NeoGenomics recently announced a definitive agreement to acquire clinical oncology laboratory Genoptix for $125 million in cash and 1 million shares of NeoGenomics' stock.
Based in Carlsbad, California, Genoptix specializes on hematology and solid tumor testing, and has well-established relationships with community oncology practices, a market that has not been served well with NeoGenomics' capabilities in next-generation sequencing and liquid biopsy, the company said.
Genoptix customers will be able to leverage NeoGenomics' comprehensive testing menu, broad portfolio of managed care and group purchasing organization contracts, and national laboratory infrastructure, NeoGenomics said, adding Genoptix's business complements NeoGenomics' leadership position with hospitals and pathologists.
In June Genoptix and MolecularMD reached a deal for Genoptix to market, distribute, and perform diagnostic testing services for the MRDx BCR-ABL companion diagnostic test. Genoptix also had planned to acquire Rosetta Genomics, a deal which ultimately failed to materialize. In the spring, Rosetta filed for Chapter 7 bankruptcy.
Today's deal is anticipated to add $85 million in revenue and break-even EBITDA in the first year, along with $25 million of cost synergies over time, Fort Myers, Florida-based NeoGenomics said.
"The acquisition of Genoptix enhances NeoGenomics’ leadership in the oncology test market, significantly expanding our coverage of oncology practices, increasing our customer reach and leaving us better positioned for growth," NeoGenomics Chairman and CEO Douglas M. VanOort said in a statement. "With what we believe to be the most comprehensive oncology test menu in the country and reach across all distribution channels, the combined company will be uniquely positioned in the oncology test market."
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