DIAGNOSTIC DEALS

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

The strategic deal making pot continues to boil, despite the relative inactivity of the established market leaders like Quest, LabCorp and Abbott. Here’s a look at the trends and major deals from late June to late July.

Mergers & Acquisitions and Asset Sales

The biggest M&A deal of the period was Agilent Technologies’ agreement to acquire BioTek Instruments for $1.17 billion in cash. Expected to close in the fourth quarter, the deal will expand Agilent’s position in the cell analysis market which the firm first entered in 2015 by acquiring Seahorse Bioscience. Coupled with last year’s acquisitions of Luxcel Biosciences and ACEA Biosciences, the BioTek deal is expected to boost Agilent’s annual cell analysis revenues above $250 million, according to company sources. “By combining BioTek’s offerings with Agilent’s, we will deliver a breadth of differentiated workflows, enabling customers to obtain deeper, more reliable insights across a variety of cell analysis applications,” noted Jacob Thaysen, president of Agilent’s life sciences and applied markets group, in a statement.

In addition to the deals summarized in the chart below, Evotec, a publicly traded global drug discovery and development company based in Hamburg announced that it has acquired intellectual property related to iPSC-based phenotypic drug discovery and an existing iPSC-derived cells products business from Ncardia, a privately held stem cell drug and discovery company with offices in Belgium, the Netherlands and US. As part of the acquisition, Evotec is also taking on 17 stem cell biology experts who have expertise in generating multiple disease-relevant cell types from iPSCs and applying them in drug discovery.

In announcing the deal, Evotec said that combining these assets and knowledge with its own iPSC expertise and drug-discovery platforms will create new biological research opportunities and enhance new and existing partnerships. “Additional expertise and capacity in the iPSC space as well as a substantial partner network will allow us to further accelerate our efforts to build a world-leading iPSC translational biology platform across different disease areas,” said Cord Dohrmann, CSO of Evotec.

Strategic Alliances

Companies making strategic alliance news this busy month include 23andMe, Thermo Fisher Scientific, Illumina and Precipio. Helomics, a division of Predictive Oncology, was especially busy, announcing three new partnerships.

Here’s a summary of key diagnostic deals announced from late June through the third week of July:

