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Diagnostic Deals: A Roundup of the Key Mergers, Acquisitions, Alliances, Licenses and Other Strategic Transactions From the Past Month

Forget the lazy days of summer–lab companies have been moving forward with deals. Here’s a look at key activity from mid-July through the third week of August.

M&A
Roche acquired an additional 12.5 million shares of Foundation Medicine at $137 per share, valued at $1.72 billion, moving the company closer to its total purchase price of $2.4 billion. When the deal closes, Foundation Medicine will become a wholly-owned subsidiary of Roche.
Another notable deal was the closing of Myriad Genetics’ acquisition of Counsyl. In addition to the M&A deals listed in the chart, there were three new strategic product and technology asset acquisitions worth noting:

  • Svar Life Science, formerly Euro Diagnostica, agreed to transfer its radioimmunoassay portfolio and Neolisa chromogranin A ELISA assay to Diasource ImmunoAssays;
  • Waters acquired the exclusive rights to Prosolia’s desorption electrospray ionization technology for mass spectrometry applications; and
  • Interspace Diagnostics acquired most of the equipment from the Philadelphia laboratory of Rosetta Genomics, which filed for bankruptcy in June.

Strategic Alliances
Exact Sciences and Pfizer agreed to copromote Exact’s Cologuard colorectal cancer screening test Cologuard. Wall Street liked the news as shares of Exact soared on the announcement.

Meanwhile, 23andMe made a four-year deal making GlaxoSmithKline its sole drug discovery collaborator.

The period was also notable for new alliance activity in Asia, including:

  • Oxford BioDynamics’ strategic alliance with GL Capital Group to help it establish a footprint in China;
  • Genetic Technologies’ partnering with Zishan Health Consultancy to facilitate expansion into the Chinese market;
  • Clearbridge Health Limited’s exclusive partnership with Hunan, China-based Agen Medicine Laboratory Technology Company.
  • Qiagen’s non-exclusively collaboration with SRL, the largest clinical testing lab in Japan.

Here’s a summary of key diagnostic deals from mid-July through the third week in August:

