Molecular diagnostics technology producer Veracyte has agreed to buy HalioDx, a France-based cancer diagnostics technology developer backed by health insurance provider Sham, for appproximately €260m ($318m).
The deal, which is comprised of about $180m in cash and up to $138m in stock, is expected to close in the third quarter of this year.
Founded in 2014, HalioDx is developing diagnostics tests used by oncologists to support the care of cancer patients. It also supplies its products and services to drug developers.
The company’s Immunoscore test uses image analysis technology to measure cancer patients’ immune system response to tumours in order to help doctors make more informed decisions about the use of chemotherapy in cancer patient treatment.
The deal will involve HalioDx becoming a subsidiary of Veracyte and continuing to operate out of France and the United States.
Vincent Fert, chairman and CEO of HalioDx, said: “The transaction gives us the opportunity to significantly accelerate the scale and scope of our offerings and continue investing in our innovative Immunogram multimodal analysis platform, which is proven in its ability to help biopharma partners understand and predict patient response to immunotherapy.”
HalioDx completed its $22.3m series B round in 2018, raising the cash from Sham’s corporate venturing vehicle, Sham Innovation Santé, as well as investment holding company MI Care, Amundi Private Equity Funds, Quest for Growth and French state-owned investment bank BPIfrance’s PSIM fund.
Sofipaca and BNP Paribas Development, subsidiaries of financial services firms Credit Agricole and BNP Paribas respectively, also took part in the 2018 round.
The company had picked up $9.2m of series A funding from unnamed investors in 2015 but described MI Care, Sham Innovation Santé, BNP Paribas Development and Sofipaca as existing investors as of the series B round.