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Cancer Genetics to Buy PGx Firm Gentris for up to $6.25M

NEW YORK (GenomeWeb) – Cancer Genetics today announced it has signed a non-binding letter of intent to buy Gentris for up to $6.25 million.

The deal, which will be treated as an asset purchase, is made up of $3.25 million in cash and $1.5 million in Cancer Genetics stock. It also includes up to $1.5 million from Cancer Genetics in performance-based earn-outs. The acquisition is expected to close in the third quarter.

Based in Morrisville, NC, Gentris provides pharmacogenomics, genotyping, and biorepository services to pharmaceutical and biotech companies. It was founded in 2001 and integrates pharmacogenomics into drug development and clinical trial programs. Cancer Genetics said that Gentris has extensive experience with GLP and CLIA regulations and with regulatory agencies and practices in the US, Europe, China, and Japan.

Gentris also has a US Food and Drug Administration-compliant satellite laboratory in Shanghai, and upon completion of the deal, the company will be fully integrated into Cancer Genetics. More than 40 of Gentris' employees, including its founder Michael Murphy, will be absorbed by Cancer Genetics. Murphy will serve as general manager during the integration of the Raleigh facility. Gentris board member and director Howard McLeod will join Cancer Genetics' scientific advisory board.

"Gentris has world class expertise in pharmacogenomics that will be highly complementary to our existing oncology diagnostic business," Cancer Genetics CEO Panna Sharma said in a statement. "We view this acquisition as part of our long-range strategic plan to deepen our capabilities in developing unique and individualized treatment insights in oncology. Gentris will add immediate incremental revenue, and
through its established client base and relationships, will give us tremendous access to the biotech and pharmaceutical communities."

"By combining our expertise with Cancer Genetics, we expand the opportunity to service the large, global pharmaceutical companies that already are our customers and also bring together the analysis of somatic and germline genetic changes that drive cancer growth and treatment response," Gentris Chairman Tim Gupton said.

The acquisition is the second by Cancer Genetics in recent months. Last month, the Rutherford, NJ-based cancer diagnostics firm said it would purchase Indian genomics and next-generation sequencing services company BioServe for $1.9 million.

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