Skip to main content
Premium Trial:

Request an Annual Quote

MDxHealth Acquires Prostate Cancer Testing Business From Exact Sciences for up to $100M

NEW YORK – MDxHealth said on Tuesday that it has acquired the Oncotype DX GPS prostate cancer testing business from Exact Sciences subsidiary Genomic Health in a deal worth up to $100 million.

Under the terms of the agreement, MDxHealth paid Exact $25 million in cash and will deliver 691,171 American depositary shares (ADS) worth approximately $5 million. Exact Sciences may receive up to $70 million based on additional revenue milestones in fiscal years 2023 through 2025. MDxHealth has the option to settle these milestone payments in cash or through the issuance of additional shares.

Jefferies acted as financial adviser to MDxHealth and Foley Hoag as legal counsel.

MDxHealth financed the acquisition in part through a $35 million loan and security agreement with an affiliate of Innovatus Capital Partners, replacing its existing €9 million ($9.1 million) debt facility with Kreos Capital, and has the option to draw an additional $35 million from Innovatus. The loans are secured in part by intellectual property rights. The remaining proceeds of the loan will be used for working capital and to fund general business requirements, MDxHealth said in a statement.

The firm also reported preliminary financial results for the second quarter.

For the three months ended July 30, Belgium-based MDxHealth had revenues of $6.9 million, up 22 percent from the year-ago quarter.

As of June 30, the firm had cash and cash equivalents of $40 million.

MDxHealth increased its full-year revenue guidance for its existing business to between $27 million and $29 million, up from $25 million to $27 million, representing anticipated growth of 21 percent to 30 percent over the prior year. The firm also increased its total revenue guidance to between $40 million and $42 million, up approximately 80 percent to 89 percent, including $13 million in revenues from Oncotype DX GPS from August to December 2022.

MDxHealth completed an initial public offering of ADSs in November 2021, raising approximately $45 million in gross proceeds.

The Scan

Cell Signaling Pathway Identified as Metastasis Suppressor

A new study in Nature homes in on the STING pathway as a suppressor of metastasis in a mouse model of lung cancer.

Using Bees to Gain Insights into Urban Microbiomes

As bees buzz around, they pick up debris that provides insight into the metagenome of their surroundings, researchers report in Environmental Microbiome.

Age, Genetic Risk Tied to Blood Lipid Changes in New Study

A study appearing in JAMA Network Open suggests strategies to address high lipid levels should focus on individuals with high genetic risk and at specific ages.

Study Examines Insights Gained by Adjunct Trio RNA Sequencing in Complex Pediatric Disease Cases

Researchers in AJHG explore the diagnostic utility of adding parent-child RNA-seq to genome sequencing in dozens of families with complex, undiagnosed genetic disease.