NEW YORK (GenomeWeb News) – ExonHit Therapeutics today announced it is terminating its agreement to buy RedPath Integrated Pathology, following a decision by Medicare to limit its coverage for RedPath's portfolio of tests only to its pancreatic test.
The decision comes after ExonHit and RedPath were unable to agree on revised terms and conditions following the decision by Medicare contractor Highmark Medicare Services to cover only RedPath's TG-Pancreatic cancer test.
ExonHit's deal to purchase RedPath for as much as $32 million was originally announced in the spring, but soon hit a snag when Medicare contractor Highmark Medicare Services announced it intended to drop coverage of RedPath's PathFinder TG-Pancreatic cancer test, pending an assessment of the test.
Last month, after an appeal by RedPath, a personalized diagnostics firm based in Pittsburgh, ExonHit announced Highmark had decided to maintain coverage for the test. Apparently, though, other RedPath tests have been turned down by Highmark for coverage. The firms have not disclosed which tests have been rejected by the Medicare contractor.
In a statement, Paris-based ExonHit said it "maintains its objective to acquire a revenue-generating molecular diagnostic company" as part of its growth strategy.