Skip to main content
Premium Trial:

Request an Annual Quote

Novartis to Acquire Genoptix for $470M

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Novartis has signed a definitive agreement to acquire personalized diagnostics lab services firm Genoptix for approximately $470 million.

Novartis will pay $25 per share in cash for all of the outstanding shares of the Carlsbad, Calif.-based company. The purchase price represents an approximately 27 percent premium to Genoptix's Friday closing price on the Nasdaq of $19.76.

The acquisition will provide Novartis with a lab testing services business that focuses on cancers of the blood and solid tumors. Genoptix uses a variety of technologies, including flow cytometry, cytogenetics, FISH, and molecular tests to provide personalized diagnostic results. Through its flagship Compass service, Genoptix correlates DNA sequencing results with these technologies to arrive at a patient-specific diagnosis.

Genoptix CEO Tina Nova said that the firm would become part of the Novartis Molecular Diagnostics unit.

Genoptix's board recommended that the firm's shareholders tender their shares in the deal. The firms expect to close the transaction in the first half of this year.

In a research note issued this morning, Mizuho Securities Analyst Peter Lawson wrote," The acquisition fits in with Noavrtis' partnership with Gen-Probe for blood screening, and complements their hematology oncology drug franchises, namely Gleevec for leukemia."

Novartis launched its MDx unit around two years ago in an effort to improve co-development of drugs with companion diagnostics. The firm has since inked a handful of alliances aimed at furthering its strategy in the MDx field, including a recent alliance with Foundation Medicine.

The Scan

Study Examines Insights Gained by Adjunct Trio RNA Sequencing in Complex Pediatric Disease Cases

Researchers in AJHG explore the diagnostic utility of adding parent-child RNA-seq to genome sequencing in dozens of families with complex, undiagnosed genetic disease.

Clinical Genomic Lab Survey Looks at Workforce Needs

Investigators use a survey approach in Genetics in Medicine Open to assess technologist applications, retention, and workforce gaps at molecular genetics and clinical cytogenetics labs in the US.

Study Considers Gene Regulatory Features Available by Sequence-Based Modeling

Investigators in Genome Biology set sequence-based models against observational and perturbation assay data, finding distal enhancer models lag behind promoter predictions.

Genetic Testing Approach Explores Origins of Blastocyst Aneuploidy

Investigators in AJHG distinguish between aneuploidy events related to meiotic missegregation in haploid cells and those involving post-zygotic mitotic errors and mosaicism.