AD PathLabs Raises $9M for Expansion
By VITA REED
AD PathLabs Corp., a Newport Beach-based tissue testing company, raised $8.9 million in venture funding.
Pacific Venture Group, with offices in Irvine, Encino and the Bay area, led the funding. Other investors include Irvine-based Forrest Binkley & Brown Capital Partners, Cincinnati’s Blue Chip Venture Co., existing angel investors and managers.
AD PathLabs provides testing and other services to cancer doctors, hospitals and outpatient centers. It plans to use the money to get its computer system in hospitals and other facilities, hire senior managers and open new laboratories, said Charles Madden, AD PathLabs’ founder and chief executive.
The funding brings AD PathLabs’ total raised to $12.9 million, he said.
AD PathLabs’ current run rate works out to about $5 million, Madden said.
“We’re growing rapidly and we will be profitable by the end of the second quarter,” he said.
Going public is some years off, said Madden, who estimates the latest funding should last two years.
AD PathLabs formed in 1999 and has operated since September 2001. The company’s 30 hospital clients include Catholic Healthcare West. Much of AD PathLabs’ work is outside Orange County, including in Los Angeles and the Inland Empire, Madden said.
AD PathLabs counts 65 workers, most at its main lab in El Monte. Seven people work out of the company’s Newport Beach headquarters, Madden said.
