RUTHERFORD, N.J.—DNA-based diagnostics company Cancer Genetics, Inc., which specializes in the development of genomic-based oncology tests and services, has signed a non-binding Letter of Intent to acquire privately held Gentris Corporation for approximately $4.75 million, which will consist of $3.25 million in cash and $1.5 million in Cancer Genetics stock, as well as additional performance-based earn outs of up to $1.5 million.
“Gentris has world class expertise in pharmacogenomics that will be highly complementary to our existing oncology diagnostic business,” Panna Sharma, CEO of Cancer Genetics, said in a press release. “We view this acquisition as part of our long-range strategic plan to deepen our capabilities in developing unique and individualized treatment insights in oncology. Gentris will add immediate incremental revenue and, through its established client base and relationships, will give us tremendous access to the biotech and pharmaceutical communities.”
Under the terms of the Letter of Intent, it is expected that Gentris will be fully integrated in to Cancer Genetics, with more than 40 of Gentris’ employees, including its founder, to become employees of Cancer Genetics. Michael P. Murphy, M.Sc., one of the founders of Gentris and a member of its board of directors, will service as general manager during the integration of the Raleigh, N.C. facility, while Dr. Howard McLeod, a Gentris board member and director, will take a place on Cancer Genetics’ Scientific Advisory Board.
“By combining our expertise with Cancer Genetics, we expand the opportunity to service the large, global pharmaceutical companies that already are our customers and also bring together the analysis of somatic and germline genetic changes that drive cancer growth and treatment response,” Tim Gupton, chairman and board member of Gentris, commented in a statement.
The transaction will be conducted as an asset purchase and is expected to close in the third quarter of this year, subject to the negotiation and execution of a definitive acquisition agreement, customary closing conditions and government approvals.
Gentries offers pharmacogenomics, genotyping and biorepository services for the pharmaceutical and biotech industries, partnering with pharmaceutical, academic and technology organizations to help incorporate pharmacogenomics into their drug development and clinical trial programs. The company is based in North Carolina and is expanding into China with the creation of a U.S. Food and Drug Administration-compliant satellite laboratory in Zhangjiang Hi-Tech Park, in Shanghai, China
“Once we complete the Gentris acquisition, and the previously announced BioServe India acquisition, Cancer Genetics will have approximately 60,000 square feet of state-of-the-art lab space that can serve the needs for oncology focused patient testing and biophamra trials globally. This global footprint will allow us to partner with biotech and pharma customers and access innovations through a network of global collaborations and development initiatives,” added Sharma.
This is Cancer Genetics’ second acquisition in as many months, as the company announced on May 15 that it had struck an agreement to acquire BioServe Biotechnologies (India) Pvt. Ltd. for roughly $1.9 million. That amount will be paid primarily in Cancer Genetics stock and other deferred consideration, and is expected to close during the third quarter of this year.
SOURCE: Cancer Genetics, Inc. press release