M&A Report

Invitae-ArcherDX Merger to Create Precision Oncology Powerhouse

While M&A deal volume remains abnormally low, business is expected to pick up this summer as the reopening process gets into high gear. Meanwhile, a few new deals are being made, including transactions of major strategic significance.

Invitae to Merge with ArcherDX

In one of the year’s most significant deals, Invitae announced on June 22 that it plans to acquire fellow cancer genetics firm ArcherDX for $1.4 billion, including $325 million in cash, 30 million shares of Invitae common stock upfront and 27 million more shares later upon the achievement of certain milestones.

The Financing: To finance the deal, Invitae plans to sell $275 million in common stock, $16.85 per share, in a private placement. The firm has also entered into a credit facility of up to $200 million with Perceptive Credit Opportunities Funds.

The Strategy: Already a leader in genetic testing to assess hereditary cancer risk, Invitae will bolster its tumor profiling services and liquid biopsy technology by acquiring ArcherDX’s precision oncology assets, including its Stratafide pan-cancer test for identifying actionable genomic alterations from blood and tissue samples and Personalized Cancer Monitoring platform to assess the progress of cancer treatment and detect early signs of recurrence.

“From the beginning, Invitae’s goal has been to aggregate the world’s genetic tests into a single platform in service of our mission to bring comprehensive genetic information into mainstream medicine,” noted Invitae CEO Sean George in a statement. In his own statement, ArcherDX CEO Jason Myers said that the firm’s products can help bring precision oncology into regional and community settings, where the majority of cancer patients receive care, and address an estimated $45 billion market opportunity.


Here’s a summary of the key M&A diagnostic deals announced in June 2020:

MERGERS, ACQUISITIONS & ASSET SALES
Acquiring Company Target(s) Deal Summary
Invitae ArcherDX
  • Price: $1.4 billion, including $325 million cash + 30 million shares of Invitae common stock + additional 27 million shares contingent on achieving milestones
  • Status: Merger agreement signed but no closing date announced
  • Merger enables Invitae  to add ArcherDX’s Invitae tumor profiling and liquid biopsy technologies + services
Illumina BlueBee
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of Netherlands-based bioinformatics firm boosts Illumina’s cloud-based genomic analysis capabilities
Foundation Medicine Lexent Bio
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of precision oncology firm enables Foundation Medicine expand its liquid biopsy platforms and advance cancer care
OncBioMune Pharmaceuticals Avant Diagnostics
  • Price: OncBioMune issued shares of its Series D-1 convertible preferred stock, which will convert to 4.4 billion shares of common stock; OncBioMune also raised $1.08 million in Series C-2 convertible preferred stock in a private placement
  • Status: Closed
  • Molecular profiling company to be renamed Theralink Technologies
 Medix Biochemica EastCoast Bio
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of antigens, antibodies, and blocking buffers producer expands Medix’s antibody and antigen offering in drugs of abuse, infectious disease and veterinary testing
OraSure Technologies UrSure
  • Price: $3 million cash + up to $28 million in post-closing contingent payments
  • Status: No closing date given
  • Acquisition of company that develops products measuring adherence to HIV medications

(-00000g2)