Myriad announces $270M acquisition of Crescendo Bioscience
Acquisition will provide Myriad with Vectra DA, Crescendo's rheumatoid arthritis assessment test
SALT LAKE CITY—Myriad Genetics, Inc. has announced the establishment of a definitive agreement to acquire autoimmune diagnostics leader Crescendo Bioscience, Inc. Myriad will acquire the South San Francisco, Calif.-based company for $270 million in cash, a figure that will be reduced by $25 million for the repayment of a loan made to Crescendo and customary adjustments in accordance with the acquisition agreement. The companies expect the transaction to be complete before the end of the 2014 fiscal year, with the acquisition subject to customary closing conditions and regulatory approvals.
Following the closing of the transaction, Crescendo Bioscience will retain its name and become a wholly owned subsidiary of Myriad. Myriad expects Crescendo to provide significant operating profits going forward, with the transaction expected to be accretive to earnings beginning in the 2016 fiscal year.
“Crescendo has built a strong and growing position in the rheumatoid arthritis diagnostic market, and I believe Myriad will enable us to move to the next level in terms of scale and growth,” William Hagstrom, president and CEO of Crescendo Bioscience, commented in a statement. “We envision multiple opportunities over the next several years where, as a combined company, we can expand our presence into international markets and provide new innovative products that help improve the lives of patients suffering from autoimmune diseases.”
The transaction provides a number of benefits for Myriad, including providing a foothold in the autoimmune market. Crescendo’s lead product, Vectra DA, is a quantitative, protein-based test for the routine assessment of rheumatoid arthritis disease activity, and is complemented by VectraView, software that provides physicians with a comprehensive overview of patients’ level of disease activity, and MyRA, a patient tracking and communications tool. As some 1.5 million people suffer from rheumatoid arthritis in the United States alone, and roughly 2 million in Europe, Vectra DA is thought to have a potential global market opportunity of $3 billion.
“Crescendo Bioscience fits well into our diagnostic portfolio that is focused on saving lives and improving the quality of life of patients across major diseases,” Peter D. Meldrum, president and CEO of Myriad Genetics, said in a press release. “Crescendo has pioneered protein-based diagnostics for monitoring disease activity in patients with rheumatoid arthritis, and this acquisition diversifies our business into a new high-growth, multibillion-dollar market opportunity. We are pleased to welcome the 130 employees of Crescendo to the Myriad team and look forward to the impact of this innovative and dedicated group on our organization.”
Myriad Genetics enlisted JP Morgan Securities LLC as its financial advisor for the transaction, with Mintz Levin Cohn Ferris Glovsky and Popeo PC serving as legal counsel.
SOURCE: Myriad press release