Torrance, California, October 13, 2009 – Pathology, Inc., a provider of anatomic pathology and molecular diagnostic testing services, today announced it has received a Series A investment led by ABS Capital Partners, a leading later-stage growth company investor, and has named Vicki DiFrancesco as CEO and Steve Pierce as CFO. Ms. DiFrancesco brings over 30 years experience in the laboratory services industry, most recently serving as Executive Vice President of Sales and Marketing for Spectrum Laboratory Network. Mr. Pierce was CFO of US Pathology Labs, Inc. an ABS Capital portfolio company which was sold to Laboratory Corporation of America. Current CEO, Alfred Lui, M. D., will transition into the role of Chairman of the Board and will continue to serve, along with Eric Glassy, M. D., as one of the Medical Directors for the Company. Proceeds will be used to partially retire founding shareholders as well as support growth and invest in new technologies. Also, as a result of the financing, Mark Anderson, General Partner at ABS Capital, and John Stobo, Managing General Partner at ABS Capital, will join Pathology’s Board of Directors.
“Our Company has always been an industry leader in terms of adopting new technologies and delivering high quality service,” said Lui. He added, “With this investment and the addition of new leaders, I am confident that we will maintain our edge in these areas and expand our offerings.”
“There is no question that health care is on everyone’s minds these days,” said DiFrancesco. “The mindset is changing from episodic treatment of disease to preventative care. Due to continued demand for both routine and more advanced tests designed to support the early diagnosis, treatment, and monitoring of disease, anatomic pathology has grown at a faster rate than the clinical laboratory testing market. We are excited about what the team at Pathology, Inc. has built and all of the opportunities ahead for the Company.”
Pathology Inc. is recognized as the region’s leading anatomic pathology laboratory with a track record of combining innovative diagnostic technologies with nationally recognized pathology expertise. The Company specializes in diagnostic testing services with expertise in gynecology, genitourinary pathology, gastrointestinal pathology, dermatopathology, hematopathology, and cytopathology. The Company also performs an array of tests focusing on women’s health including comprehensive liquid based Pap testing and an array of associated molecular diagnostic assays and computer assisted interpretation techniques. The women’s health market represents one of the largest anatomical pathology segments, with the U.S. cervical cancer screening market alone estimated at over $1.7 billion.
“The Company is in an excellent position to capitalize on the increased demand for its services driven by favorable market dynamics, deep diagnostic expertise and a strong reputation for providing prompt, effective, and personalized care for the patient’s benefit,” said Anderson. “We look for companies that have strong leadership, exceptional organic growth opportunities, as well as the ability to serve as a strong platform for integrating potential strategic acquisitions—Pathology, Inc. absolutely checks all these boxes.”
ABS Capital has backed other leading laboratory service companies such as Inform DX (merged into AmeriPath, Inc.), US Pathology Labs, Inc. (sold to Laboratory Corporation of America Holdings (NYSE: LH) and American Esoteric Laboratories, Inc. (sold to Sonic Healthcare Limited.)
England & Company acted as the exclusive adviser to the investor group.
ORIX Venture Finance LLC provided venture debt to the Company.