11 July 2017

BDA advises CDx Diagnostics on majority recapitalization by Galen Partners

recapitalized majority by


BDA Partners is pleased to announce that its client, CDx Diagnostics, has completed a majority recapitalization by Galen Partners, a healthcare-focused growth equity investment firm. CDx is an innovative cancer diagnostics company with a specific focus on detecting the precancerous precursors of esophageal and oral cancer. Terms of the transaction have not been disclosed.

BDA acted as exclusive financial advisor to CDx.

CDx applies neural-network-based three-dimensional microscopy to find dangerous abnormal cells before they can develop into an invasive cancer. The Company’s unique WATS3D technology is four times more effective than the current standard of care at detecting the most dangerous form of esophageal pre-cancer. Galen is naming Tom Bologna as CDx’s Chairman and industry veteran Jim Hutchinson as President / COO to complement CDx’s existing management team with a proven anatomic pathology operator.

Mark Rutenberg, CDx’s Founder and CEO stated, “We’re proud of CDx’s history of creating a unique synthesis of computer science, molecular biology, and pathology to provide clinically proven, breakthrough diagnostic tools that have already prevented over 5,000 typically fatal cancers. All of our tests are immediately available to clinicians, require only a few minutes of practice time, are highly cost effective, widely reimbursed, and, most importantly, address a  recognized critical gap in the current diagnostic standard of care that results in thousands of otherwise unnecessary cancer deaths each year. I’m confident that with the support and guidance of Galen Partners, we will now accelerate our rapid growth in revenue, profitability, and clinical acceptance. More importantly, we will be able to advance our progress in making oral, throat, and esophageal cancer diseases of the past.”

David Jahns, Managing Director, Galen Partners, said, “We’re excited to back CDx’s proprietary computer-assisted cancer detection platform. CDx is a perfect fit for Galen’s strategy of investing in companies that create value in healthcare. Esophageal cancer is the most rapidly growing cancer in the US and is generally fatal; early detection of precancerous cells leads to improved patient outcomes all while lowering overall healthcare costs. CDx applies neural-network-based three-dimensional microscopy to find dangerous abnormal cells before they are allowed to develop into an invasive cancer.”

"CDx is such an innovative oncology diagnostics company. We’re glad to have secured the best future partner to help CDx grow globally. BDA is increasingly well placed to advise on complex transactions in the healthcare sector, worldwide."

Euan Rellie
Co-founder and Senior Managing Director
BDA Partners

About Galen Partners

Founded in 1990, Galen Partners is a leading healthcare-focused growth equity investment firm. With nearly $1 billion invested over five funds, Galen has helped build more than 70 companies since our inception.  The firm continues a tradition of strategic collaboration and partnership with Founders and management teams to build healthcare market leaders. Under the direction of the Managing Directors Philip Borden, David Jahns and Zubeen Shroff, Galen seeks to make investments in high-growth healthcare companies with revenues greater than $10 million and EBITDA between $0 and $9 million. www.galen.com

About CDx Diagnostics and the WATS3D Biopsy

CDx Diagnostics is an established cancer diagnostics laboratory with a specific focus on detecting the precancerous precursors of esophageal and oral cancer. CDx’s mission is to provide doctors with the most powerful diagnostic technology to help prevent cancer before it can start. Unlike traditional testing methods, CDx’s WATS3D test collects a wide-area tissue sample of the entire thickness of the lining of the esophagus, which is then subjected to specialized, computer-assisted, three-dimensional analysis that pinpoints precancerous cells. A recently completed randomized clinical trial conducted at 16 academic medical centers found WATS3D to be four times more effective than the standard random biopsy protocol at detecting the most dangerous form of esophageal precancerous tissue.  CDx’s technology permits the early detection of precancerous and cancerous cells, thus improving patient outcomes and lowering healthcare cost. www.cdxdiagnostics.com

About BDA

BDA Partners is a leader in cross-border investment banking involving Asia. BDA advises on M&A and capital raising. BDA has been consistently owned and managed by the same team since 1996. BDA has a track record of providing independent advice to blue-chip corporate and financial sponsor clients from North America, Europe, and Asia. BDA is headquartered in New York with offices in London, Dubai, Mumbai, Ho Chi Minh City, Singapore, Hong Kong, Shanghai, Seoul, and Tokyo. BDA formed a partnership with William Blair & Company in 2011. www.bdapartners.com

US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc, a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorised and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors.