Veracyte has agreed to acquire an immuno-oncology diagnostics company, HalioDx, for total consideration of about $317m (€260m) to boost its presence in the cancer diagnostics segment globally.
The deal value comprises nearly $179m (€147m) in cash and up to about $137.5m (€113m) in stock, the company noted.
HalioDx focuses on delivering diagnostic products and services to oncologists and drug development companies.
It has an array of immune assessment solutions, which includes the Immunoscore assay. This assay can measure the immune contexture of a tumour as a crucial determinant of the outcome and response of patients to cancer therapies.
Veracyte executive chairwoman Bonnie Anderson said: “Our prior strategic acquisitions brought exclusive global access to a best-in-class diagnostic platform and a significantly expanded cancer testing menu.
“We believe HalioDx will help fuel our global growth by accelerating In Vitro Diagnostics (IVD) test development and manufacturing operations in Europe and by expanding our scientific expertise into the emerging immuno-oncology field.”
The acquisition of HalioDx will aid Veracyte in developing and producing test kits for the nCounter diagnostic platform in Europe and various other markets globally.
The company plans to shift the production of the kits to HalioDx’s manufacturing plant in Marseille, France. At present, the kits are being manufactured by NanoString Technologies.
In December 2019, Veracyte signed a definitive agreement with NanoString for the exclusive global licence to the latter’s nCounter platform for diagnostic use.
The Immunogram multimodal analysis platform of HalioDx will provide Veracyte with pipeline development opportunities for various indications. It could also act as a platform to develop the biopharma partnering business of Veracyte.
HalioDx’s immuno-oncology capabilities complement Veracyte’s cancer genomics expertise and its genomic content biorepository developed from whole transcriptome data.
Furthermore, the latest deal will expand the scope of Veracyte’s cancer diagnostics to eight of the ten top cancers in the US.
The Immunoscore test, which aids in colorectal cancer treatment decisions, will enhance Veracyte’s menu of diagnostic tests meant for unmet needs in the patient care continuum.
On conclusion of the deal, which is anticipated in the third fiscal quarter of this year, HalioDx will become a Veracyte subsidiary.
Operations and labs of HalioDx will continue in Marseille, France and Richmond, Virginia, US, after the acquisition.