Funding values genetics company 23andMe at $1.1 billion

(Reuters) - Genetics company 23andMe on Wednesday said it raised $115 million in new venture capital funding, which implies a total value for the company of $1.1 billion, according to a source familiar with the Silicon Valley-based company.

The series E financing was led by Fidelity Management & Research Co. Other new investors included Casdin Capital, WuXi Healthcare Ventures and Xfund. Existing investors including Illumina Inc ILMN.O, New Enterprise Associates, MPM Capital, and Google Ventures GOOGL.O also participated.

23andMe said the funding will enable expansion of operations and maximize the potential of its direct-to-consumer product in the United States and abroad.

The company said it plans to launch by the end of this year a new “user experience” that includes carrier status reports for U.S. customers, as well as enhanced tools and functionality. The additional financing will also be used for new laboratory space for drug research and other investments.

The U.S. Food and Drug Administration in 2013 barred Mountain View, California-based 23andMe from marketing a saliva collection kit and personal genome service designed to identify a range of health risks including cancer and heart disease, saying it had not received marketing clearance. But earlier this year, the FDA approved 23andMe’s direct-to-consumer genetic test for a mutation that can cause children to inherit Bloom syndrome, a rare disorder that leads to short height, an increased risk of cancer and unusual facial features.

Reporting By Deena Beasley; Editing by David Gregorio