NEWS

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

After a relatively slow March and April, business has picked up noticeably in May, June and July with deal volume increasing across all transaction model sectors. Here are the highlights from the past 4 weeks.

M&A
The most active seller of the month was Alere. Soon after announcing shareholder approval of the Abbott merger, Alere sold off strategic assets to clear the deck for antitrust approval of the deal. On July 17, Alere announced the sale of its Triage businesses to Quidel for $400 plus $40 million in contingent payments. The deal includes real estate, i.e., the triage business’s San Diego facilities, Alere’s MeterPro cardiovascular and toxicology assets and B-type Naturietic Peptide (BNP) assay. A week later, Alere announced that Siemens had agreed to buy its Epocal point-of-care blood diagnostic unit for an undisclosed price. The Quidel and Siemens sales are both contingent on consummation of the Alere-Abbott merger.

The other big story in M&A for the month was the appearance of a new and potentially significant player: Konica Minolta, which inked an agreement to purchase genetic testing firm Ambry Genetics for up to $1 billion in cash. According to a company spokesman, the deal represents the digital giant’s first step in leveraging its medical imaging capabilities to build a presence in the precision medicine market, first in Japan and then in Europe.

Strategic Alliances
In a month with intense deal volume, the collaborations pitting big labs with mass retailers were the sexiest of the new strategic alliances. There were not one but two such deals announced during the month—the first pairing Quest and Walmart followed a week later by a second deal co-starring LabCorp and Walgreens.

As per usual, most of the partnerships and alliance made in July involved genomics and molecular diagnostics. Notable examples:

  • The 5-year partnership of Exploit Technologies and Biocartis to develop molecular breast cancer diagnostic tests to be run on the latter’s PCR-based Idylla platform;
  • Trovagene’s latest venture into the Chinese market via collaboration with Chinese genomics service provider Novogene to commercialize Trovagene’s Next Collect device, which is currently approved for research use only; and
  • EntroGen’s collaboration with the USC Norris Comprehension Cancer Center to evaluate the clinical utility of the former’s liquid biopsy real-time PCR test in lung cancer patients.

Here’s a graphic rundown of all the key diagnostic deals in late June and early July:

