Molecular diagnostics company Myriad Genetics has entered a definitive agreement to purchase carrier and non-invasive prenatal screening provider Counsyl for a total consideration of $375m.
Over the past year, Counsyl generated more than $134m in revenue and performed about 280,000 reproductive genetic tests.
The acquisition is expected to help Myriad cater to the estimated 900,000 carrier and about 1.3 million non-invasive prenatal screening tests in the US during its fiscal year 2018.
Myriad forecasts a double-digit growth rate with a total of around 3.5 million reproductive genetic tests to be conducted across the country in the fiscal year 2023.
The company additionally expects Counsyl’s Foresight and Prelude tests to complement its hereditary cancer test in the women’s health offerings.
Foresight involves more than 175 clinically actionable conditions, while Prelude is a non-invasive prenatal screening test.
The combination of Myriad’s 225 women’s health sales representatives with Counsyl’s 80 sales professionals is expected to result in a three-fold growth in physician reach for reproductive testing.
Myriad Genetics president and CEO Mark Capone said: “By offering Counsyl’s best-in-class reproductive testing products in conjunction with Myriad’s leading hereditary cancer tests, we are well positioned to be the premier women’s health genetic testing company.
“The Counsyl management team has a remarkable track record of success, and combining our commercial capabilities will lead to a three-fold increase in physician reach for Counsyl’s reproductive tests.”
Subject to customary closing conditions and regulatory approvals, the transaction is expected to be completed in the first-quarter of Myriad’s next fiscal year.
After closing, Counsyl will become a wholly-owned subsidiary of Myriad.