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NEWSPRING CAPITAL LEADS INITIAL CLOSING OF SERIES A FINANCING FOR REDPATH INTEGRATED PATHOLOGY, INC.
King of Prussia, PA – September 26, 2006– NewSpring Capital, a family of private equity funds, announced today that its healthcare fund, NewSpring Healthcare, has led an investment in RedPath Integrated Pathology, Inc. (“RedPath”). In this $7.0 million financing, NewSpring’s co-investors included CID Capital of Columbus, Ohio and other investors. RedPath is a national specialty laboratory that provides complex cancer diagnostic testing for pathologists, oncologists and clinicians involved in cancer diagnostics and treatment. RedPath is one of a small but growing field of companies that are translating the information gained from the Human Genome Project into everyday patient care through molecular-based diagnostics.
RedPath’s patented PathFinderTG™ technology renders an early and definitive diagnosis for difficult cases where cancer is suspected or pre-cancerous conditions exist. The unequivocal diagnosis, validated with a 95% accuracy rate, helps determine treatment plans, improve patient outcomes and reduce healthcare costs. RedPath plans to use the funds raised to increase sales and marketing activities and scale operations to meet market demand. Currently, more than two dozen major cancer centers use RedPath’s molecular-based analysis.
“This is an exciting time to invest and work with RedPath,” said Brian G. Murphy, Partner with NewSpring Capital, who will serve on the RedPath Board of Directors. “RedPath’s technology integrates and advances the intersection of pathology, molecular analysis and information sciences. We believe there is tremendous market opportunity for this unique approach to cancer diagnostics.”
“We are very pleased to have the backing of NewSpring Capital, CID Capital and our other investors who bring not just financial resources to RedPath, but valuable experience and deep knowledge of our markets,” said Mary Del Brady, President & CEO of RedPath Integrated Pathology, Inc. “Having reached an operating profit after just two years, we know there is enormous pent-up market demand that we will now be able to address with the added capital and assistance.”
About RedPath Integrated Pathology - RedPath Integrated Pathology, Inc., based in Pittsburgh, PA, is a national specialty laboratory that provides complex cancer diagnostic testing for pathologists, oncologists and clinicians. Its patented molecular-based analysis, PathFinderTG™, integrates with routine pathology review of fixed slides, cytology and fluid specimens to render an early and definitive diagnosis where none would otherwise exist, thus improving patient outcomes and reducing healthcare costs. www.redpathip.com
About NewSpring Capital - NewSpring Capital, based in King of Prussia, PA, is a family of specific purpose private equity funds which includes: NewSpring Ventures, L.P., a venture capital fund providing equity capital to growth and expansion stage companies with a focus on information technology, business services and healthcare; NewSpring Healthcare, L.P., a venture capital fund focused on intermediate-and late-stage life science and healthcare companies; and NewSpring Mezzanine Capital, L.P., a regionally focused mezzanine debt fund that invests in information technology, business services, healthcare and specialty manufacturing. www.newspringcapital.com
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