MERGERS & ACQUISITIONS
Acquiring Company Target(s) Deal Summary
Siemens Alere’s Epocal point-ofcare blood diagnostic unit
  • Price: Undisclosed
  • Status: To close by end of Sept.
  • Sale contingent on consummation of Abbott Alere merger
Quidel Alere’s triage MeterPro cardiovascular and toxicology assets and B-type Naturietic Peptide (BNP) assay business
  • Price: $400 million + $40 million in contingent payments paid as mix of cash and loans
  • Status: To close by end of Sept.
  • Sale contingent on consummation of Abbott Alere merger
Roche mySugr
  • Price: Undisclosed
  • Status: Closed
  • Privately held mySugr produces a mobile devices logbook to help people track their blood sugar, medications and activity levels
Konica Minolta Ambry Genetics
  • Price: Up to $1 billion cash, including $800 million upfront and up to $200 million over 3 years
  • Status: Expected to close in 3Q
  • Ambry to become subsidiary of Konica Minolta and keep its name and continue its genetic testing operation from its current California HQ
Thermo Fisher Scientific Linkage Biosciences
  • Price: Undisclosed
  • Status: Closed
  • SF-based Linkage, known for its LinkSeq product line, becomes part of Thermo Fisher’s One Lambda transplant Dx business
Quest Diagnostics Laboratory businesses Med Fusion and Clear Point in Lewisville, Texas
  • Price: Undisclosed
  • Status: Closing of previously announced deal
  • Quest acquires business’ 200,000 sq. foot facility and becomes a preferred provider to several organizations that are former owners of one or both businesses
Quest Diagnostics Outreach laboratory services business of Cape Cod Healthcare
  • Price: Undisclosed
  • Status: Non-binding letter of intent subject to negotiation of terms and regulatory approval, which is expected to occur by Jan. 1, 2018
  • Deal comes on heals of Quest’s acquisition of PeaceHealth Laboratories’ outreach lab services operations
SOL Group Personal Genomics
  • Price: Undisclosed
  • Status: Italy-based SOL acquires 51% stake
  • SOL to finance expansion of PG’s tests for genetic disorders and early cancer diagnosis
Eurofins Genoma Laboratory Group
  • Price: Undisclosed
  • Status: Expected to close in July
  • Eurofins gains entry to Italian testing market and strengthens its position in specialty diagnostics across Europe
  • Deal follows Eurofins’ acquisition of GATC Biotech, which is also expected to close in July
Philips Spectranetics Corp
  • Price: €1.9 billion ($2.16 billion) + debt
  • Acquisition of Spectranetics’ guidance tech for heart disease expands Philips’ image-guided therapy line
  • Deal not expected to increase Philips’ return on invested capital for 5 years
Philips N.V. Electrical Geodesics Inc.
  • Price: Purchase price based on £29 million ($36.7 million) valuation of EGI
  • Status: Expected to close in 3Q
  • Philips drawn by EGI’s EEG platform technology, which gathers brain-activity data from many more electrodes than conventional EEG products
PerkinElmer Euroimmun Medical Laboratory Diagnostics (based in Germany)
  • Price: Approximately $1.3 billion cash
  • Status: Expected to close in 4Q
  • Acquisition of Euroimmun, recognized as a global leader in autoimmune testing and emerging force in infectious disease and allergy testing, expands PerkinElmer’s reach into autoimmune and allergy diagnostic markets, and enables it to offer "new infectious disease capabilities to customers in China," according to a company spokesman
Invitae Ommdom (health software developer)
  • Price: Roughly $6 million in Invitae common shares in exchange for all Ommdom outstanding capital stock
  • Status: Closed
  • Acquisition of Ommdom’s CancerGene Connect platform for collecting and managing genetic family histories expands its existing suite of technologies for using genetic information in mainstream medical care
STRATEGIC ALLIANCES, PARTNERSHIPS & COLLABORATIONS
Partner 1 Partner 2 Deal Summary
Asia Genomics CellMax Life
  • Objective: Make CellMax’s cancer tests available throughout Southeast Asia
  • Dynamic: Partnership in which Asia Genomics will make tests available immediately through hospitals and clinics in region, and directly to consumers "where appropriate"
Trovagene Novogene (Chinese genomics service provider)
  • Objective: Develop tests for Chinese market
  • Dynamic: Novogene to validate Trovagene’s Next Collect urine collection and nucleic acid preservation device, which is currently approved for research only, for commercial use in China
Nestle Health Science Enterome
  • Objective: Develop microbiome diagnostics for inflammatory bowel disease, liver disorders and other indications
