Medical genetics company Invitae has agreed to acquire genomics company Genosity in a deal valued at around $200m.

The deal includes $120m in cash, as well as up to $80m in shares of Invitae common stock.

Genosity provides advanced software and laboratory solutions to facilitate the development and deployment of complex sequencing-based tests.

The acquisition will help add Genosity’s specialised capabilities to Invitae platform to boost the time to market and decentralisation of Invitae’s personalised oncology offerings, including somatic and germline offerings.

Genosity’s advanced suite enables to use next generation sequencing in oncology development and clinical care ranging from basic research to clinical testing for regulated studies.

At present, Genosity is working with Invitae on multiple projects and clinical trials.

Invitae chief medical officer Dr Robert Nussbaum said: “Our goal is to move as quickly as we can toward the day where each cancer patient receives timely, comprehensive genetic information that is used to guide their care from diagnosis to monitoring for disease recurrence.

“Together with Genosity, we believe our combined novel capabilities and capacity will help us reach that day sooner for patients around the globe.”

Invitae is also expected to benefit from Genosity in the development and launching of the company’s oncology products, which include three devices under development that have already secured breakthrough device designation from the US Food and Drug Administration (FDA).

The company is engaged in the development of Personalized Cancer Monitoring (PCM) platform as an in vitro diagnostic (IVD) intended for regulatory submission.

The PCM is said to study a patient’s unique genetic profile of their specific cancer and use it to monitor their blood to detect cancer recurrence early when it is most curable.

Upon securing approval, the PCM test will be complemented by Genosity technology and capabilities to distribute the test across the globe. In January 2020, Invitae secured breakthrough device designation from the FDA for PCM test.

Subject to customary closing conditions, the deal is expected to be completed in the second quarter of this year.

In March last year, Invitae acquired Diploid, a Belgian genomic diagnostics firm that develops tools for diagnosing rare diseases.