Oncocyte secures $29.1 million to advance FDA assay

IRVINE, Calif. - Oncocyte Corp. (NASDAQ: OCX), a diagnostics technology company, has announced a funding round led by existing investors, including strategic partner Bio-Rad Laboratories, Inc. (NYSE: NYSE:BIO), a $9.6 billion market cap company with strong financial health. According to InvestingPro analysis, Bio-Rad currently appears undervalued and maintains a healthy current ratio of 6.14, indicating robust liquidity. The round is expected to generate $29.1 million, which will be used primarily to fund the company’s FDA In-Vitro Diagnostic (IVD) transplant assay program through clearance and commercial launch.

The company’s management expressed confidence in the technology’s potential to improve patient care in transplant diagnostics. Oncocyte’s President and CEO, Josh Riggs, stated that the assay’s workflow is designed to be easily adopted by transplant centers, offering rapid results for better decision-making. Clinical data suggests the company’s technology can detect signs of kidney transplant rejection significantly earlier than current standards. With Bio-Rad’s backing and its conservative debt-to-equity ratio of 0.19, as reported by InvestingPro, the partnership shows strong financial foundations. Discover more insights and 6 additional ProTips about Bio-Rad with an InvestingPro subscription.

Oncocyte’s CFO, Andrea James, emphasized financial discipline and commitment to capital stewardship as the company prepares for growth in the $1 billion global transplant testing market. Bio-Rad’s overall financial health score of "GOOD" from InvestingPro and its upcoming earnings report in 3 days suggest strong potential for this strategic partnership.

The offering was priced at $2.05 per share without discounts or incentive warrants. It included the sale of both common stock and pre-funded warrants, with the expectation that combined funds from the offering and current cash on hand will fully support the development of the transplant assay program.

The closings of the Registered Direct Offering and the PIPE Offering are expected to take place today, subject to customary closing conditions. Needham & Company served as financial advisor to Oncocyte for this transaction.

The company has committed to file a registration statement with the Securities and Exchange Commission for the resale of the shares and pre-funded warrants issued in the PIPE Offering by March 15, 2025.

This funding initiative follows regulatory guidelines, with the Registered Direct Offering conducted under an effective shelf registration statement and the PIPE Offering in compliance with Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder.

The information in this article is based on a press release statement from Oncocyte Corp.

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