  • Dynamic: 50/50 joint venture forming startup company called Microbiome Diagnostics Partners
Biocartis Exploit Technologies
  • Objective: Develop molecular breast cancer and other tests to be run on Biocartis’ PCR-based Idylla platform
  • Dynamic: 5-year alliance
  • Biocartis responsible for commercializing tests under its own label
  • ETPL to act as a development partner via Singapore’s Diagnostics Development Hub
Counsyl Angsana Molecular & Diagnostics Laboratory
  • Objective: Commercialize Counsyl’s expanded carrier screening test in Hong Kong
  • Dynamic: Samples to be processed at Counsyl’s CLIA-certified San Francisco lab
Bionano Genomics Genoptix
  • Objective: Co-develop diagnostic assays for hematologic oncology indications
  • Dynamic: Exclusive deal combining Bionano’s Saphyr system for visualizing the structure of a genome and Genoptix’s expertise in hematology and oncology
Rennova Health Certainty Health
  • Objective: Develop smartphone-based platform for offering molecular tests for precision treatment of psychiatric disorders
  • Dynamic: Rennova to offer genetic tests developed by its Advanced Molecular Services Group subsidiary directly to consumers via mobile platform
Quest Diagnostics Wal-Mart Stores
  • Partnership to bring Quest’s laboratory testing services to 15 Walmart locations in Florida and Texas by end of 2017
Adaptive Biotechnologies Janssen Pharmaceuticals
  • Objective: Study clinical effectiveness of Jannsen’s Darzalex drug for treating multiple myeloma (MM)
  • Dynamic: Adaptive will use its NGS-based ClonoSeq assay to measure minimal residual disease in MM patients treated with Darzalex in clinical trials
BGI University of Debrecen in Hungary
  • Partnership to establish a next-generation sequencing laboratory and collaborate on genomics research projects
MDxHealth QUT bluebox (commercialization arm of Queensland University of Technology)
  • Objective: Develop liquid biopsy epigenetic assay for early detection of oral cancer
  • Dynamic: MDxHealth to have first option to license the commercial diagnostic rights
  • Proceeds to support firm’s urologic cancer diagnostics R&D platform as well as University research activities
Thermo Fisher Scientific OpGen
  • Objective: Commercialize OpGen’s Acuitas molecular products and informatics system for fighting multidrug-resistant infections
  • Dynamic: OpGen to combine its Acuitas Rapid Test for Pathogen ID with Thermo Fisher’s real-time PCR solutions
Human Longevity Merck KGaA
  • Objective: Identify treatment-response biomarker signatures in advanced melanoma patients
  • Dynamic: HL to generate and analyze genomic sequencing data from clinical trial participants’ tumors and germline DNA
EntroGen University of Southern California Norris Comprehensive Cancer Center
  • Collaboration to evaluate clinical utility of EntroGen’s liquid biopsy real-time PCR test in lung cancer patients
FlowJo Becton Dickinson
  • Objective: Co-marketing
  • Dynamic: Companies to market FlowJo Envoy cloud-based data-analysis software with BD’s FACSymphony a cell analyzer for simultaneous measurement of up to 50 characteristics of a single cell
FlowJo Cytapex Bioinformatics
  • Partnership to provide bioinformatics consulting and services in flow cytometry data analysis using the FlowJo application
Siemens Healthineers Fast-track Diagnostics
  • Objective: Expansion of Siemens’s molecular testing product line
  • Dynamic: Siemens to add a range of Fast Track’s CE-marked kits and multi-syndromic panels to its own Versant kPCR Molecular System menu
  • Jackson scientists to form genomics research collaborations with WMU investigators in US and China
LifeLabs GenXys Health Care Systems
  • Objective: Offer pharmacogenetic testing services in Canada
  • Dynamic: LifeLabs to analyze patient cheek swab samples to look for 60 genetic variations that can affect drug metabolism and response
  • Results to be added to GenXys’ TreatGxPlus software
Trovagene AstraZeneca
  • Objective: Evaluate whether blood and urine testing in combination is as effective as tissue testing in identifying epidermal growth factor receptor T790M mutation status
  • Dynamic: AstraZeneca to use Trovagene’s Trovera EGFR urine liquid biopsy test to conduct biomarker study
HTG Molecular Diagnostics Qiagen
  • Objective: Develop sequencing-based companion diagnostic assay
  • Dynamic: Qiagen to pay low single digit millions of dollars for initial phase development work performed by HTG and share in net profits generated by initial phase
