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NeoMatrix in preliminary discussions for possible sale or partnership, exit not expected for another two years, CEO says
April 2009 - NeoMatrix Merger Market - NeoMatrix, the privately held breast cancer screening device business, is currently in preliminary conversations with larger companies for a possible sale or partnership, said CEO John Stroh in an interview.
The company is always talking to companies in the space, but Stroh said he does not expect to exit for another two years. Based in Irvine, California, it has received USD 25m in financing to date, with the last round of series C2 funding garnering USD 15m this month. The company is not VC backed, he added, saying that it worked with investment banking firm Waveland Capital Group to raise funds from individual investors. Stroh declined to offer a valuation of the company.
The company works with a local law firm.
Although a partnership can happen, Stroh said that the most likely exit plan for the company is a sale, and that an exit could occur in the next two years.
In terms of possible buyers, Stroh said that a good strategic fit could be a larger medical device company such as Johnson & Johnson or a company that is in the field of monitoring and imaging. Pharmaceutical companies AstraZeneca and Eli Lilly also could be interested, as both market a drug for the treatment or prevention of early stage breast cancer, tamoxifen and Evista, respectively.
NeoMatrix manufactures, develops and markets a product known as the Halo System, which assesses the risk of breast cancer, a leading cause of death in women ages 25 to 55, he said.
The device works by collecting a sample of a woman's nipple aspirate fluid (NAF), which is found in the milk ducts where 95% of all breast cancers originate. Collection is a non-invasive treatment which heats, massages and then suctions the breast to bring NAF to the surface. Other methods, such as ductal lavage, uses a small catheter inserted inside the ducts at the nipple to collect NAF.
Analyzing NAF for risk assessment of breast cancer is a concept that dates back to the late 1940s, said Stroh, and it was invented by the same person who developed the pap smear for cervical cancer screening. The problem was generally an easy method for the collection of NAF, something that the Halo System accomplishes, Stroh claimed.
It is comparable to a pap smear in that it analyzes cellular changes, he said. Results can determine whether abnormal cells are present, which indicates a greater risk of developing breast cancer.
The company hopes the device will be used during a woman's annual health exam.
by Paunie Samreth
A part of the Financial Times Group, a Pearson company.
About NeoMatrix
NeoMatrix© is a medical device company developing innovative devices that allow women and their doctors to promote optimal breast health. The HALO Breast Pap Test is the first fully automated, noninvasive breast disease-screening device designed for use in the primary care setting. For further information, visit www.neomatrix.com.
Media Contacts:
pr@neomatrix.com