Interpace Diagnostics buys biopharma business from Cancer Genetics

Interpace Diagnostics Group, Inc., a fully integrated commercial and bioinformatics company, has recently announced the acquisition of assets and liabilities of the Biopharma Services business of Cancer Genetics Inc. in a deal worth approx. $23.5 million, which will be subject to specific adjustments. Apparently, the acquisition is anticipated to establish a prominent oncology testing and services company in the Biopharma and clinical diagnostic markets, to leverage new algorithms, sophisticated assays and custom service capabilities across the continuum of oncology. This includes drug discovery to precancerous assessment and clinical trial support. Along with this acquisition, Ampersand Capital Partners, a leading private equity firm in the biopharma/diagnostic sector has agreed to invest around $27 million in Interpace in two tranches of recently issued convertible preferred stock, a part of which will be subject to approval by shareholders of Interpace. Sources familiar with the matter informed that in 2018, the Biopharma Business of Cancer Genetics had reported its net revenue at around $15 million. Interpace expects that the BioPharma Business has substantial opportunities from the Interpace molecular business, to further add new clients and grow revenue over time. Seemingly, Interpace further expects that the combined organization has the potential to be a top leader in the precision and personalized medicine space by providing advanced diagnostics, data solutions, marker testing, and biopharma services. The BioPharma Business will keep offering its full suite of molecular and biomarker-based tests for immuno-oncology and oncology drug development customers, functioning out of its present laboratories in Research Triangle Park NC, and Rutherford, NJ. Sources further mentioned that under the terms of the acquisition agreement, Interpace buys the BioPharma Business in response to a Uniform Commercial Code Article 9 transaction through which secured creditors were formally paid off and Interpace made a further payment of around $4.5 million to Cancer Genetics, using profits from the early financing provided by Ampersand. Interpace has also issued to Cancer Genetics $7.7 million in 6% interest bearing note which would be due upon the second tranche investment of Ampersand and Interpace’s shareholder approval.   Source Credit: https://www.interpacediagnostics.com/news-media/press-releases/detail/146/interpace-diagnostics-acquires-cancer-genetics-biopharma