MERGERS, ACQUISITIONS & ASSET SALES
Acquiring Company Target(s) Deal Summary
Roche Foundation Medicine
  • Price: $2.4 billion cash
  • Status: Roche acquires 12.5 million shares it didn’t own at $137 per share at end of July with deal to be consummated by subsequent merger
  • Foundation Medicine to become wholly-owned subsidiary of Roche after merger
Myriad Genetics Counsyl
  • Price: $375 million
  • Status: Closing of deal announced in May
  • Counsyl’s reproductive health tests to be made part of business unit called Myriad Women’s Health targeting Ob/Gyns and reproductive healthcare provider
  • Myriad’s women’s health sales force to be combined with Counsyl’s sales reps
Hologic Faxitron Bioptics
  • Price: $85 million
  • Status: Closed
  • Acquisition of specimen radiography firm expands Hologic’s portfolio of breast health products
Caprion Biosciences Primity Bio
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of biomarker and immune monitoring firm expands Caprion’s own immunology and molecular profiling business
Tecan NuGen
  • Price: $54.5 million cash
  • Status: To close before end of 2018
  • Tecan moves into genomics market by acquiring NuGen’s sample prep kits for next-generation sequencing and microarrays
Bio-Techne Exosome Diagnostics
  • Price: Up to $575 million, $250 million upfront and $325 contingent
  • Status: Closed
  • Bio-Techne to leverage Exosome’s technology to interpret complex gene expression data and find early predictors of disease progression
Diagenode Nxt-Dx
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of Belgian epigenetics service provider expands Diagenode’s epigenomics services platform and epigenetic biomarker discovery efforts
STRATEGIC ALLIANCES, PARTNERSHIPS & COLLABORATIONS
Partner 1 Partner 2 Deal Summary
Exact Sciences Pfizer
  • Objective: Co-promote Exact’s Cologuard colorectal cancer screening test
  • Dynamic: Exact to retain full responsibility for Cologuard manufacturing and lab
  • Pfizer to participate in marketing, pay part of marketing expenses and get 50% share of gross profits above agreed upon baseline
PerkinElmer Agena Bioscience
  • Objective: Create low-cost, sample-to-result workflow targeting circulating tumor DNA for liquid biopsy applications that can be completed in one day
  • Dynamic: Combine PerkinElmer’s LabChip GX Touch nucleic acid analyzer for DNA quality assessment and quantitation with Agena’s MassArray system workflow
Natera Fox Chase Cancer Center
  • Objective: Evaluate Natera’s Signatera circulating tumor DNA assay for kidney cancer recurrence
  • Dynamic: Parties to use the assay and next-generation sequencing to analyze specimens of 49 kidney cancer patients
23andMe GlaxoSmithKline
  • Objective: New drug discovery
  • Dynamic: Four-year deal + GSK option to extend to fifth year
  • GSK to be 23andMe’s exclusive drug discovery collaborator
  • Each side to contribute 50% of initial funding
HTG Molecular Diagnostics Oncologie
  • Objective: Help Oncologie develop biomarkers for its immuno-oncology drug candidates
  • Dynamic: Oncologie to use HTG’s NGS-based molecular profiling instruments, assays and lab services to develop new cancer drugs
Oxford BioDynamics GL Capital Group
  • Objective: Get Oxford into China market
  • Dynamic: GL Capital to find partners for Oxford’s epigenetic biomarkers and technology in mainland China
  • GL Capital also gets 5% equity stake in UK-based Oxford and a seat on its board
Genetic Technologies Beijing Zishan Health Consultancy
  • Objective: Get Genetic Technologies into China market
  • Dynamic: Create 50/50 joint venture to offer Genetic Technologies’ genomic tests in mainland China
  • Zishan to handle sales, account management, marketing and promotion of tests and act as a liaison between the firm and the China FDA
Orig3n ZhongAn Online P&C Insurance
  • Objective: Sell health tech solutions in China
  • Dynamic: ZhongAn to use Orig3n’s genetic tests to supplement its online insurance offerings
  • Sides also to create new lab in Shanghai
Clearbridge Health Limited Agen Medicine Laboratory Technology Company
  • Objective: Get Clearbridge’s into China market
  • Dynamic: Agen to market Clearbridge’s ClearCell FX1 System for circulating tumor cell enrichment in China
Qiagen SRL
  • Objective: Develop companion diagnostic tests for new drugs for Japanese market
  • Dynamic: SRL to use Qiagen workflows in its efforts to seek regulatory approval for new drugs by Japan’s Pharmaceutical and Medical Devices Agency
Qiagen Hamilton Robotics
  • Objective: Improve processing of Qiagen’s QuantiFeron-TB Gold Plus (QFT-Plus) test
  • Dynamic: Integrate Hamilton’s Microlab Star automated liquid-handling workstation into QFT-Plus workflow
Qiagen The Scientific Group (TSG)
  • Objective: Expand Qiagen’s presence in African market
  • Dynamic: TSG to be Qiagen’s exclusive commercial partner for Africa other than South Africa, Morocco, Algeria, Libya, Tunisia, Egypt, Sudan and Eritrea
Exagen Diagnostics CareFirst BlueCross BlueShield
  • Objective: Evaluate Exagen’s Avise Lupus test for differential diagnosis of systemic lupus erythematosus (SLE)
  • Dynamic: CareFirst to make test available to its members to aid in SLE diagnosis, and collaborate on an exploratory study of how the test’s results impact primary care physician practice referral patterns
GeneNews LifeX
  • Objective: Boost use of GeneNews’ biopsy cancer tests by large, multi-entity healthcare systems
  • Dynamic: Parties will also work to further develop and market Aristotle platform
Genedrive Foundation for Innovative New Diagnostics (FIND)
  • Objective: Evaluate Genedrive’s hepatitis C Virus ID Kit
  • Dynamic: FIND to lead evaluation studies on assays in Cameroon and Georgia with Genedrive to provide product in-kind support
