ACQUISITIONS

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

Amid back to school season, companies were back to making diagnostic deals. Here’s a recap of the key activity from mid-August through the third week of September. 

M&A and Asset Sales
This month, Proteomics International, based in Australia, agreed to sell back its shares in CPR Pharma Services for A$928,399 ($666,000) in cash. Earlier this year, the two companies entered into a strategic alliance focused on clinical trials and related research. As part of the deal, Proteomics acquired 10% of CPR’s share capital in exchange for 4 million of its shares.

M&A highlights for this period include Qiagen’s acquisition of NeuMoDx for $224 million. The merger agreement gives Qiagen the right to acquire the remaining 80% of NeuMoDx it doesn’t currently own.

Additionally, within the last few weeks, Thermo Fisher Scientific agreed to acquire Becton Dickinson’s Advanced Bioprocessing business for an undisclosed amount. The deal, expected to close in early 2019, will allow Thermo Fisher to integrate Advanced Bioprocessing into its life sciences solutions segment.

Strategic Alliances
Quite a few new alliances were announced this past month, including a strategic venture between Predicine and Flagship Biosciences that will combine Predicine’s GeneRADAR molecular insights platform with Flagship’s artificial intelligence-enabled cTA digital pathology, allowing for complementary and comprehensive biomarker profiling to empower clinical trials in the immuno-oncology (IO) space.

Two companies, Fluidigm and Evotec, each entered into multiple alliances. (See the chart below for details.)

In addition to all the new partnerships, there were also a few breakups like Quanterix’s decision to terminate its 2012 license agreement with BioMérieux for commercialization of Quanterix’s Simoa immunoassay technology for in vitro diagnostic purposes. Quanterix regains control of its intellectual property as a result of the termination.

