NEW YORK (GenomeWeb News) – Myriad Genetics has informed Crescedo Bioscience of its “preliminary, non-binding interest” in acquiring the company, Myriad said in a regulatory document today.
The Salt Lake City firm informed Crescendo of its interest on Tuesday after Crescendo sent notice to Myriad on Nov. 14 that it had achieved a minimum revenue milestone, which gave Myriad the option to acquire Crescendo.
Myriad had made a $25 million investment in Crescendo in 2011 and as part of the investment Myriad received a three-year option to acquire Crescendo at its discretion. South San Francisco, Calif.-based Crescendo develops molecular diagnostic tests. Its lead product is the Vectra DA for rheumatoid arthritis.
If Myriad decides to purchase Crescendo, the purchase price will be “determined in accordance with the” merger agreement forged between the companies in 2011 concurrent with the $25 million investment, Myriad said in its document filed with the US Securities and Exchange Commission today. It added that if it buys Crescendo, it anticipates funding the deal with cash, cash equivalents, and marketable securities available on hand. As of Sept. 30 that amount was $515.6 million.
A deal would be completed during Myriad’s Fiscal Year 2014, ending June 30, it said.