Cancer-focused genetic testing services provider NeoGenomics has agreed to acquire clinical oncology laboratory, Genoptix, for $125m in cash.
Image: NeoGenomics to acquire clinical oncology laboratory Genoptix. Photo: courtesy of rawpixel / Unsplash.
Under the deal, Genoptix will also secure one million shares of NeoGenomics common stock.
Located in Carlsbad of California, Genoptix is specialized in hematology and solid tumor testing and has more than 400 staff.
Genoptix offers personalized and comprehensive diagnostic services to hematologists, oncologists and pathologists.
The clinical oncology laboratory offers diagnostic services for bone marrow, blood, and lymph nodes, as well as molecular testing of solid tumors.
Through an integrated approach to case management, Genoptix delivers individualized and actionable results for each patient, facilitating referring physician with better treatment decisions.
The acquired business will add NeoGenomics with a broad portfolio of managed care and GPO contracts, and national laboratory infrastructure
In September this year, Genoptix has launched FDA-authorized BCR-ABL MRDx TFR monitoring test for patients with chronic myeloid leukemia (CML) being treated with Tasigna (nilotinib).
The BCR-ABL MRDx TFR monitoring test is claimed to be the only diagnostic test authorized by the FDA to manage patients on tyrosine kinase inhibitors.
Leerink Partners is serving as the exclusive advisor to NeoGenomics and K&L Gates as legal counsel, while William Blair and Company is serving as the exclusive advisor to Genoptix, and Paul Hastings as legal counsel.
NeoGenomics chairman and CEO Douglas VanOort said: “The acquisition of Genoptix enhances NeoGenomics’ leadership in the oncology test market, significantly expanding our coverage of oncology practices, increasing our customer reach and leaving us better positioned for growth.
“With what we believe to be the most comprehensive oncology test menu in the country and reach across all distribution channels, the combined company will be uniquely positioned in the oncology test market.”
Based in Fort Myers of Florida, NeoGenomics is specialized in providing cancer genetic testing and information services.
The company has a pharma services division, which provides services to pharmaceutical clients in clinical trials and drug development.
NeoGenomics customers include pathologists, oncologists, academic centers, hospital systems, pharmaceutical firms, integrated service delivery networks, and managed care organizations across the US.