NEW YORK (GenomeWeb News) – ExonHit Therapeutics said today that it has agreed to buy personalized diagnostics company RedPath Integrated Pathology in a deal that could be worth a total of $32 million.
Paris-based ExonHit plans to buy RedPath, a developer of DNA-based cancer tests, for $12.5 million upfront, another $10 million in stock, and for sales milestone payments that could total another $9.5 million.
RedPath, which is headquartered in Pittsburgh, Penn., has launched the PathFinderTG molecular diagnostic assay for pancreatic cancer, and it is developing another test to differentiate primary from metastasis tumors. RedPath also has two testing service programs in late-stage development and several earlier-stage development programs also focused on oncology testing, ExonHit said.
"The acquisition of RedPath is a significant milestone in ExonHit’s strategy to become an internationally recognized player in molecular diagnostics," Loic Maurel, president of ExonHit's management board, said in a statement.
Maurel said that the deal will strengthen ExonHit’s US presence, which he said represents around 55 percent of the molecular diagnostics market. He also said that the acquisition “will give ExonHit a new dimension, with an innovative offering in oncology, the fastest-growing segment in molecular diagnostics.”
Integrating RedPath’s DNA technology with ExonHit’s RNA-based platform business “will allow for the possibility of more accurate diagnostic tests” and will give the firm a stronger IP position, ExonHit said.
The deal, which is subject to approval by ExonHit’s shareholders at an upcoming meeting, is expected to close before mid-July.