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Galen Partners Completes Majority Recapitalization of CDx Diagnostics

Leading healthcare-focused growth equity firm and operating partners collaborate with existing management to acquire a proprietary cancer diagnostics company

STAMFORD, Conn., July 11, 2017-- Galen Partners, a healthcare-focused growth equity investment firm, announced today that it has completed a majority recapitalization of CDx Diagnostics, Inc. Headquartered in Suffern, NY, CDx is a specialized anatomic pathology laboratory that utilizes proprietary technology, including advanced neural-network analysis and deep artificial intelligence tools, to enhance the detection of precancerous and cancerous tissue initially for clinical use in both the esophagus and oral cavity. The financial terms of the transaction have not been disclosed.

We are excited to back CDxs proprietary computer-assisted cancer detection platform, and CDx is a perfect fit for Galens strategy of investing in companies that create value in healthcare, said David Jahns, Managing Director at Galen Partners. 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, and the Companys unique WATS3D technology has been shown to be four times more effective than the current standard of care at detecting the most dangerous form of esophageal pre-cancer. Galen is further augmenting the CDx team by naming Special Investment Partner Tom Bologna as CDxs Chairman and industry veteran Jim Hutchinson as President / COO to complement the Companys existing management team with a proven anatomic pathology operator.

Mark Rutenberg, CDxs Founder and CEO, stated We are proud of CDxs 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 am 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. CDxs VP of Sales Tom Bartel added We are excited to partner with Galen they bring an unparalleled cultural fit, a unique blend of both anatomic pathology and technology expertise, and an extensive network across the healthcare industry. CDx represents Galens fourth clinical laboratory and diagnostic sector investment, which include Aperio, CBLPath, and Quotient Biodiagnostics.

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.

For more information, please visit

Cooley LLP served as legal advisors to Galen. FTI Consulting served as financial advisors to Galen. Nichols Management Group served as industry advisors to Galen. White Oak Healthcare Finance provided debt financing for the transaction.

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. CDxs mission is to provide doctors with the most powerful diagnostic technology to help prevent cancer before it can start. Unlike traditional testing methods, CDxs 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. CDxs technology permits the early detection of precancerous and cancerous cells, thus improving patient outcomes and lowering healthcare cost.

Eilenberg & Krause, LLP and Polsinelli served as legal advisors to CDx. BDA Partners served as investment banking advisor to CDx.

For more information, please visit

Stacey Bauer Office: (203) 653-6473

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