NEW YORK – Laboratory Corporation of America said Thursday that it has agreed to acquire cancer genomics firm Personal Genome Diagnostics (PGDx) for $450 million in cash and $125 million in additional payments based on future performance milestones.
Burlington, North Carolina-based Labcorp said the acquisition would expand its next-generation sequencing genomic profiling capabilities and add to its existing liquid biopsy assets, providing kit-based options that will allow hospitals and laboratories to run tests internally.
Labcorp added that it also plans to offer Baltimore-based PGDx's technology for use in clinical trials of cancer treatments.
PGDx offers tissue-based and liquid biopsy cancer genomic profiling assays, among them a US Food and Drug Administration-cleared pan-cancer solid tumor profiling test kit covering 500-plus genes. The company expects revenues of roughly $22 million in 2021 and has projected revenues of nearly $40 million in 2022.
"Labcorp’s leadership and scale in diagnostic testing and drug development, coupled with PGDx’s innovative technology and suite of capabilities, will accelerate access to personalized treatments for cancer patients globally," Adam Schechter, chairman and CEO of Labcorp, said in a statement. "PGDx’s comprehensive portfolio of next-generation sequencing products will meaningfully add to our breadth of capabilities, in line with our strategic priority to lead in oncology."
"We share Labcorp’s vision of improving healthcare decisions and outcomes through science, data, and a continued commitment to innovation," said Megan Bailey, CEO of PGDx. "For over a decade, PGDx has made great progress toward that goal. As a part of the Labcorp family, we have an incredible opportunity to broaden and accelerate our impact on cancer care through Labcorp’s global reach."
The deal is expected to close in the first half of 2022.