MDNA Life Sciences Starts IPO Rollout


  • MDNA Life Sciences has filed to raise development capital from a U.S. IPO.
  • The firm is developing early stage biomarker tests for various types of cancers and endometriosis conditions.
  • MDLS is still in regulatory and development stage for early pipeline of diagnostic tests, so the IPO is high risk.
  • I'll provide an update when we learn more details about the IPO from management.
  • Looking for more investing ideas like this one? Get them exclusively at IPO Edge. Learn More »

Men"s health exam with doctor or psychiatrist working with patient having consultation on diagnostic examination on male disease or mental illness in medical clinic or hospital mental health service


A Quick Take On MDNA Life Sciences

MDNA Life Sciences Inc. (MDLS) has filed to raise $24.6 million in an IPO of its units of common stock and one warrant, according to an S-1 registration statement.

The firm is developing liquid biopsy tests for early detection of serious diseases.

When we learn management’s pricing and valuation expectations in a following filing, I’ll provide a final opinion.

MDNA Overview

West Palm Beach, Florida-based MDNA was founded to develop a family of biomarker identification diagnostic tests for detection of cancers and other diseases.

Management is headed by Chief Executive Officer Christopher C. Mitton, who has been with the firm since January 2016 and was previously head of sales operations for Cancer Genetics and led the N. America commercial operations expansion for Ipsogen.

The company’s primary development pipeline is shown here:

Company Pipeline

Company Pipeline (SEC - EDGAR)

MDNA has booked fair market value investment of $27.7 million as of September 30, 2021.

MDNA - Customer Acquisition

The company is still in development for its primary technologies, which have proceeded in trials in Europe.

The revenue generated so far has been related to COVID-19 diagnostic testing services and management expects such revenue 'to taper off and ultimately cease by the end of the second quarter of 2022.'

The firm expects "revenues from our Mitomic tests to commence in the fourth quarter of 2022."

General & Administrative expenses as a percentage of total revenue have dropped as its COVID-19 test-related revenues have increased, as the figures below indicate:

General & Administrative

Expenses vs. Revenue



FYE September 30, 2021


FYE September 30, 2020


(Source - SEC)

The General & Administrative efficiency multiple, defined as how many dollars of additional new revenue are generated by each dollar of General & Administrative spend, was 1.7x in the most recent reporting period. (Source - SEC)

MDNA’s Market & Competition

According to a 2020 market research report by Grand View Research, the global market for prostate cancer diagnostics was an estimated $2.8 billion in 2019 and is forecast to reach $7.6 billion by 2027.

This represents a forecast CAGR of 13.2% from 2020 to 2027.

The main drivers for this expected growth are an increasing prevalence of prostate cancer among an aging global population and a growing awareness of related symptoms.

There are three primary test types used for diagnosing prostate cancer, with their respective market shares shown in the chart below:

Global Prostate Cancer Market by Test Type

Global Prostate Cancer Market by Test Type (Grand View Research)

Also, the chart below shows the historical and projected future growth trajectory of the U.S. prostate cancer diagnostics market size:

U.S. Prostate Cancer Diagnostics Market

U.S. Prostate Cancer Diagnostics Market (Grand View Research)

MDNA is also developing biomarker tests for other markets, including endometriosis, ovarian cancer and lung cancer.

Major competitive or other industry participants include:

  • MDx Health

  • Myriad Genetics

  • Abbott Laboratories

  • F. Hoffman-La Roche AG

  • Siemens Healthineers AG

  • OPKO Health

  • Genomic Health

MDNA Life Sciences Financial Performance

The company’s recent financial results can be summarized as follows:

  • Increasing topline revenue

  • Growing gross profit and gross margin

  • Decreased operating loss

  • Reduced cash used in operations

Below are relevant financial results derived from the firm’s registration statement:

