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OncoCyte to buy Insight Genetics
Posted on Monday, 13 January 2020 12:43
California-headquartered OncoCyte has agreed to acquire Insight Genetics for USD 18.00 million to gain a potentially transformative immuno-oncology diagnostic test for the selection of therapy for patients suffering with cancer.
The buyer, which is a molecular diagnostics company, is paying USD 7.00 million in cash and a further USD 5.00 million in the form of common shares, with a potential USD 6.00 million earnout to be offered in either form if certain milestones are achieved.
Under the terms of the agreement, OncoCyte will fund a 10-year revenue stock of no more than 10.0 per cent of net collected revenues for current Insight Genetics pharma service offerings.
The company will issue the shares in a private placement and has agreed to register the scrips for resale.
Closing remains subject to approval by Insight Genetics’ security holders, among other conditions.
The target has a history of impactful discoveries in the areas of lung and breast cancer and has achieved ISO 9001 certification; it has a Clinical Laboratory Improvement Amendments-certified and College of American Pathology-accredited lab that performs and develops cancer tests.
Insight Genetics has a menu of relevant targeted therapeutic panels, including two emerging therapeutic targets.
Padma Sundar, senior vice president of marketing and market access at OncoCyte, cited a recent publication of the Journal of the American Medical Association as saying around 750,000 patients are eligible for immunotherapy treatments, representing a USD 2.20 billion total addressable market.
The acquiror is focused on improving patient outcomes by accelerating and optimising diagnosis and treatment.
Shares in OncoCyte closed up 6.4 per cent following the announcement to USD 2.65, equating to a market capitalisation of USD 160.47 million.
Zephyr, the M&A database published by Bureau van Dijk, shows there have already been 103 deals targeting research and development companies in the physical, engineering and life sciences sectors announced in the opening two weeks of 2020.
In the largest of these to date, Pharmaron Beijing has agreed to inject CNY 775.00 million (USD 111.98 million) into Pharmaron (Ningbo) Technology Development in exchange for a 70.5 per cent stake.
© Zephus Ltd