Molecular diagnostics system provider Exact Sciences agreed yesterday to buy one of its portfolio companies US-based cancer screening technology developer Thrive Earlier Detection, for up to $2.15bn in cash and stock.
Exact Sciences will make a $1.7bn upfront payment made up of 65% of stock and 35% of cash while the remaining $450m will be subject to milestones. The deal is expected to conclude in the first quarter of 2021.
Founded in May 2019, Thrive is working on a blood test called CancerSeek that can be integrated into routine medical care to detect multiple forms of cancer at an early stage.
Exact Sciences will continue to drive the development of CancerSeek. It has concurrently acquired Base Genomics, an epigenetics spinout of Ludwig Cancer Research and University of Oxford, for $410m, to further enhance its cancer diagnostics capabilities.
David Daly, chief executive of Thrive, said: “Thrive is driven by the knowledge that if cancer is caught early enough, it can be more effectively treated or even cured, and every patient deserves a chance for a better outcome.
“Our team has made significant progress toward our mission and we are eager to collaborate with and benefit from Exact Sciences’ expertise, and believe that together we will enable broader, quicker adoption of our test.”
Thrive had previously raised $257m in a July 2020 series B round co-led by life sciences investment firm Casdin Capital and venture capital firm Section 32.
The round also featured Bain Capital Life Sciences, Brown Advisory, Driehaus Capital Management, Intermountain Ventures, Janus Henderson Investors, Lux Capital, Moore Strategic Ventures, Perceptive Advisors, Rock Spring Capital, Sands Capital and unnamed investors including clients advised by T Rowe Price.
Third Rock Ventures, the VC firm that incubated Thrive, led a $110m series A round for the company in May 2019 that included Exact Sciences and BlueCross BlueShield Venture Partners, a corporate venturing vehicle representing 33 Blue Cross Blue Shield health insurers since renamed Blue Venture Fund.
Section 32, Casdin Capital, Biomatics Capital, Invus, Cowin Venture, Camden Partners and Gamma 3 also participated in the series A round.
The original version of this article appeared on our sister site, Global University Venturing.
