GenMark slashes expected price for IPO
GenMark Diagnostics slashed the price range for its already delayed initial public offering, dragging down the money it expects to raise by more than 21 percent, according to a filing Friday.
Experts who track the IPO market had expected the molecular diagnostics company, based in Pasadena, Calif., to go public this week. This month, however, volatile markets have squeezed a number of companies that felt ready to go public.
GenMark cut the amount it expects to raise by about $10 million to $36.2 million. The company, which plans to sell 4.5 million shares, lowered the expected price range to $6 to $7 per share from $8 to $10 it announced in a regulatory filing in March.
GenMark focuses on molecular tests for a range of conditions, including an FDA approved test for cystic fibrosis. It is developing tests for blood clots and respiratory viruses. The company's target markets are hospitals and reference laboratories.
GenMark plans to spend $15 million on test development, $10 million for sales and marketing, and the remainder for a mix of system funding and general corporate purposes, according to its filing with the Securities and Exchange Commission.
Piper Jaffray & Co. is the lead underwriter on the offering. GenMark Diagnostics Inc. plans to trade under the ticker "GNMK" on Nasdaq.