Genomic diagnostics company Veracyte has agreed to acquire US-based commercial-stage precision oncology company Decipher Biosciences in a deal valued at around $600m.

The deal includes $250m in cash and up to $350m in stock consideration, subject to customary purchase price adjustments.

Based in San Diego of California, Decipher provides a portfolio of tests for patients with urologic cancers.

The company’s tests leverage whole transcriptome analysis and advanced machine learning algorithms to enhance patient decision-making across the clinical care continuum and boost the adoption of new therapies.

Decipher Prostate is the company’s novel prostate cancer genomic test, which offers significant information regarding the underlying biology of a patient’s tumour.

Decipher Bladder test is expected to be commercially available in 2021, while the company’s kidney cancer test is currently under development.

Decipher’s advanced facilities in Southern California and its team will also be included in Veracyte, as part of the deal.

Veracyte to expand its genomic cancer diagnostics market presence 

The acquisition of Decipher will allow Veracyte to expand its presence in the genomic cancer diagnostics market while boosting revenue growth.

Decipher GRID, a large urologic cancer database, is expected to help Veracyte to boost its extensive biorepositories for the advancement of its biopharmaceutical company partnerships and its pipeline development efforts.

Veracyte chairman and CEO Bonnie Anderson said: “By combining Decipher Biosciences’ leadership in urologic cancers with our comprehensive genomic testing menu, Veracyte will be able to serve patients across the clinical care continuum in 7 of the 10 most prevalent cancers in the United States with highly differentiated and clinically impactful tests, significantly accelerating revenue growth and driving shareholder value.

“Further, with our best-in-class nCounter diagnostics platform, we are well-positioned to deliver comprehensive genomic cancer testing to physicians and their patients worldwide.”

Subject to regulatory approval and the satisfaction of other customary conditions, the deal is expected to be completed by the end of May this year.

Based in South San Francisco of California, Veracyte offers advanced genomic tests for lung cancer, breast cancer, thyroid cancer and interstitial lung diseases. The company’s lymphoma subtyping test is currently under development.

In September 2020, Veracyte initiated a European clinical trial, dubbed PROCURE, to evaluate the usage of genomic tests in the treatment of breast cancer.