NEW YORK – Oncocyte said on Thursday it has closed its planned second investment in Razor Genomics, becoming sole shareholder of the firm, which developed what has now become Oncocyte's first commercial assay, DetermaRx.
Oncocyte first announced it was acquiring the rights to develop and market Razor’s lung cancer treatment stratification test in 2019. At that time, the firm was granted an option to purchase the outstanding shares of Razor's common stock, exercisable upon the achievement of certain milestones by Razor, which it has now attained.
As part of the purchase price for Razor's outstanding common stock, Oncocyte said it has paid Razor shareholders $10 million in cash and issued them 982,318 shares of Oncocyte's common stock. This represents a market value of $5 million based on the $5.09 per share average closing price of Oncocyte common stock over the five days prior, Irvine, California-based Oncocyte said.
"The decision to acquire the rights to develop and market DetermaRx from Razor was a game-changing catalyst for our company as it has provided an important treatment decision-making tool for physicians and their patients, and has made us a revenue-generating company," Oncocyte CEO Ron Andrews said in a statement.