Labcorp to acquire Personal Genome Diagnostics in $575m worth deal
Labcorp, a North Carolina-based life sciences company, has agreed to acquire Personal Genome Diagnostics (PGDx), a provider of liquid biopsy and tissue-based genomic products and services, in a deal worth up to $575 million.
According to Labcorp, the Maryland-based Personal Genome Diagnostics alongside its technology complements and expedites its existing liquid biopsy capabilities and grows its oncology portfolio of next-generation sequencing (NGS)-based genomic profiling capabilities. These are expected to position Labcorp in driving improved patient outcomes in oncology.
Besides, Personal Genome Diagnostics is said to improve Labcorp’s ability to expand access to oncology care via kitted solutions that enable laboratories and hospital systems to internally run the tests. This will help deliver precision diagnostics closer to the patient and in narrowing a common gap in the provision of cancer care, said Labcorp.
Furthermore, Labcorp stated that its global reach offers the scope to bring Personal Genome Diagnostics’ technology to pharma companies for clinical trial research to advance treatments of cancers, thereby possibly affecting clinical outcomes in cancer patients.
Personal Genome Diagnostics also boasts of a diagnostic kit that has approval from the US Food and Drug Administration (FDA) for pan-solid cancer tumor profiling using a 500 plus gene panel.
Adam Schechter — chairman and CEO of Labcorp said: “Labcorp’s leadership and scale in diagnostic testing and drug development, coupled with PGDx’s innovative technology and suite of capabilities, will accelerate access to personalized treatments for cancer patients globally.
“PGDx’s comprehensive portfolio of next-generation sequencing products will meaningfully add to our breadth of capabilities, in line with our strategic priority to lead in oncology. PGDx’s technology is well positioned in an important segment with strong growth prospects.”
As per the terms of the deal, Labcorp will pay Personal Genome Diagnostics $450 million in cash at closing and an additional amount of up to $125 million, which will be contingent on future performance milestones.
Megan Bailey — CEO of Personal Genome Diagnostics said: “We share Labcorp’s vision of improving health care decisions and outcomes through science, data and a continued commitment to innovation.
“For over a decade, PGDx has made great progress toward that goal. As a part of the Labcorp family, we have an incredible opportunity to broaden and accelerate our impact on cancer care through Labcorp’s global reach.”
The revenues of Personal Genome Diagnostics in 2021 are anticipated to be around $22 million. Its revenues for 2022 are projected to grow to around $40 million.
The deal, which is subject to regulatory approvals and customary closing conditions, is likely to be wrapped up in the first half of 2022.