Global life sciences firm Labcorp has signed a definitive agreement to acquire Personal Genome Diagnostics (PGDx) in a deal valued at $575m.
Under the deal, the company will make $450m cash payment along with $125m in additional payment based on future performance milestones.
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PGDx provides comprehensive liquid biopsy and tissue-based genomic products and services.
Labcorp stated that the acquisition will expand its next-generation sequencing-based genomic profiling capabilities and accelerate the existing liquid biopsy capabilities with the addition of PGDx and its technology complements.
The company will offer PGDx’s technology to pharmaceutical companies for use in clinical trials to advance cancer treatments.
Labcorp chairman and CEO Adam Schechter 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.
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By GlobalData“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.”
PGDx’s offerings will enhance the technology scalability and support long-term growth across Labcorp’s oncology portfolio.
Subject to customary closing conditions and regulatory approvals, the transaction is anticipated to be completed in the first half of next year.
For the deal, Hogan Lovells and Kilpatrick Townsend served as legal advisors to Labcorp, while Cooley and Cowen acted as legal and financial advisors, respectively to PGDx.
In October this year, LabCorp received emergency use authorization (EUA) from the US Food and Drug Administration (FDA) for its combined at-home collection test kit for Covid-19 and influenza A/B.