Chembio Diagnostics Foundation for Innovative New Diagnostics (FIND)
  • Objective: Expedite feasibility testing of a rapid diagnostic test for hepatitis C virus (HCV)
  • Dynamic: Chembio to use its DPP technology platform for testing of a rapid HCV core antigen assay
Shivom eMQT
  • Objective: Sequence the genomes of 1,000 sickle-cell disease patients in sub-Saharan Africa
  • Dynamic: eMQT to collect and store data on 100 patients on Shivom platform
  • If proof-of-concept study is successful, database will be expanded to 1,000 patients
Mapmygenome Digital DNAtix (DD)
  • Objective: Enhance security and privacy of Mapmygenome’s direct-to-consumer genetic tests
  • Dynamic: Leverage DD’s blockchain technology allowing researchers to access anonymous data for platform supporting Mapmygenome’s genome testing, analysis and related personalized medicine services
Sonic Healthcare USA ProMedica Health System
  • Objective: Improve laboratory services in Ohio, Michigan and Indiana
  • Dynamic: Create Toledo-based joint venture called ProMedica Pathology Laboratories that combines ProMedica’s inpatient and outreach lab testing capabilities with Sonic’s esoteric testing capabilities
10X Genomics BioLegend
+
Immudex
  • Objective: Use 10X barcoding technology to measure gene and protein expression at single-cell level
  • Dynamic: 10X and BioLegend to co-engineer latter’s TotalSeqB and TotalSeq C products to work with 10X’s single cell products and Feature Barcoding Technology
  • 10X to combine its barcoding technology with Immudex’s Dextramer product
InterSystems Rhodes Group (subsidiary of TriCore Reference Laboratories)
  • Objective: Support TriCore’s Clinical Lab 2.0 initiative to use lab data to improve patient health care
  • Dynamic: Rhodes Group to use InterSystems’ HealthShare to create and manage unified views of patient data
Beckman Coulter US Arkray
  • Objective: Launch iQ Urinalysis Workcell
  • Dynamic: Beckman to exclusively market the product which combines Beckman Coulter’s Iris iQ200 Digital Flow Morphology system and the Arkray Aution Max Ax-4030 fully automated analyzer, in US
Lucence Diagnostics National Cancer Center Singapore (NCCS)
  • Objective: Improve genetic testing for breast and gynecological cancers in Asian women
  • Dynamic: Research study leveraging NCCS database of genomic variants with Lucence’s expertise in DNA sequencing and genomic data analysis
Ibex Medical Analytics University of Pittsburgh Medical Center (UPMC)
  • Objective: Validate Ibex’s AI-based prostate cancer diagnostic system
  • Dynamic: Use Ibex’s Second Read system, which uses AI and machine learning to identify cell types and features in images of prostate core needle biopsies, on samples collected by UPMC
Biocept UCSD Moores Cancer Center
  • Objective: Evaluate effectiveness of Biocept’s Target Selector liquid biopsy assays in predicting cancer recurrence and treatment response
  • Dynamic: Studies will use Biocept’s technology to search for circulating tumor cells and circulating tumor DNA, comparing results with CT or PET scan findings
DISTRIBUTION, SALES & MARKETING AGREEMENTS
Property Owner Distributor Deal Summary
EKF Diagnostics Holdings McKesson Medical-Surgical
  • Product: EKF’s DiaSpect Tm reagent-free hemoglobin analyzer
  • Territories: US
  • Excusive
Sienna Cancer Diagnostics Shaanxi GaoYuan Shaanxi GaoYuan
  • Product: Sienna’s in vitro diagnostic for detection of the hTERT component of telomerase, a biomarker that aids in diagnosis of bladder cancer
  • Territory: Mainland China
  • Exclusive
Curetis Future Horizon Scientific
  • Products: Curetis’ Unyvero system tests for pneumonia, implant and tissue infections, bloodstream infections, intra-abdominal infections and urinary tract infections
  • Territories: Egypt
  • Exclusive
Curetis Biko
  • Products: Curetis’ Unyvero system tests for pneumonia, implant and tissue infections, bloodstream infections, intra-abdominal infections and urinary tract infections
  • Territories: Uruguay
  • Exclusive
Curetis Quimica Valaner
  • Products: Curetis’ Unyvero system tests for pneumonia, implant and tissue infections, bloodstream infections, intra-abdominal infections and urinary tract infections
  • Territories: Mexico
  • Exclusive
Streck Cromoion SRL
  • Products: Streck’s controls, cell stabilization. and molecular products
  • Territories: Argentina
  • Exclusive three-year deal
HalioDx Pronto Diagnostics
  • Product: HalioDx’s Immunoscore colon cancer assay
  • Territory: Israel
Genetic Technologies Swisstec Health Analytics
  • Product: Genetic Technologies’ genetic screening tests
  • Territory: Asia
  • Genetic Technologies gets 5% equity stake in Swisstec + 5% more if milestones are reached
Namocell MDxK
  • Product: Namo Single Cell Dispenser tool
  • Territory: South Korea
Namocell Bioké
  • Product: Namo Single Cell Dispenser tool
  • Territories: Belgium, Netherlands, Luxembourg
Advanced Instruments Sysmex America
  • Product: Advanced Instruments’ GloCyte automated cerebrospinal fluid (CSF) cell counter system
  • Territories: US, Canada, Latin America
  • Exclusive
Lucence Diagnostics Bangkok Molecular Genetics
  • Products: Lucence’s blood-based cancer diagnosis and screening tests
  • Territory: Thailand
LICENSES
Licensor Licensee Deal Summary
MDNA Life Sciences LabCorp
  • Property: MDNA’s noninvasive prostate cancer test
  • LabCorp gets exclusive right in US to use MDNA’s technology to develop and commercialize a test measuring prostate cancer risks of patients with an elevated PSA
SUPPLY, SERVICE & TESTING AGREEMENTS
Supplier/Servicer Client/User Deal Summary
Dynex Technologies Zeus Scientific
  • Supply agreement under which Dynex’s automated ELISA instruments will be sold globally
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