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

MERGERS, ACQUISITIONS & ASSET SALES
Acquiring Company Target(s) Deal Summary
Qiagen NeuMoDx
  • Price: $234 million
  • Status: Merger agreement signed giving Qiagen right to acquire remaining 80% of NeuMoDx it doesn’t currently own
  • Merger accompanied by strategic alliance under which Qiagen to market NeuMoDx 288 (high-throughput) and NeuMoDx 96 (mid-throughput) systems in Europe and other markets outside US
Thermo Fisher Scientific Becton Dickinson’s Advanced Bioprocessing business
  • Price: Undisclosed
  • Status: Expected to close in early 2019
  • Thermo Fisher to integrate Advanced Bioprocessing into its life sciences solutions segment
10x Genomics Epinomics
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of Stanford Univ. startup to commercialize technology for mapping chromatin regions across the genome
Summit Health
(Quest Diagnostics wellness sub)
Hooper Holmes, dba, Provant Health
  • Price: $27 million  
  • Status: Stalking horse bid entered before and to be completed after bankruptcy auction in Oct.
  • Target filed for Chapter 11 after 2017 merger of Hooper Holmes and Provant Health left combined company with a working capital shortfall and over-leveraged balance sheet
Bruker Hain Lifescience
  • Price: Undisclosed
  • Status: Bruker to acquire 80% interest with 2021 option for remaining 20%
  • Bruker strengthens its tuberculosis and mycobacteria testing and human genetics capabilities by acquiring German molecular DX firm 
Canon Medical Systems ACTmed
  • Price: Undisclosed
  • Status: Closed
  • Canon acquires majority interest in Japanese joint venture between ACTmed and Taiwanese molecular DX firm ACT Genomics, including latter’s NGS technology
Cancer Genetics NovellusDx
  • Price: Undisclosed
  • Status: Merger agreement signed
  • CGI’s cancer test products to be combined with NovellusDx’s NGS and machine-learning cancer treatment response prediction technologies
Medicover Center for Human Genetics and Laboratory Diagnostics + IMGM Laboratories affiliate
  • Price: Undisclosed
  • Status: Expected to close in Jan 2019
  • Medicover acquires German labs known for genetic testing, pathology, transfusion medicine, microbiology and virology
Inscripta Solana Biosciences
  • Price: Undisclosed
  • Status: No closing date given
  • Acquisition boosts Inscripta’s efforts to commercialize its gene editing tools
STRATEGIC ALLIANCES, PARTNERSHIPS & COLLABORATIONS
Partner 1 Partner 2 Deal Summary
Predicine Flagship Biosciences
  • Objective: Offer integrated molecular and contextual tissue biomarker solution for immuno-oncology pharm customers
  • Dynamic: Combine Predicine GeneRADAR combined liquid biopsy assay with Flagship’s artificial intelligence-enabled cTA digital pathology platform
IDbyDNA  Fleury Group (Brazil)
  • Objective: Offer IDbyDNA’s Explify platform for clinical metagenomic testing in South America
  • Dynamic: Fleury to integrate Explify into its lab workflow to develop full suite of Explify-based clinical testing, starting with Explify Respiratory
Qiagen NeuMoDx
  • Objective: Commercialize NeuMoDx’s PCR-based molecular diagnostic systems
  • Dynamic: Qiagen to initially distribute the NeuMoDx 288 (high-throughput) and NeuMoDx 96 (mid-throughput) systems in Europe and other non-US markets
  • Parties also signed a companion merger agreement (see M&A above)
Natera Bristol-Myers Squibb
  • Objective: Determine if Natera’s circulating tumor DNA assay, Signatera, can identify non-small cell cancer patients who may benefit from BMS’s Opdivo (nivolumab) immunotherapy
  • Dynamic: BMS researchers to use Signatera to select patients with minimal residual disease to receive standard of care adjuvant therapy or adjuvant therapy plus Opdivo
Definiens Merck KGaA
  • Objective: Biomarker development
  • Dynamic: Merck’s to use Definiens’ web-based collaboration software platform to support its use of Definiens’ Tissue Phenomics image-analysis technologies for biomarker quantification including immuno-profiling
Celmatix Ferring Pharmaceuticals
  • Objective: Research women’s response to in vitro fertilization treatment
  • Dynamic: Use Celmatix’s knowledgebase to investigate whether a woman’s response to ovarian stimulation during IVF treatment is linked to genomic characteristics
Fluidigm Visiopharm
  • Objective: Comarket automated image analysis for imaging mass cytometry
  • Dynamic: Copromote Visiopharm’s Phenomap image-analysis software with Fluidigm’s Hyperion imaging system, MCD Viewer software and Maxpar antibodies and kits
Fluidigm  GenomOncology
  • Objective: Create Immuno-Oncology Gene Expression Workflow for developing checkpoint immunotherapies and identifying predictive biomarker signatures for therapeutic response
  • Dynamic: Combine Fluidigm Advanta Immuno-Oncology Gene Expression Assay with GenomOncology’s data analysis software
Prescient Medicine Metabiomics
  • Objective: Develop microbiome diagnostic assays for colon cancer
  • Dynamic: Use Metabiomics MultiTag NGS technology and microbiome analytics platform to develop stool-based test for precancerous colon polyps
  • Sides will also work together to develop diagnostics for other GI diseases including Crohn’s disease, colitis and irritable bowel syndrome
Novacyt Applied Microarrays (AMI)
  • Objective: Develop microarray-based SNP assays
  • Dynamic: Novacyt’s Primerdesign molecular testing division to help AMI design probes for customized SNP microarrays used in point-of-care and lab settings
BioArctic Brain Biomarker Solutions
  • Objective: Develop biomarkers and diagnostics for Alzheimer’s disease
  • Dynamic: Sides to identify and measure new blood- and cerebrospinal fluid-based biomarkers that can be used to diagnose and monitor the effects of investigational treatments for Alzheimer’s
  • Each side to bear its own costs, jointly own rights to resulting products and evenly split licensing revenues
MRM Proteomics Exactis Innovation
  • Objective: Develop proteomic test for guiding cancer immunotherapy
  • Dynamic: Use MRM’s immunoMALDI system to analyze breast and colorectal cancer samples in Exactis’ Personalize My Treatment patient registry to identify and validate protein markers predictive of patient response to cancer immunotherapies
Foundation Medicine Incyte
  • Objective: Develop and commercialize companion diagnostics
  • Dynamic: Start with a CDx for Incyte’s FGFR1/2/3 inhibitor, pemigatinib, for treating cholangiocarcinoma patients CDx for Incyte’s FGFR1/2/3 inhibitor, pemigatinib, to treat patients with cholangiocarcinoma, to be incorporated into Foundation’s FoundationOne CDx assay
Seven Bridges Genomics E-Nios (Greece)