Total Revenue


Total Revenue

% Variance vs. Prior

FYE September 30, 2021

$ 3,602,296


FYE September 30, 2020

$ 106,009

Gross Profit (Loss)


Gross Profit (Loss)

% Variance vs. Prior

FYE September 30, 2021

$ 1,782,944


FYE September 30, 2020

$ (200)

Gross Margin


Gross Margin

FYE September 30, 2021


FYE September 30, 2020


Operating Profit (Loss)


Operating Profit (Loss)

Operating Margin

FYE September 30, 2021

$ (1,018,986)


FYE September 30, 2020

$ (3,190,201)


Net Income (Loss)


Net Income (Loss)

Net Margin

FYE September 30, 2021

$ (2,999,522)


FYE September 30, 2020

$ (4,566,303)


Cash Flow From Operations


Cash Flow From Operations

FYE September 30, 2021

$ (557,417)

FYE September 30, 2020

$ (1,376,683)

(Glossary Of Terms)

(Source - SEC)

As of September 30, 2021, MDNA had $958,212 million in cash and $20.8 million in total liabilities.

Free cash flow during the twelve months ended September 30, 2021, was negative ($621,349).

MDNA Life Sciences IPO Details

MDNA intends to raise $24.6 million in gross proceeds from an IPO of its units of common stock (MDLS) and one warrant (MDLSW) per share, although the final figure may differ.

No existing shareholders have indicated an interest to purchase units at the IPO price.

Management says it will use the net proceeds from the IPO as follows:

to fund our research and development activities;

to fund the regulatory review process for each of our products;

to fund repayment of debt to vendors and management; and

for working capital and other general corporate purposes, including the additional costs associated with being a public company.

(Source - SEC)

Management’s presentation of the company roadshow is not available.

Regarding outstanding legal proceedings, management says the company is "currently not a party to any material legal proceedings."

The sole listed bookrunner of the IPO is EF Hutton.

Commentary About MDNA’s IPO

MDLS is seeking public capital market funding to continue its diagnostic test regulatory review processes and to pay down debt.

The company’s financials have shown growing topline revenue, increasing gross profit and gross margin, reduced operating loss and lowered cash used in operations.

Free cash flow for the twelve months ended September 30, 2021, was negative ($621,349).

General & Administrative expenses as a percentage of total revenue dropped as revenue increased; its General & Administrative efficiency multiple was 1.7x in the most recent reporting period.

The firm currently plans to pay no dividends and intends to use any profits in the foreseeable future to reinvest back into the business.

The market opportunity for various biomarker early stage testing products is large but the firm faces significant competition from entrenched players as well as new would-be entrants.

EF Hutton is the sole underwriter and IPOs led by the firm over the last 12-month period have generated an average return of negative (64.7%) since their IPO. This is a bottom-tier performance for all major underwriters during the period.

The primary risk to the company’s outlook is the potentially long regulatory and uncertain process leading to an approval decision for each test.

When we learn more details about the IPO from management, I’ll provide a final opinion.

Expected IPO Pricing Date: To be announced.

Gain Insight and actionable information on U.S. IPOs with IPO Edge research.

Members of IPO Edge get the latest IPO research, news, and industry analysis.

Get started with a free trial!

This article was written by

Donovan Jones profile picture
Author of IPO Edge
Get IPO Edge with actionable research on next-generation high growth stocks

I'm the founder of IPO Edge on Seeking Alpha, a research service for investors interested in IPOs on US markets. Subscribers receive access to my proprietary research, valuation, data, commentary, opinions, and chat on U.S. IPOs. Join now to get an insider's 'edge' on new issues coming to market, both before and after the IPO. Start with a 14-day Free Trial.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This report is intended for educational purposes only and is not financial, legal or investment advice. The information referenced or contained herein may change, be in error, become outdated and irrelevant, or removed at any time without notice. You should perform your own research for your particular financial situation before making any decisions. IPO investing can involve significant volatility and risk of loss.

Recommended For You


To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.