Cancer Genetics, a DNA-based diagnostics company focused on developing genomic-based oncology tests and services, announced the agreement to acquire BioServe Biotechnologies (India) for approximately $1.9 million, primarily in CGIX stock and other deferred consideration. The transaction is expected to close during the third quarter of 2014 and is subject to customary closing conditions and government approvals in India.
Under the terms of the agreement, BioServe Biotechnologies (India) (BioServe India), headquartered in Hyderabad, will become a subsidiary of CGI, and will be renamed Cancer Genetics India. CGI plans on retaining all 33 current employees of BioServe India, and further expanding and strengthening the sales and clinical teams in India. BioServe India currently operates out of a state-of-the-art 14,000-square-foot genomics facility in Hyderabad. BioServe India is backed by Ventureast, a pioneering venture capital institution based in India, which has enabled over 80 seed, early and growth stage businesses in a broad array of sectors including technology, life sciences and clean environment.
By utilising BioServe India’s molecular services, researchers can identify genetic markers, validate drug targets and correlate clinical and molecular data to accelerate the development of new and effective drugs. Additionally, BioServe India’s growing clinical diagnostics capabilities in oncology and next-generation sequencing are well-positioned to serve the needs of improving oncology diagnostics care and management throughout India.
“With Bioserve, CGI will become better positioned to increase our global presence in personalised cancer care and further improve outcomes and lower costs for cancer patients,” said Panna Sharma, Chief Executive Officer, Cancer Genetics. “The BioServe India team adds immediate positive impact, high-quality revenue, and provides a clear path to an accretive deal for shareholders. The infrastructure and enhanced capacities in next generation sequencing for oncology accelerate our development plans while positioning us to make more effective use of our capital.”
“It’s a proud moment for us at BioServe as we join forces with one of the leading cancer diagnostics providers. There are great synergies which we expect to unlock by combining our visions and teams together,” said Rama Modali, Founder, BioServe India.
EP News Bureau – Mumbai
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