13D Filing: Discovery Group I, LLC and Foundation Medicine Inc. (FMI)

Page 4 of 7 – SEC Filing

Item 1. Security and Issuer
This Amendment No. 1 to Schedule 13D (“Amendment No. 1”) relates to the Common Stock, par value $0.0001 per share (the “Common Stock”), of Foundation Medicine, Inc., a Delaware corporation (the “Company”), which has its principal executive offices at 150 Second Street, Cambridge, MA 02141. This Amendment No. 1 amends and supplements, as set forth below, the information contained in items 1, 3, 5 and 6 of the Schedule 13D filed by the Reporting Persons with respect to the Company on January 30, 2017 (the “Schedule 13D”). All capitalized terms used herein but not defined herein have the meanings set forth in the Schedule 13D. Except as amended by this Amendment No. 1, all information contained in the Schedule 13D is, after reasonable inquiry and to the best of the Reporting Persons’ knowledge and belief, complete and correct as of the date of this Amendment No. 1.
Item 3. Source and Amount of Funds or Other Consideration

Item 3 of the Schedule 13D is hereby amended
to read in its entirety as follows:

The total purchase price for the 1,509,068
shares of Common Stock beneficially owned by the Reporting Persons as of May 3, 2017 was approximately $28,965,984. The source
of such funds was the assets of Discovery Equity Partners and a private investment trust (collectively, the “Investors”)
over which Discovery Group exercises discretionary investment management authority, including proceeds of margin loans under margin
loan facilities maintained in the ordinary course of business by the Investors with a broker on customary terms and conditions.
The Investors are the legal owners of all of the Common Stock beneficially owned by Discovery Group.

Item 5. Interest in Securities of the Issuer

Item 5 of the Schedule 13D is hereby amended
to read in its entirety as follows:

The information concerning percentages of ownership
set forth below is based on 35,633,021 shares of Common Stock outstanding as of April
21, 2017
in the Company’s Proxy Statement for its 2017 Annual Meeting of Stockholders as filed with the Securities
and Exchange Commission on April 28, 2017.

Discovery Equity Partners beneficially owns
1,509,068 shares of Common Stock as of May 3, 2017, which represents 4.2%
of the outstanding Common Stock.

Discovery Group beneficially owns 1,509,068
shares of Common Stock as of May 3, 2017, which represents 4.2% of the outstanding
Common Stock.

 

Discovery
Group is the investment manager of each of the
Investors. Discovery Group exercises
ultimate voting and dispositive power of the securities held by the Investors. As a consequence, Discovery Group may be deemed
to share beneficial ownership of all of the shares of Common Stock owned by both of the Investors, while Discovery Equity Partners
shares beneficial ownership with Discovery Group of only the shares of Common Stock owned by it. Voting and disposition decisions
at Discovery Group with respect to the investment of such securities are made by a five-person investment committee (the “Committee”)
which makes such investment decisions by majority vote. No member of the Committee may act individually to vote or sell shares
of Common Stock held by either of the Investors, nor does any such member have a veto right concerning the vote or sale of any
such common stock. Accordingly, no individual member of the Committee is deemed to beneficially own, and each individual member
of the Committee expressly disclaims beneficial ownership of, within the meaning of Rule 13d-3, any shares of Common Stock held
by the Investors solely by virtue of the fact that he or she is a member of the Committee.

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