Fulgent Genetics has acquired CSI Laboratories to bolster its footprint in somatic molecular diagnostics and cancer testing markets.
The companies did not disclose the financial terms of the deal.
Established in 1997, CSI offers a client- and patient-oriented cancer diagnostic testing model for pathologists, community hospitals and patients.
The company has more than 400 cancer-focused tests as well as expertise in flow cytometry, cytogenetic analysis, fluorescence in-situ hybridization (FISH), immunohistochemistry and molecular genetics.
With the CSI acquisition, Fulgent plans to enter the somatic genetic testing market, which the company estimates to reach $16.8bn by 2030.
Furthermore, the deal will expand Fulgent’s technology and next-generation sequencing (NGS) capabilities in new oncology markets.
The merger will aid CSI to grow geographically and expand beyond the Southeastern part of the US.
To strengthen its presence in oncologic testing in the US, Fulgent will combine its technology platform, NGS capabilities, lab operations and sales infrastructure with CSI’s cancer testing portfolio.
CSI’s molecular diagnostics test menu integrated with Fulgent’s NGS capabilities, including its technology platform, is expected to enable a new, complete cancer testing solution for US clients.
Fulgent chief medical officer Dr Larry Weiss will handle the incorporation of CSI’s expertise into Fulgent’s platform and the company’s future cancer testing efforts.
Weiss said: “We expect CSI will serve as an anchor to Fulgent’s cancer testing capabilities, bringing their expertise and experience to a national oncologic centred client base, and expanding their broad pathology and molecular offerings by leveraging Fulgent’s leadership in next-generation sequencing.
“We expect the addition of CSI will deliver customers a superior experience relative to competitors who offer one-dimensional NGS testing or broader menus without NGS expertise.”
Furthermore, Fulgent intends to boost the scale of CSI’s offerings by setting up a new cancer testing laboratory in California.
This lab would complement the current operations of CSI in Alpharetta, Georgia, Fulgent noted.
Separately, Fulgent and Helio Health have formed a strategic collaboration to market the latter’s blood-based early cancer detection tests.
Fulgent made a strategic investment in Helio on obtaining exclusive commercial rights for laboratory-developed tests (LDTs) in the US and Canada.
In the initial stage of the deal, the companies will market and co-brand a cell-free DNA methylation blood test, HelioLiver, for hepatocellular carcinoma or liver cancer detection.