Digital health specialist Profusa has inked an option agreement to acquire G3 Vision Labs and its subsidiaries, giving the company a route to add an arsenal of diagnostics to its commercial portfolio.
Under the terms of the deal, Profusa can only exercise its option to take over G3 and its three subsidiaries – Dominion Diagnostics, Med Screen Laboratories and Acutis Diagnostics – if several conditions are met. These include obtaining shareholder approval, raising at least $30m in financing, and G3 resolving indebtedness, amongst others.
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To encourage support from G3 stockholders, Profusa is offering 201,120 shares of its common stock alongside 52,903.566 shares of Series A non-voting convertible preferred stock. If shareholders exercise their option, Profusa will also offer 53,918.114 in Series A preferred stock.
G3’s revenue in 2025 was estimated to be approximately $111m, according to Profusa. By acquiring G3, which primarily operates in the fields of pain management, behavioural health and addiction treatment, Profusa would add a series of laboratory tests to its portfolio, including molecular diagnostic tools for infectious disease, as well as urine clinical blood-based toxicology tests for use by health providers across the US. The company would also absorb G3’s range of autoimmune and tissue analysis services.
This would significantly extend California-based Profusa’s portfolio offering, which is largely centred around its range of continuous, real-time biosensors for both oxygen and glucose monitoring. If the acquisition goes ahead, Profusa expects the combined entity to operate as a public diagnostics company.
Profusa’s CEO Jack Stover said the agreement marked a “significant opportunity, subject to satisfaction of the specified conditions, to acquire the growing regional diagnostics business of G3.”
Currently, GlobalData estimates that the value of the in vitro diagnostics market will reach nearly $60bn in 2035, representing a compound annual growth rate (CAGR) of 3.6% from the segment’s 2025 value.
However, investors do not seem enamoured with the prospects of this potential acquisition, as Profusa’s stock value was down around 9% in pre-trading from a value of $1.06 at close on 31 July to $0.96 on 3 August, correct at 4.23AM GMT-4. Profusa has a market cap of $561,800.
Diagnostics balloon shifts precision medicine
As researchers, clinicians and device developers uncover the promise of precision medicine and its potential to boost outcomes, diagnostic tests are increasingly entering the limelight due to their ability to identify ideal candidates for treatment.
In a previous comment piece for Medical Device Network, Karan Arora, SVP of advanced assays, AI, and pharma services at Leica Biosystems outlined the key role that companion diagnostics (CDx) will play in unlocking the promise of precision medicine.
However, Arora noted that CDx development often lags behind drug development, which can create bottlenecks and slow regulatory approvals.
