Genomic testing technology developer Veracyte has agreed to buy Decipher Biosciences, a US-based peer backed by pharmaceutical group Merck & Co and healthcare provider UnitedHealth Group, for $600m.
The deal will entail Veracyte paying roughly 40% of the sum in cash and the remainder in stock consideration, subject to purchase price adjustments. It came in the wake of Decipher filing for an initial public offering in recent weeks.
Decipher was founded in 2008 as GenomeDx Biosciences, and has built genomic diagnostics products that primarily identify prostate and bladder cancers.
Veracyte is working on similar diagnostics tools focusing on breast, lung, thyroid cancers and idiopathic pulmonary fibrosis, a chronic lung disease caused by scarring of lung tissues.
Bonnie Anderson, Veracyte’s chairman and CEO, said: “By combining Decipher Biosciences’ leadership in urologic cancers with our comprehensive genomic testing menu, Veracyte will be able to serve patients across the clinical care continuum in seven of the 10 most prevalent cancers in the United States.”
Decipher closed a June 2020 round sized at $9.5m featuring Merck & Co and UnitedHealth Group Ventures, a corporate venturing subsidiary of UnitedHealth, as well as Baird Capital, CD-Venture, CRG, EVP Technology Fund, Tekla Capital Management and Yonghua International, the investors in a $20.6m round in early 2019.
Merck and UnitedHealth Group Ventures participated in a $15.7m series D round for the company in 2018, investing with Baird, CRG, EVP, Tekla Capital Management and Yonghua International.
Decipher had completed a $40.9m series C round in 2017 featuring Merck and EVP, its IPO draft prospectus stated, following a $25.4m round the year before, with the capital provided by undisclosed backers, according to a securities filing.
Merck’s Global Health Innovation fund led a series B round for the company in 2013, with contributions from Aeris Capital, Baird and CD-Venture, after the three had backed a series A round of similarly undisclosed size the previous year.
