NEW YORK – Norwegian microbiome diagnostic company Genetic Analysis said on Tuesday that it has raised $6.8 million in an oversubscribed initial public offering.
The issue of units totaled NOK 99 million ($11.6 million) and the company received approximately NOK 60 million before issue costs. It is being traded on the Swedish Spotlight Stock Market in Stockholm, and its share price closed up 50 percent over the first two days of trading.
Genetic Analysis, based in Oslo, said in a statement that it plans to use the funding to accelerate commercialization of its GA-map diagnostic platform for the analysis of gut microbiota in the EU and US.
The platform uses an algorithm to analyze a large number of bacteria simultaneously in one reaction, the firm said. The Oslo-based company also offers its HumGut database, a collection of 30,000 genomes from bacteria found in the human gut.
CEO Ronny Hermansen said the platform will help companies "successfully develop microbiome-altering drugs that will benefit the vast number of patients suffering from bowel-related diseases." The firm’s tests could also have a role in monitoring patient outcomes, he added.
In June, Genetic Analysis was awarded NOK 16 million by the Norwegian Research Council to develop a microbiome-based diagnostic test for the selection and treatment of patients with inflammatory bowel disease.