Genetic information provider Invitae agreed yesterday to acquire US-based genetic testing technology developer ArcherDX in a deal valued at about $1.4bn that will allow medical researcher Qiagen to exit.
The transaction will consist of $325m in cash and 30 million shares of Invitae stock, which have subseuqently risen some 40% to $27.30 since Friday, in addition to 27 million more shares dependent on certain milestones being met.
ArcherDX has created a range of precision oncology products informed by genetic sequencing technology and bioinformatics software to assist in cancer research. It had been preparing a regulatory submission for its debut in-vitro diagnostics product in late 2020.
The company was formed in 2015 when Qiagen bought the Enzyme Solutions division of biological research technology provider Enzymatics. It had filed for a $100m initial public offering earlier this month.
Invitae plans to incorporate ArcherDX’s technology into a full-scale platform for genetic-based cancer care that will include technologies such as tumour profiling, germline testing and liquid biopsies.
The deal comes after about $150m in funding for ArcherDX across three rounds from early 2018 to December 2019. Its investors include Boulder Ventures, PBM Capital Group, Longwood Fund, Peierls Foundation, Perceptive Advisors, Redmile Group, Soleus Capital, Driehaus Capital Management, Sands Capital and ArrowMark Partners.
Sean George, Invitae’s co-founder and CEO, said: “Integrating all aspects of cancer genetics can transform care for patients and the flexibility that comes from both centralised and decentralised capabilities will uniquely position Invitae to meet the needs of customers worldwide.
“By joining together, we will unite world-class capabilities in the hands of a talented team with complementary expertise and strong brands in service of a shared goal to improve healthcare for patients.”
