Good Start Genetics gets $28M loan from Capital Royalty

May 8 2013

Good Start Genetics^®, Inc., an innovative molecular diagnostics company that has developed the new gold standard in carrier screening, today announced that it has closed a non-dilutive loan facility for up to $28 million of capital from Capital Royalty L.P. Good Start Genetics will use the proceeds to support its long-term corporate growth initiatives for the company's next-generation sequencing (NGS) based carrier screening platform.

“Our investment in Good Start Genetics is consistent with our focus on providing flexible financing solutions for innovative companies with commercial technologies”

"Our investment in Good Start Genetics is consistent with our focus on providing flexible financing solutions for innovative companies with commercial technologies," said Charles Tate, chairman and founder of Capital Royalty L.P. "We are excited about the significant long-term growth potential of Good Start given the combination of its unique next-generation sequencing based technology, applicability of GoodStart Select™ in large and growing markets, and very capable management team."

Good Start Genetics is a leading provider of carrier screening for the in vitro fertilization (IVF) market. Since its April 2012 commercial launch targeting the 460 IVF centers in the United States, Good Start Genetics' high-complexity, CLIA- and CAP-accredited laboratory has processed tens of thousands of test orders. The GoodStart Select carrier screening service provides testing for all 23 diseases recommended by major medical societies and detects both common disease-causing mutations, as well as rare pathogenic mutations that would go undetected by laboratories using older, traditional genotyping-based technologies.

"We're proud to have the support of Capital Royalty through this investment and under very attractive, non-dilutive terms," said Don Hardison, president and chief executive officer of Good Start Genetics. "These funds further position us to continue growing our NGS-based GoodStart Select carrier screening presence within the IVF community, while evaluating potential opportunities to expand our reach into other areas, including global carrier screening markets. We are now in a strong financial position with sufficient capital to take us far beyond our projected 2013 profitability and cash flow operating goals."