MERGERS, ACQUISITIONS & ASSET SALES
Acquiring Company Target(s) Deal Summary
Agilent Technologies BioTek Instruments
  • Price: $1.17 billion cash
  • Status: Expected to close in Q4
  • Agilent to acquire producer of instruments for the life science industry, including cell imaging systems, microplate readers, washers, dispensers, automated incubators, stackers and other life science instruments with $162 million in 2018 revenues
PHC Holdings Thermo Fisher Scientific
  • Price: $1.14 billion cash
  • Status: Closed June 28
  • Thermo Fisher sells off its Anatomical Pathology business with 1,200 worldwide employees and roughly $350 million in annual revenues
Invitae Singular Bio
  • Price: $55 million—approximately 2.5 million shares of Invitae common stock + $5.7 million in cash
  • Status: Closed
  • Singular employees that stay with company to get up to $90 million in Invitae contingent stock awards
  • Acquisition of firm specializing in single-molecule, cell-free DNA analysis for non-invasive prenatal testing advances Invitae’s strategy to push into NIPT space
Invitae Jungla
  • Price: $50 million–$15 million cash + $35 million common stock
  • Status: Closed
  • Acquisition of AI-driven biotech firm and developer of cloud-based Functional Modeling Platform boosts Invitae’s variant interpretation capabilities
Interpace Diagnostics Cancer Genetics
  • Price: $23.5 million–$13.8 million cash + $7.7 million note at 6% interest
  • Status: Closed
  • Interpace acquires biopharma services of Cancer Genetics with 2018 net revenues of $15 million
siParadigm Cancer Genetics
  • Price: $1 million cash + earn-out to be determined based on testing volume over the next year
  • Status: Closed
  • siParadigm acquires clinical lab business of Cancer Genetics
Precision IBD Prometheus Laboratories (US-sub of Nestlé Health Science)
  • Price: Undisclosed
  • Status: Closed
  • Nestlé divests developer of pharmaceutical and diagnostic products with focus on gastrointestinal diseases
  • Exception: Nestlé to continue operating POC diagnostic business under the new name Procise Dx
  • Precision IBD to lay off 72 of Prometheus’ 280 employees
ArchiMed EuroLyser
  • Price: Undisclosed
  • Status: Closed
  • ArchiMed also acquires EuroLab, main distributor of EuroLyser’s POC products
Quanterix UmanDiagnostics
  • Price: $22.5 million–$16 million cash + $6.5 million Quanterix common stock
  • Status: No closing date announced
  • Quanterix acquires supplier of neurofilament light antibodies and ELISA kits to advance development of therapeutics and diagnostics for neurodegenerative conditions
 Eurofins Scientific  Transplant Genomics (TGI)
  • Price: Undisclosed
  • Status: Closed
  • Eurofins acquires developer of molecular diagnostics for management of organ transplant patients including TruGraf DNA microarray test
Biodesix Oncimmune
  • Price: Undisclosed
  • Status: Agreement to acquire with no closing date announced
  • Biodesix acquire rights to Oncimmune’s EarlyCDT Lung in US as well as latter’s US operations including Kansas-based CLIA lab which is sole US provider of test
Abbott GLP Systems
  • Price: $50 million + up to $70 million more in contingent milestone payments
  • Status: Closed
  • Abbot acquires 100% of Australian lab services, pathology and radiology services provider, including 85% stake previously held by Sonic Healthcare
  • Sonic is and will remain client of GLP
Abcam EdiGene
  • Price: Undisclosed
  • Status: Closed
  • Abcam to use EdiGene’s live cell line and lysates products to support further knockout antibody validation as a part of its ongoing antibody quality initiative
STRATEGIC ALLIANCES, PARTNERSHIPS & COLLABORATIONS
Partner 1 Partner(s) 2+ Deal Summary
23andMe Alnylam Pharmaceuticals
  • Objective: Provide free genetic test kits to first-degree family members of 23andMe customers who have TTR variant that causes hereditary amyloidosis
  • Dynamic: 23andMe customers with TTR variants who opt to partake in research can invite up to six first-degree relatives to get a free health and ancestry kit and those relatives will decide if they want to see the TTR variant report
Thermo Fisher Scientific Biodesix
  • Objective: Develop sequencing-based lung cancer liquid biopsy diagnostic test
