NeoGenomics to acquire liquid biopsy specialist Inivata in two-stage $415m acquisition
NeoGenomics Inc, a leading provider of cancer-focused genetic testing services and global oncology contract research services, has agreed to acquire Inivata.
The acquisition by the Fort Meyers, Florida company follows a $25million minority equity investment by NeoGenomics in Inivata in May 2020, at which time NeoGenomics secured a fixed price option to purchase the shares it did not own for a further $390million.
Inivata, with its leading liquid biopsy technology platform, will remain a separate business division alongside NeoGenomics’ growing clinical, pharma and informatics divisions. Current Inivata CEO Clive Morris will become the president of Inivata and will report to Mark Mallon, CEO of NeoGenomics.
Inivata will be focused on the continued development of leading liquid biopsy tests including RaDaR, the highly sensitive personalized assay for the detection of residual disease and recurrence (MRD).
Proof-of-principle data presented at this year’s AACR Annual Meeting showed RaDaR demonstrated excellent specificity (100 per cent) and sensitivity (100 per cent) in detecting MRD in patient cohorts with head and neck cancer and early-stage breast cancer.
Clive Morris, president of Inivata, said: “Joining the NeoGenomics Group provides Inivata with an excellent foundation to support our growth ambitions. Our two organisations have highly complementary capabilities and we are excited to combine with NeoGenomics following a successful year of working together.
“By leveraging our combined resources, we expect to accelerate the development of our promising RaDaR minimal residual disease assay and bolster commercialization efforts with biopharma before driving a successful launch into the clinical setting.”
Inivata’s Cambridge operation will remain the same, and Inivata and NeoGenomics will work together to accelerate both RaDaR and InVisionFirst-Lung (liquid biopsy), including through further strategic partnerships.
The process from the initial investment to the acquisition was organic, says Clive.
He said: “During the year in which NeoGenomics have worked with Inivata they have witnessed the strength of our technology and the significant potential of our liquid biopsy products, particularly RaDaR.
“NeoGenomics have decided to exercise their option to buy Inivata in order to strengthen their liquid biopsy offering with Inivata operating as a liquid biopsy focused division.
“The acquisition will accelerate the roll out of our pioneering products to the patients who need them.”
Mark Mallon added: “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 Inivata and its world-leading liquid biopsy platform technology.
“We are exercising our option to purchase Inivata eight months ahead of plan and are delighted to welcome Inivata’s world class team of liquid biopsy experts and talented employees to NeoGenomics.”
Douglas M VanOort, executive chairman of NeoGenomic, concluded: “Testing for minimal residual disease has the potential to revolutionize oncology care to benefit millions of patients as they manage through their cancer journey and we are excited to innovate our offerings with Inivata’s best-in-class platform.
“Combining Inivata’s compelling technology with our unrivaled reach into the clinical community channel and existing relationships with biopharma is a winning strategy.”
Read more
Inivata launches RaDaR test to identify residual disease and relapse in cancer patients
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