  • Objective: More efficient extraction of biomarker signatures from NGS and multi-omics data
  • Dynamic: Combine machine learning and physiology to automate at least part of laborious process of interpreting potential biomarkers
Lunaphore Technologies A. Menarini Diagnostics
  • Objective: Market system for personalized immunohistochemistry (IHC) treatment
  • Dynamic: System to use Lunaphore’s LabSat Frozen technology for rapid enabling of IHC assays
Exact Imaging Cambridge Consultants
  • Objective: Improve prostate cancer detection and diagnosis
  • Dynamic: Combine Exact Imaging’s ExactVu micro-ultrasound platform for urologist to assess and target suspicious regions during biopsy with Cambridge’s AI and deep learning expertise
Evotec Celgene
  • Objective: Targeted protein degradation drug discovery
  • Dynamic: Use Evotec Panomics genomic, transcriptomic, and proteomic data platform to identify difficult-to-track drug targets
  • Celgene to get exclusive rights to all drug candidates and pay Evotec undisclosed upfront payment, milestone payments and potential double-digit royalties
Evotec Centogene
  • Objective: Develop high-throughput platform for evaluating novel small molecule treatments for rare hereditary metabolic diseases
  • Dynamic: Combine Evotec’s induced pluripotent stem cell-based drug screening platform with Centogene’s patient access and biomarker expertise
NRGene RCK (Israeli cannabis producer)
  • Objective: Develop DNA biomarkers for medical cannabis breeding and strain identification
  • Dynamic: Use NRGene’s computational tools to develop the biomarkers for commercial use
LTS Health The Project Santa Fe Foundation
  • Objective: Create online platform to serve as a knowledgebase to crowdsource ideas from health professionals and institutions in lab diagnostics
  • Dynamic: Platform to launch in Nov.
Agendia GeneCast Biotechnology
  • Objective: Bring Agendia’s breast cancer tests to China market
  • Dynamic: GeneCast gets exclusive right to market Agendia MammaPrint and BluePrint tests in China referred by local physicians to be performed at GeneCast’s oncology laboratory
Congenica Digital China Health Technologies (DC Health)
  • Objective: Bring Congenica’s Sapientia genome analysis platform to China market
  • Dynamic: DC Health to market platform which will be tailored for Chinese market
Biocartis Wondfo Biotech
  • Objective: Bring Biocartis’ Idylla platform to China market
  • Dynamic: Form 50/50 joint venture to license Idylla in China starting by end of 2018
Clearbridge Health’s SAM Laboratory subsidiary Indonesian firms PT Kreasi Putra Nusantara +
PT Indo Genesis Medika
  • Objective: Provide diagnostics services to public hospitals in Indonesia
  • Dynamic: Multiple contracts under which SAM acquires proposed subscription of a controlling stake in Indo Genesis for $2.8 million
Sienna Cancer Diagnostics Royal Melbourne Hospital (RMH)
  • Objective: Evaluate Sienna’s cancer hTERT for detecting telomerase biomarker for thyroid cancer
  • Dynamic: Study to be conducted at RMH will run the test on fine needle aspirate thyroid biopsies with matched thyroid nodules after removal to determine whether it can accurately differentiate benign from cancerous nodules
Biocept Highmark Health
  • Objective: Study clinical and economic impact of Biocept’s Target Selector liquid biopsy in patients with non-small cell lung cancer
  • Dynamic: 12-month study conducted through Highmark’s Vital Innovation Program
Abreos Biosciences ResearchDx
  • Objective: Make co-developed moNATor test for monitoring Tysabri (natalizumab) available to clinicians and researchers
  • Dynamic: Test to be available through ResearchDx’s Pacific Diagnostics reference laboratory
BGI Xing Technology (Australia)
  • Objective: Optimize DNA nanoball technology to improve quality and throughput of sequencing data to lower costs
  • Dynamic: Collaborate on integrating circulating tumor cell isolation, characterization and sequencing to accelerate technology’s use for disease screening and monitoring
  • Jointly research and manufacture a diagnostic product developed by Xing
DISTRIBUTION, SALES & MARKETING AGREEMENTS
Property Owner Distributor Deal Summary
 Arbor Biosciences Tataa Biocenter
  • Products: Arbor’s NGS and synthetic biology products
  • Territories: Sweden, Denmark, Norway, Slovakia, Czech Republic
  • Arbor to provide reagents and support to Tataa for its education course on NGS applications
Ranomics Axil Scientific
  • Product: Ranomics’ VariantFind DNA libraries
  • Territory: Singapore
HalioDx Gencell Pharma
  • Product: HalioDx’s Immunoscore Colon assay
  • Territory: Colombia
  • HalioDx made distribution deals for assay in Mexico and Israel in July
Lucence Diagnostics Mascots Medical and Laboratory Center
  • Products: Lucence’s blood-based cancer diagnostic tests and treatment in  
  • Territory: Myanmar
  • Lucence has deals already in place for Philippines, Thailand and Singapore
Todos Medical Orot+
  • Products: Todos’ blood-based breast cancer screening tests TM-B1 and TM-B2
  • Territories: Romania (5 years) and Austria (3 years)
  • Exclusive
NovellusDx Primetech
  • Product: NovellusDx’s functional annotation for cancer treatment (FACT) assay
  • Territory: Japan
  • Exclusive
LICENSES
Licensor Licensee Deal Summary
Illumina Premaitha Health
  • Property: Illumina’s NIPT patent pool
  • Premaitha to offer testing in Europe and other countries and develop a version of its Iona test
  • Premaitha to also pay up to £1 million ($1.3 million) to settle its UK litigation with Illumina
Broad Institute and ERS Genomics Thermo Fisher Scientific
  • Property: CRISPR technologies patents
  • Global, non-exclusive
Hospital Del Mar + two individual researchers from University of Torino Biocartis
  • Property: EGFR ectodomain mutations that have been shown to determine responses to targeted therapy for metastatic colorectal cancer
  • Global, exclusive
Nanosys BioDirection
  • Property: Patents for technologies BioDirection is using to develop its development of its Tbit sepsis diagnostic platform
  • Extension of 2012 agreement between the parties
  • Global, exclusive
SUPPLY, SERVICE & TESTING AGREEMENTS
Supplier/Servicer Client/User Deal Summary
NeoGenomics Premier
  • Group purchasing agreement providing Premier network members access to NeoGenomics clinical reference lab testing services at pre-set rates
Expedeon PaxGenBio (South Korea)
  • 3-year license and supply agreement under which Expedeon to supply PaxGenBio colloidal gold for use in multiplexed polymerase chain reaction-based universal lateral flow assays for simultaneous detection of sexually transmitted diseases and tuberculosis
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