Industry Buzz: PDI Acquires RedPath Integrated Pathology

New Jersey-based PDI has acquired RedPath Integrated Pathology, a Pittsburgh-based firm that specializes in developing tests that focus on diagnosing and managing gastrointestinal cancers. The deal will give PDI exclusive rights over one test that RedPath has already developed, PathFinderTG. It determines the risk among patients of developing cancer for pancreatic cysts, which generates about $10 million a year in revenue, officials said. “PDI’s deep go-to market expertise and commercialization infrastructure can deliver the resources needed for the development and promotion of this innovative technology,” said Dennis Smith, M.D., RedPath’s chief executive officer. Another test RedPath has in the late stages of development will assess the cancer risk for Barrett’s Esophagus, a tissue change that usually occurs in people who suffer from chronic gastroesophageal reflux disorder, or GERD. Although Barrett’s Esophagus raises the risk for developing esophageal cancer, the risk has not been specifically quanified in individual patients. About 45,000 Americans are diagnosed with pancreatic cancer every year, and another 37,000 die from the disease. “The PathFinderTG testing platform has tremendous untapped potential to deliver a much-needed improvement in diagnostic options for oncologists, gastroenterologists, pathologists, and patients—particularly in pancreatic cancer and other gastrointestinal-related cancers,” said Nancy Lurker, PDI’s chief executive officer. “This acquisition further demonstrates PDI’s commitment to building a growth-oriented portfolio of proprietary molecular diagnostics that serves unmet medical needs in the oncology space.” RedPath will operate as part of the PDI subsidiary Interpace Diagnostics. PDI paid $12 million in up-front cash for RedPath and an $11 million four-year subordinated note. The deal also includes future payments based on reaching specific performance milestones and revenue. Takeaway: PDI’s acquisition of RedPath is expected to ramp up the visibility of its pancreatic cancer testing platform.