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FORT MYERS — Leading cancer-focused genetic testing services firm NeoGenomics has acquired a British-based liquid biopsy firm, Inivata.
Fort Myers-based NeoGenomics invested $25 million into Cambridge-based Inivata in May 2020, according to a statement. At the time of the investment, NeoGenomics was granted a fixed price option to purchase the remainder of Inivata for $390 million prior to Dec. 31, 2021.
The cash purchase price will be funded with balance sheet cash and through a private placement of equity, with the expected gross proceeds of $200 million, led by a group of institutional investors, the release adds. The list includes legacy Inivata shareholders, existing NeoGenomics investor and a number of leading oncology-focused specialist investors. Pending customary closing conditions, the acquisition is expected to close concurrently with the private placement in June 2021, the release adds.
Inivata’s InVision platform, the release states, unlocks essential genomic information from a simple blood draw to guide and personalize cancer treatment, monitor response and detect relapse. Its technology is based on research from the Cancer Research UK Cambridge Institute, University of Cambridge. Its lead product, InVisionFirst-Lung is commercially available internationally and through NeoGenomics in the US.
"NeoGenomics has spent the better part of the last year working in partnership with the exceptional team of professionals at Inivata while conducting confirmatory due diligence on the business and its world-leading liquid biopsy platform technology. We are exercising our option to purchase Inivata eight months ahead of plan at what we believe is an attractive value in today's M&A marketplace for liquid biopsy companies," NeoGenomics CEO Mark Mallon says in the release. "We are delighted to welcome Inivata's world class team of liquid biopsy experts and talented employees to NeoGenomics."
Inivata will become a liquid biopsy focused division alongside NeoGenomics' growing clinical, pharma and informatics divisions, the release states. Current Inivata CEO Clive Morris, will become president of Inivata and will report to Mallon.
"NeoGenomics has a long history of successful market share gains by serving as a trusted diagnostic testing partner for oncologists, pathologists, and biopharma,” NeoGenomics Executive Chairman Doug VanOort says in the release. "Excellent service and a comprehensive menu have been important drivers of success, in addition to our ability to successfully innovate with the rapidly evolving oncology diagnostics landscape. The addition of Inivata's world class liquid biopsy technology platform further broadens our comprehensive portfolio of oncology testing solutions for the marketplace."
NeoGenomics specializes in cancer genetics testing and information services, providing oncology-focused testing menus to help physicians diagnose and treat cancer. The publicly traded firm (Nasdaq, symbol: NEO) has 1,750 employees and posted $445.5 million in revenue in 2020.
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