Two San Diego life science firms announced funding Tuesday: Pathway Genomics Corp. pulled in $40 million in a Series E round and GlySens Inc. raised $20 million in a Series D round.
Pathway Genomics, a company recently in hot water with both the FDA and the U.S. Department of Justice, said in a statement that the funds will spur the development of its genetic tests.
“This capital will allow us to continue to expand and validate the tests we offer, grow our sales force, and invest in cutting-edge technology for our...accredited laboratories,” said Jim Plante, founder and CEO of Pathway Genomics, in a statement.
Investors in the round include IBM Watson, Pathway’s partner in the development of a mobile app using IBM’s artificial intelligence expertise. This recent round brings the total investment in Pathway Genomics to over $130 million.
Pathway Genomics recently paid more than $4 million to resolve allegations that it violated the federal False Claims Act by paying kickbacks to doctors in exchange for patient referrals, the U.S. Attorney’s Office announced. The company admitted no wrongdoing.
GlySens Inc., an implantable continuous glucose monitor developer, has closed a $20 million Series D round led by prior investors and a “significant participation of new investors,” according to a company news release.
The company is developing an implantable sensor for monitoring glucose, called the Eclipse, which needs calibration no more than two times a month. The device wirelessly communicates with an external receiver which provides constant glucose monitoring.
The proceeds from this round will go towards clinical trials, hiring additional staff and building out a new modern facility and manufacturing plant, said Joseph Lucisano, co-founder and chief technology officer of GlySens, in a statement.