OR WAIT 15 SECS
The $12-million acquisition will strengthen Cancer Genetics Inc.’s (CGI) capabilities in drug discovery, drug development, and early phase clinical trial testing in the field of oncology.
On August 14, 2017 Cancer Genetics Inc. (CGI), a US-based provider of diagnostic products and services for precision medicines in oncology, announced that it has entered into a definitive agreement to acquire vivoPharm, an Australian-based contract research organization, for approximately $12 million. The transaction will strengthen CGI’s capabilities in cancer-drug discovery, in vivo and in vitro drug development, and early phase clinical trial testing for biotechnology and pharmaceutical companies. vivoPharm has more than a decade of experience in delivering discovery and preclinical services to support drug development, target validation, and biomarker analysis. The company has supported more than 200 investigational new drug (IND) submissions for therapies focused on immuno-oncology.
The $12-million purchase price will include $1.2 million in cash, and the remaining 90% will be shares of CGI common stock based on the volume weighted average price over the past 20 business days. The transaction has been approved by the boards of directors of both companies. Additionally, on August 14, CGI entered into an equity financing arrangement for up to $16 million to fund the acquisition and increase working capital. The initial tranche of funding will be $3 million, and additional tranches can be accessed by CGI at the company’s discretion over the next two years.
vivoPharm has developed capabilities in early phase development and discovery, especially in immuno-oncology models, tumor micro-environment studies, specialized pharmacology services, and PDx (patient derived xenograft) model studies that support basic discovery, preclinical, and Phase I clinical trials. The company specializes in planning and conducting specialized studies to guide drug discovery and development programs with a concentration in oncology and immuno-oncology, ranging from early compound selection to developing comprehensive sets of in vitro and in vivo data, as needed for FDA IND applications.
vivoPharm’s CEO and managing director, Dr. Ralf Brandt, will become president of Discovery & Early Development Services at CGI upon completion of the acquisition, which was scheduled to close on Tuesday, August 15, 2017. vivoPharm operates approximately 14,000 ft2 of laboratories in Melbourne, Australia, and Hershey, Pennsylvania, and maintains a presence in Munich, Germany.
Source: Cancer Genetics Inc.