The acquisition of Inivata will enable NeoGenomics to boost its long term growth rate
NeoGenomics has agreed to acquire the remaining interest in commercial-stage liquid biopsy platform company Inivata for $390m.
In May last year, the company first announced a $25m minority equity investment in Inivata.
Based in Cambridge of England, Inivata offers InVision platform that helps to collect essential genomic information from a simple blood draw to guide and personalise cancer treatment, monitor response and identify relapse.
The company’s technology is based on research from the Cancer Research UK Cambridge Institute, University of Cambridge.
Inivata’s InVisionFirst-Lung is a ctDNA NGS liquid biopsy, which enables to test 37 genes relevant to the care of patients with advanced non-small-cell lung carcinoma (NSCLC).
The company is also offering the personalised RaDaR assay, which facilitates the sensitive detection of residual disease and recurrence. The assay already secured breakthrough device designation from the US Food and Drug Administration (FDA).
NeoGenomics CEO Mark Mallon said: “NeoGenomics has spent the better part of the last year working in partnership with the exceptional team of professionals at Inivata while conducting confirmatory due diligence on the business and its world-leading liquid biopsy platform technology.
“We are exercising our option to purchase Inivata eight months ahead of plan at what we believe is an attractive value in today’s M&A marketplace for liquid biopsy companies.”
Following the completion of the transaction, Inivata will become a liquid biopsy focused division of NeoGenomics.
The acquisition of Inivata will allow NeoGenomics to boost its long-term growth rate with increasing adoption of liquid biopsy for therapy selection and minimal residual disease (MRD) in the community setting over time.
Subject to satisfaction of certain customary closing conditions, the deal is expected to be completed in June this year.
Goldman Sachs is acting as an exclusive financial advisor to NeoGenomics for the deal, while Ropes & Gray is serving as its legal advisor.
Perella Weinberg Partners is acting as an exclusive financial advisor to Inivata.
In October 2018, NeoGenomic agreed to acquire clinical oncology laboratory Genoptix for $125m in cash.