. All of our tests are immediately available to clinicians, require only a few minutes of practice time, are highly cost effective, widely reimbursed, and, most importantly, address a  recognized critical gap in the current diagnostic standard of care that results in thousands of otherwise unnecessary cancer deaths each year. I’m confident that with the support and guidance of Galen Partners, we will now accelerate our rapid growth in revenue, profitability, and clinical acceptance. More importantly, we will be able to advance our progress in making oral, throat, and esophageal cancer diseases of the past.”

David Jahns, Managing Director, Galen Partners, said, “We’re excited to back CDx’s proprietary computer-assisted cancer detection platform. CDx is a perfect fit for Galen’s strategy of investing in companies that create value in healthcare. Esophageal cancer is the most rapidly growing cancer in the US and is generally fatal; early detection of precancerous cells leads to improved patient outcomes all while lowering overall healthcare costs. CDx applies neural-network-based three-dimensional microscopy to find dangerous abnormal cells before they are allowed to develop into an invasive cancer.”