The agreement builds on successful negotiations between New Day and Epigenomics and follows the US-based diagnostics company’s recent merger with EDP Biotech, a medical device company focused on immunodiagnostic tests
Epi proColon colorectal cancer detection assay. (Credit: Epigenomics AG)
US-based New Day Diagnostics has agreed to acquire Epigenomics, a German molecular diagnostics company focused on early detection of cancer, for a total consideration of up to $12m.
The agreement builds on successful negotiations between New Day and Epigenomics.
Also, the deal follows the US-based diagnostics company’s recent merger with EDP Biotech, a medical device company focused on immunodiagnostic tests.
Under the terms of the agreement, New Day Diagnostics will acquire all of Epigenomics’ assets and intellectual property, in exchange for $1.8m in cash payments.
The US company will pay up to $8m in cash, contingent on achieving certain milestones related to Epi proColon and in particular Epi proColon Next-Gen.
Epigenomics will receive a 3% shareholding in New Day Diagnostics, valued at $2.25m.
Also, the German diagnostics company will receive license payments and earn-out payments, in the form of royalties on sales of Epi proColon Next-Gen, until October 2043.
New Day Diagnostics CEO Eric Mayer said: “We began a mission nearly two decades ago to drive accessibility of cost-effective early detection products.
“The addition of Epi proColon expands the company portfolio to include a much-needed non-invasive CRC screening test that is both affordable and convenient.
“And we are excited to explore additional possibilities for the methylated DNA biomarker in improving patient outcomes for other indications.”
New Day Diagnostics said that the acquisition would add unique biomarker technology for the detection of methylated DNA in various cancer indications, including Epi proColon.
Epi proColon is a screening tool designed for the non-invasive detection of colorectal cancer.
Also, the acquisition would expand its portfolio in the cancer diagnostics space, said the US-based diagnostics company.
TCB Capital Advisors, an affiliate of Weild & Co., served as the exclusive financial advisor, Brock Shipe Klenk, Orrick Herrington and Sutcliffe, and Merchant and Gould served as legal advisors to New Day Diagnostics on the transaction.
Epigenomics executive Jens Ravens said: “There is a great deal of strategic alignment between our companies. Because of this, I feel confident that the best of our products and biomarker technology will move into the next chapter of bringing a blood-based colorectal cancer diagnostic to the market that is both affordable and accessible.”