Nanosphere was founded in 1999 by Dr. Robert Letsinger and Dr. Chad Mirkin and went public in 2007 (NASDAQ: NSPH). In 2004, MIT technology reports “a powerful but cheap nanotech tool available this year could test for everything from genetic diseases to heart-attack signs.”
Mirkin says that the Nanosphere technology is orders of magnitude more sensitive than other detection techniques, as well as fast and accurate. What’s more, the technology detects DNA or proteins directly, does not require expensive and time-consuming preparation of blood samples, and can test for multiple targets at once. “It will completely change the way the world looks at diagnostics, he says. “I’m very confident that we’re going to see a lot of new diagnostic tools come out of this.”
However, 12 years after this statement and 17 years since foundation, the company is still to make a profit. It has been able to raise and spend huge amounts of money. Not being a financial expert myself, I can’t quite work out the total, but it is probably close to ten times the value it has been sold today. An article last year, entitled “Things are not well at Nanosphere” reported that the company had “burned through $412.5 million since inception”.
The difficulties of the company, visible for all for example in the evolution of the share prices since 2007 (above), have not led to any nuance in the enthusiastic celebration of Mirkin as a genius entrepreneur leading the way in the translation of nanotechnology into healthcare. Mirkin also benefitted directly through consultancy fees from 2005 to 2013 ($100k per year 2008-2013) and a 2010 news article reports that “while profits have been elusive, Nanosphere has paid off for Mr. Mirkin, who owned 840,000 shares as of this spring, or $2.5 million worth, although the stock has sagged lately…“.
Future will tell how much an important contribution to diagnostic the Spherical Nucleic probes of Nanosphere (now Luminex) will make.
At least, for the moment, it is a better outcome than another Mirkin-founded company, NanoInk.
Update: see reporting by John Pletz from Chicago Business