AP

Nanosphere Plans Initial Public Offering

Monday August 13, 8:17 am ET

Medical Test Maker Nanosphere Plans Initial Public Offering of Common Stock

NEW YORK (AP) -- Nanosphere Inc., which makes a system for gene and protein testing, plans an initial public offering of its common stock, according to a regulatory filing Monday with the Securities and Exchange Commission.

The company did not disclose the expected number or price range of the shares to be offered, but indicated the offering could total up to $100 million.

The company said it is currently developing diagnostic tests for conditions including cancer, neurodegenerative, cardiovascular and infectious diseases, as well as tests for personalized medicine.

The company plans to use about $50 million of the net proceeds from the IPO to finance research and development and about $40 million to fund sales and marketing personnel and initiatives. Nanosphere said it expects to use the remainder of the net proceeds for working capital and general corporate purposes.

For the three months ended March 31, Nanosphere's loss after paying preferred dividends widened to $8.8 million, from $5.1 million in the prior year. During the same period, the company's revenue increased to $269,900, from $79,300.

The company warned that its losses are "likely to increase significantly" and that it may never be profitable.

The Northbrook, Ill.-based company noted that the total offering price was estimated solely to calculate its registration fee and may change.

Credit Suisse Securities is serving as the IPO's lead underwriter. Piper Jaffray, Leerink Swann and Allen & Co. are also serving as underwriters.

Nanosphere plans to list its shares on the Nasdaq Stock Market under the symbol "NSPH."