  • Dynamic: Biodesix to generate analytical and clinical data using Thermo Fisher’s Ion Torrent Oncomine Pan-Cancer Cell-Free Assay to apply for FDA premarket approval (PMA)
  • After approval, Biodesix will have a single-site PMA for NGS-based liquid biopsy test covering actionable markers in cancer for use in NGS-based biomarker discovery, validation studies and companion diagnostic commercialization
Chembio Diagnostics Takeda Pharmaceutical (via Shire Human Genetic Therapies subsidiary)
  • Objective: Develop quantitative POC diagnostic test to detect undisclosed biomarker
  • Dynamic: Test to leverage Chembio’s Dual-Path Platform chromatographic immunoassay and hand-held optical analyzer
Fulgent Genetics Parkinson’s Foundation
  • Objective: Provide genetic testing and counseling for individuals with Parkinson’s-related genes
  • Dynamic: PD GENEration: Mapping the Future of Parkinson’s disease initiative to use customized version of Fulgent’s Parkinson’s disease NGS panel to target seven genes linked to Parkinson’s with Fulgent to analyze results
  • Indiana University School of Medicine, University of Florida CTSI Data Coordinating Center and the University of Rochester’s Clinical Trials Coordination Center to help by providing genetic counseling and secure data storage
NanoString Technologies MODEL-AD consortium
  • Objective: Develop two nCounter gene expression panels for use in Alzheimer’s disease research
  • Dynamic: Panels will measure expression of 770 genes covering 30 modules discovered in a recent study of human brain tissue for use in human and mouse studies
ArcherDX Ayala Pharmaceuticals
  • Objective: Develop companion diagnostics for new cancer drugs Ayala is developing
  • Dynamic: ArcherDX to provide companion diagnostic solutions to determine if cancer patients with Notch-activating genetic mutations and fusions will respond to the drugs
Helomics (subsidiary of Predictive Oncology) Interpace Diagnostics
  • Objective: Develop products to diagnose and assess thyroid cancer risk
  • Dynamic: Integrating Interpace’s ThyGeNEXT and ThyraMir assays with Helomics’ D-CHIP (Dynamic Clinical Health Insights Platform)
  • Helomics to use Interpace’s clinical data to build model to find druggable targets for aggressive and indolent thyroid cancer treatment
Helomics University of Pittsburgh Medical Center
  • Objective: Leverage AI to improve clinical decision making for ovarian cancer patients
  • Dynamic: Use Helomics’ AI-based D-CHIP tool to analyze genomic and drug response profiles of ovarian cancer patients to identify value in predicting response to therapy
Helomics ChemImage
  • Objective: Develop technology to monitor prostate cancer response to treatment
  • Dynamic: ChemImage to provide Helomics human prostate biopsy and prostatectomy tissue samples for sequencing
  • Helomics to integrate sequence results and existing Raman spectroscopy data on samples into its D-CHIP AI knowledgebase to build predictive model of prostate cancer drug response
PreventionGenetics Rhythm Pharmaceuticals
  • Objective: Offer free testing for rare genetic obesity disorders to boost development of Rhythm’s setmelanotide drug
  • Dynamic: Rhythm’s Uncovering Rare Obesity program to offer free genetic testing through PreventionGenetics to individuals with early-onset severe obesity and insatiable hunger to help determine if conditions have genetic basis
XVivo Perfusion MyCartis
  • Objective: Develop diagnostic tool to assess quality of donated organs during ex vivo perfusion
  • Dynamic: Expand MyCartis’ real-time Evalution analysis platform to enable users to quantify organ damage next to the degree of inflammation
PathogenDx Nationwide Laboratory Services
  • Objective: Create laboratory developed test for fungal testing of dermatology and podiatry samples
  • Dynamic: Use PathogenDx testing technology to create multiplex fungal assay that can identify up to 44 different pathogens at a time
Celsius Therapeutics Janssen Biotech
  • Objective: Identify drug response biomarkers for an investigational ulcerative colitis drug combination
  • Dynamic: Use Celsius technologies to identify predictive biomarkers of response in a Phase IIa study evaluating a cocktail of Janssen’s guselkumab (Tremfya) and golimumab (Simponi) drugs
  • Celsius to get undisclosed payments, including milestones tied to use of biomarkers and retain right to include clinical and sample-level data from study in its patient and single-cell genomics database