CloudHealth Genomics (based in Shanghai) Mongolian Health Initiative
  • Collaboration to advance precision medicine research for nutritional deficiencies and nutrition-related diseases
Tempus University of Michigan’s Comprehensive Cancer Center
  • Objective: Use molecular data to identify most effective care for breast cancer
  • Dynamic: Tempus to use bioinformatics and machine learning to analyze molecular, phenotypic, therapeutic and outcome data from UM patients
  • Tempus has similar collaborations with University of Chicago, Duke, University of Pennsylvania, Ohio’s University Hospitals Seidman Cancer Center and Mayo Clinic
GeneDx (owned by Opko Health) University of California
  • Objective: Track physician utilization of genetic tests
  • Dynamic: Expansion of current agreement to cover more than 400 tests for rare hereditary disorders
DISTRIBUTION, SALES & MARKETING AGREEMENTS
Property Owner Distributor Deal Summary
Molecular Biology Systems (MBS) Isogen Life Sciences
  • Product: MBS’s NextGen PCR thermal cycler
  • Territories: Belgium, Netherlands, Luxembourg and Spain
  • Exclusive
OneOme Total Quality Medicine (TQM)
  • Products: OneOme’s PCR-based RightMed genetic test to be incorporated into TQM’s GeneTest line of personalized medicine products
  • Territory: Mexico
Dovetail Genomics Tree Code
  • Products: Dovetail’s genome assembly services
  • Territories: Singapore, Malaysia, Thailand, Vietnam, Indonesia, Philippines and Myanmar
OncoDNA Shchurko
  • Products: OncoDeep solid tumor test, OncoTrace and OncoSelect liquid biopsy tests, OncoStrat&Go and OncoKDM data reporting software
  • Territory: Belarus
Streck Golden Bat Far East
  • Products: Streck’s cell stabilization, molecular and core products
  • Territory: Philippines
MDxHealth IPS Genomix
  • Product: SelectMDx for Prostate Cancer test
  • Territories: Lebanon, Egypt, United Arab Emirates, Saudi Arabia, Oman, Bahrain, Qatar and Jordan
GenePOC Cardinal Health
  • Products: GenePOC’s revogene instrument and associated assays
  • Territory: US
  • Exclusive
OncoDNA Zogen
  • Products: OncoDNA products for molecular profiling of liquid biopsies and solid tumor tissue for personalized medicine
  • Territory: Mexico
Canopy Biosciences Cosmo Bio
  • Products: Canopy’s genetic engineering products
  • Territory: Japan
Genomic Vision APG Bio
  • Products: Genomic Vision’s products and services to be offered to life science researchers
  • Territories: China, Hong Kong and Macau
GenePeeks Alliance Global Group
  • Products: GenePeeks’ Preconception Screen
  • Territories: Middle East and Africa
Cynvenio Biosystems Bio-Medical Science
  • Products: Cynvenio’s ClearID line of liquid biopsy tests
  • Territory: South Korea
Cynvenio Biosystems ProgeniTest
  • Products: Cynvenio’s ClearID line of liquid biopsy tests
  • Territory: Argentina
Cynvenio Biosystems Karyo
  • Products: Cynvenio’s ClearID line of liquid biopsy tests
  • Territory: Greece
Cynvenio Biosystems Pronto Diagnostics
  • Products: Cynvenio’s ClearID line of liquid biopsy tests
  • Territory: Israel
Biodesix Positive Bioscience
  • Products: Biodesix’s GeneStrat and VeriStrat
  • Territory: India
  • All testing to be done at Biodesix’s Boulder, Colorado lab
SpeeDx (Australia) Cepheid
  • Products: SpeeDx’s PlexPCR and ResistancePlus multiplex real-time PCR products
  • Territories: UK, Germany, France and Italy
  • Expansion of current deal allowing Wallac to distribute Amplidiag in South Africa
LICENSES
Licensor Licensee Deal Summary
SISCAPA Assay Technologies Waters
  • Property: Stable isotope-labeled standards technology to be used by Waters for standardizing quantitative mass spec assays
  • Territory: Undisclosed
  • Non-exclusive
Inventors from Max Delbrück Center for Molecular Medicine, Genetic Information Research Institute and Paul Ehrlich Institute Horizon Discovery
  • Property: Transposon-based gene-editing technology
  • Territory: Undisclosed
  • Exclusive
SUPPLY, SERVICE & TESTING AGREEMENTS
Supplier Client Deal Summary
GenomOncology University of California, San Francisco
  • UCSF to use GenomOncology’s informatics platform to analyze and report results from its UCSF500 NGS cancer panel
Illumina Genomics England
  • GE to use Illumina’s BaseSpace Variant Interpreter for tumor and matched normal samples characterized as part of 100,000 Genomes Project
Personal Genome Diagnostics said today that it will now US Department of Veterans Affairs
  • PGD to provide its PlasmaSelect 64 liquid biopsy test to advanced cancer patients being treated at VA facilities
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