Cernostics Acquisition, Valuation, Funding & Investors

Cernostics was acquired by Castle Biosciences for $3B in October 2021, a 5.0x multiple on $588M of revenue.

Cernostics acquisition price

$3B

Acquired by Castle Biosciences · Oct 2021

Cernostics revenue at acquisition

$588M

Last twelve months · Oct 2021

Cernostics revenue multiple at acquisition

5.0x

EV/Revenue · Oct 2021

Cernostics EBITDA multiple at acquisition

8.9x

EV/EBITDA · Oct 2021

Cernostics Overview

About Cernostics

Cernostics is a life sciences company developing molecular diagnostic tests for cancer using its TissueCypher platform. Pittsburgh-headquartered, the technology analyzes whole-slide images with multiplexed immunofluorescence to assess tumor microenvironments in esophageal and gastric cancers. Cernostics partners with pharma companies for companion diagnostics supporting immunotherapy decisions.


Founded

2008

HQ

United StatesSan Francisco, CA

Status

Acquired

Customer focus

B2B

Revenue model

Services

Revenue

$588M (Oct 2021)

Valuation

$3B (acquired Oct 2021)

Cernostics Acquisition

Cernostics was acquired by Castle Biosciences for $3B on 19 October 2021.

The acquisition price implies a 5.0x revenue and 8.9x EBITDA multiple on $588M of revenue.

Before the acquisition Cernostics had raised $18M across 6 funding rounds.

Cernostics acquisition details
AcquirerDateTypePriceEV/RevenueEV/EBITDA
19 Oct 2021Strategic M&A$3B5.0x8.9x

Cernostics Funding History

Cernostics has raised a total of $18M across 6 funding rounds.

Cernostics' first fundraising round was a $1M seed round in July 2013. The most recent completed round was a $6M Series A in August 2021.

Cernostics funding rounds

Cernostics funding rounds
DateStageInvestorsRaisedDeal Summary
Aug 2021Series A-$6M-
Mar 2018Series AIllumina Ventures (lead)$3MCernostics raised $2.5 million in Series A1 financing led by Illumina Ventures on March 21, 2018. The funding brought total capital raised to $13 million, including prior investments from UPMC Enterprises, Novitas Capital, Geisinger Health System, the Pittsburgh Life Sciences Greenhouse, and Ben Franklin Technology Partners of Northeastern PA. Cernostics develops next-generation cancer diagnostics and prognostics using its TissueCypher Image Analysis Platform. The proceeds will support clinical and market development studies for the TissueCypher Barrett's Esophagus Assay, the first test predicting esophageal cancer risk in Barrett's esophagus patients.
Aug 2016Series AUPMC (lead); Novitas Capital$5MCernostics is an oncology diagnostics company developing precision medicine technology, including the TissueCypher platform for identifying cancer risk in conditions like Barrett’s Esophagus, with potential applications in lung, breast, and colon cancer. On August 31, 2016, the Pittsburgh-based company raised a $5 million funding round led by UPMC Enterprises, the commercialization arm of UPMC, with participation from Novitas Capital. Previous investors included Geisinger Health System, Ben Franklin Technology Partners of Northeastern Pennsylvania, and the Pittsburgh Life Sciences Greenhouse. The company had raised $11 million total since 2010, including a Series B round in 2013 and follow-on funding in 2014. The investment supports growth and acceleration of Cernostics’ diagnostic test for Barrett’s Esophagus, a precursor to esophageal cancer, while providing UPMC physicians and scientists access to the technology platform for developing additional precision medicine tests. UPMC views the partnership as strategic, leveraging its clinical expertise, provider network, and insurance capabilities to advance commercialization in oncology diagnostics.
Jun 2015SeedBen Franklin Technology Partners of Northeastern Pennsylvania (lead)$2M-
Dec 2013Series BNovitas Capital; Pittsburgh Life Sciences Greenhouse; Geisinger$1M-
Jul 2013SeedNovitas Capital (lead)$1M-

Who has invested in Cernostics?

6 investors have backed Cernostics across its funding rounds, including Novitas Capital, Illumina Ventures, UPMC, Ben Franklin Technology Partners of Northeastern Pennsylvania, Pittsburgh Life Sciences Greenhouse and Geisinger.

Lead investors include Illumina Ventures, UPMC, Ben Franklin Technology Partners of Northeastern Pennsylvania and Novitas Capital.


Cernostics Investors

Investors in Cernostics by funding rounds participated
InvestorHQRoundsRoleFirst check
Novitas CapitalUnited StatesPhiladelphia, PA3LeadJul 2013
Illumina VenturesUnited StatesSan Francisco, CA1LeadMar 2018
UPMCUnited StatesPittsburgh, PA1LeadAug 2016
Ben Franklin Technology Partners of Northeastern PennsylvaniaUnited StatesAllentown, PA1LeadJun 2015

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Cernostics Competitors

Cernostics competitors include listed companies like Insight Lifetech and BillionToOne, and private ones like ArsenalBio, EverlyWell, Ankon Medical Technologies and CMR Surgical.

Public and private companies comparable to Cernostics
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
ArsenalBioUnited StatesUnited StatesPrivate--$1.9B-
Insight LifetechChinaChinaPublicly listed$81M$18M$1.8B21.4x
BillionToOneUnited StatesUnited StatesPublicly listed$305M$12M$5.2B11.7x
EverlyWellUnited StatesAustin, TXPrivate$100M-$1.3B13.0x
Ankon Medical TechnologiesChinaWuhanPrivate--$870M-
CMR SurgicalUnited KingdomCambridgePrivate--$3B-

Cernostics Public Comps

Cernostics is no longer listed, but its public comps include TransMedics, AtriCure, Carl Zeiss Meditec, CareDx, Lepu Medical Technology, GeneDx, Autobio Diagnostics, Medacta Group, Axogen and Veracyte.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
TransMedics$605M$149M5.6x4.8x22.9x21.3x
AtriCure$535M$12M5.4x5.0x247.3x36.3x
Carl Zeiss Meditec$2.6B$392M1.2x1.3x8.1x9.8x
CareDx$380M($10M)6.5x5.3x(249.3x)41.0x
Lepu Medical Technology$967M$292M3.7x3.8x12.3x14.2x
GeneDx$428M$7M7.4x6.8x477.6x183.5x
Autobio Diagnostics$630M$253M4.1x4.0x10.2x10.5x
Medacta Group$788M$226M3.8x3.5x13.2x12.7x

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Common questions about Cernostics

When was Cernostics founded?Cernostics was founded in 2008.
Where is Cernostics headquartered?Cernostics is headquartered in San Francisco, CA, United States.
Is Cernostics publicly listed?No, Cernostics was acquired by Castle Biosciences in October 2021.
Who acquired Cernostics?Cernostics was acquired by Castle Biosciences in October 2021.
How much was Cernostics acquired for?Cernostics was acquired for $3B in October 2021, a 5.0x revenue multiple.
How much funding has Cernostics raised?Cernostics has raised $18M across 6 funding rounds.
What was Cernostics' last funding round?Cernostics' last funding round was a $6M Series A in August 2021.
Who are Cernostics' investors?Cernostics' investors include Novitas Capital, Illumina Ventures, UPMC, Ben Franklin Technology Partners of Northeastern Pennsylvania, Pittsburgh Life Sciences Greenhouse and Geisinger.
Which companies are comparable to Cernostics?Companies comparable to Cernostics include ArsenalBio, Insight Lifetech, BillionToOne, EverlyWell, Ankon Medical Technologies and CMR Surgical.

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