Inspirata Indema
  • Objective: Improve integration of information technology systems in university hospitals in Europe
  • Dynamic: Form new entity called Inspirata Europe that combines Inspirata’s digital pathology capabilities and oncology informatics with Indema’s IT assessment, project design and program management capabilities
Tabula Rasa HealthCare CQuentia
  • Objective: Offer pharmacogenomics services and biometric wearables
  • Dynamic: Use Tabula Rasa MedWise technology for electronic delivery of PGx test results to ordering physicians
  • CQuentia to be Tabula Rasa’s preferred PGx lab partner
Oncimmune R-Pharm
  • Objective: Commercialize Oncimmune EarlyCDT Lung test in Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan
  • Dynamic: 5-year exclusive commercial partnership expected to generate at least £5 million ($6.2 million), including £2.75 million in milestone payments, in which R-Pharm will register test in Russia and be responsible for all sales and marketing costs in all geographic areas of deal
  • Illumina R-Pharm to invest up to £3.5 million to create a screening program using EarlyCDT Lung in Moscow and eventually across Russia
Illumina AnchorDx
  • Objective: Develop clinical oncology tests for China market
  • Dynamic: Southern China-based AnchorDx to use Illumina MiSeqDx sequencing system to develop cancer test kits and data analysis software
  • Looking to create first cancer screening IVD product in China on MiSeqDx system
Integrated DNA Technologies (part of Danaher) ChosenMed
  • Objective: Develop large pan-cancer gene panels as part of Cancer Genome Atlas of China (CGAC) project
  • Dynamic: IDT to provide NGS enrichment products for cancer sequencing to Beijing-based ChosenMed for R&D enhancement
Precipio H3 Biomedicine
  • Objective: Develop multiplexed PCR assays for FGFR3, PIK3CA, HRAS, TERT, and PLEKHS1
  • Dynamic: Second development project between parties with Precipio to also develop 9 amplicons within genes of interest and focus on amplification and multiplexing of the mutations of interest
BGI Genomics Eluthia
  • Objective: Develop reproductive genetic tests for German market
  • Dynamic: Eluthia to offer BGI’s noninvasive prenatal NIFTY test in Germany under the brand name PreviaTest with patient samples to be analyzed in BGI Genomics laboratories outside Germany
CancerIQ Gene Matters
  • Objective: Integrated technologies to give care providers easier access to counselors for patients at high risk for cancer
  • Dynamic: Use CancerIQ platform to identify high-risk patients and enable providers to use same platform to schedule telehealth visits with GeneMatters counselors with GeneMatters sending back summary report of visit via CancerIQ portal
Progenity NYU Winthrop Hospital
  • Objective: Develop biomarker panel for predicting preterm birth
  • Dynamic: NYU Winthrop to grant Progenity exclusive license to 2 of its patents
PerkinElmer FDNA
  • Objective: Offer FDNA’s genetic testing technologies, including Face2Gene software through PerkinElmer lab network
  • Dynamic: PerkinElmer to integrate FDNA’s genetic testing technology into its lab ordering and variant analysis workflows as a package called Face2Gene Labs
  • Three-year project with phase 1 to focus on identifying VOCs in breath of people diagnosed with malignant mesothelioma, and phase 2 to launch a blind study to verify the sensitivity, specificity and positive and negative predictive values of selected VOC biomarkers identified in phase 1
Loxo Oncology Amoy Diagnostics + Premia Holdings
  • Objective: Genetic screening of patients to support development of Loxo’s targeted cancer therapy
  • Dynamic: AmoyDx and Premia to provide large-scale cancer patient screening in Asia to support Loxo-292 RET inhibitor clinical development using AmoyDx’s multigene PCR and NGS panels to identify patients with RET genetic alteration
SpeeDx GlaxoSmithKline
  • Objective: Drug development
  • Dynamic: SpeeDx to provide GSK with a combination of existing and custom-developed molecular diagnostic tests to support its antibiotic clinical trials and new product development efforts
Sciex EluciData
  • Objective: Comarket respective products
  • Dynamic: Sciex to promote EluciData’s Polly multi-omics platform in conjunction with its TripleTOF, X500R QTOF and QTRAP instruments and its Differential Ion Mobility technologies
MGI Tech Centre for Translational Microbiome Research at Sweden’s Karolinska Institutet
  • Objective: Study role of the microbiome in human health
  • Dynamic: 10,000 Metagenomics Project under which partners will use MGI Tech’s DNBseq sequencing technology to generate shotgun metagenomics data from an existing microbiome biobank yielding insight into relationship between the microbiome, normal physiology and disease
DISTRIBUTION, SALES & MARKETING AGREEMENTS
Property Owner Distributor Deal Summary
 Inivata IPS Genomix
  • Products: Inivata’s InVisionFirst-Lung and InVisionSeq liquid biopsy tests
  • Oncimmune Territory: UAE, Qatar, Kuwait, Bahrain, Lebanon, Jordan, Egypt, Saudi Arabia
Oncimmune Vithas Group
  • Products: Oncimmune’s EarlyCDT Lung cancer assay
  • Territory: Spain
The Native Antigen Company Biozol
  • Products: Native Antigen’s line of native and recombinant viral and bacterial antigens, antibodies and immunoassays
  • Territory: Germany, Switzerland, Austria
The Native Antigen Company Shanghai Bioleaf
  • Products: Native Antigen’s line of native and recombinant viral and bacterial antigens, antibodies and immunoassays
  • Mission Bio Territory: China
Mission Bio Novogene
  • Products: Mission Bio’s Tapestri Platform
  • Territory: China
Arcis Biotechnology Opentrons
  • Products: Arcis’ nucleic acid sample prep products
  • Territory: Worldwide
Seventh Sense Biosystems Miraca
  • Products: Tap, Seventh Sense’s push-button device that uses a microneedle array to collect capillary blood from the arm
  • Territory: Japan
  • Miraca also gets undisclosed equity stake in Seventh Sense
RevoluGen Merck KGaA
  • Products: RevoluGen’s DNA extraction and size selection product
  • Territory: Worldwide
  • Non-exclusive
Mobidiag Pro Med Diagnostics
  • Products: Mobidiag’s Amplidiag and Novodiag products
  • Territory: South Africa, Namibia, Botswana, Zimbabwe, Swaziland, Lesotho, Malawi, Kenya, Uganda
  • Exclusive
PlexBio A. Menarini Diagnostics
  • Products: PlexBio’s IntelliPlex system
  • Territory: Western Europe, Middle East, Australia
  • Exclusive
Qiagen McKesson Medical-Surgical
  • Products: Qiagen’s QiaStat-Dx syndromic testing platform
  • McKesson exclusive distributor in the “acute” market segment of US hospitals with 200 or fewer beds
  • McKesson also non-exclusive distributor for QiaStat-Dx’s future expansion into clinics located in US retail pharmacies
LICENSES
Licensor Licensee Deal Summary
The Broad Institute MilliporeSigma
  • New licensing framework covering CRISPR genome editing intellectual property under each side’s respective control
  • Broad to now offer licenses to its own and MilliporeSigma’s CRISPR IP portfolio to potential licensees for internal research uses and commercial research tools and kits
  • MilliporeSigma’s IP for CRISPR technology now available royalty-free to non-profit academic institutions, non-profit business communities and governmental agencies for internal research
Arcis Biotechnology Mirnax Biosens
  • Property: Arcis’ nucleic acid sample preparation and preservation technology
  • Mirnax to use technology to improve stability of miRNA biomarkers for early disease detection
  • Firms to also work together to develop a microfluidic device that integrates their respective technologies
CytoDyn IncellDx
  • Property: CytoDyn’s humanized antibody-based cancer and HIV drug leronlimab
  • CytoDyn to license and supply noncommercial grade leronlimab, along with the murine version of the antibody, to IncellDx for use in assays to determine the presence of CCR5 on cancer tissue and receptor occupancy level for HIV patients
SUPPLY, SERVICE & TESTING AGREEMENTS
Supplier/Servicer Client/User Deal Summary
Quest Diagnostics Catholic Health Services of Long Island
  • Quest to provide lab management services and reference testing to six CHS hospitals, a core lab, a cancer center and an infusion center
NEW CLINICAL STUDIES
DX Partner Other Partner(s) Description of Study
Inivata France’s Centre Léon Bérard
  • Test whether Inivata’s InVisionFirst-Lung test can get patients on appropriate treatment more quickly than tissue-based genetic testing
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