Skip to main content
Premium Trial:

Request an Annual Quote

Cancer Genetics Selling Indian Subsidiary to Reprocell for up to $1.9M

NEW YORK (GenomeWeb) – Cancer Genetics announced today that it plans to sell its wholly owned subsidiary, BioServe Biotechnologies, to Reprocell for up to $1.9 million.

Under the terms of the acquisition, Reprocell , a Japanese stem cell research company, will pay Cancer Genetics $1.6 million upfront. The remaining balance will be payable about six months after the deal's closing, subject to BioServe's revenues for a four-month period after closing being equivalent to the same four-month period in 2017.

Cancer Genetics acquired BioServe, a genomics and next-generation sequencing services firm based in India, in 2014 for $1.9 million, primarily in stock and other deferred considerations. It manufactures molecular diagnostic kits and provides genomic services to the research and clinical markets.

In a statement, Cancer Genetics interim CEO Jay Roberts said that the agreement with Reprocell follows Cancer Genetics' 2018 transformation and strategic plan to bring the company to profitability. The firm is in the midst of a turnaround effort following the departure of its former CEO Panna Sharma, and a number of lawsuits alleging it made false and/or misleading statements, and/or failed to disclose information pertinent to investors.

Earlier this month, the firm announced it was evaluating its strategic opportunities, which include raising capital, acquiring other firms and/or complementary assets, the sale of the firm, or other types of strategic partnerships. and has hired Raymond James as an advisor during the process.

The divestiture "is one of several deliberate actions to focus our business, simplify our operating structure and generate monetary value to help fund new programs and assist in reducing overall operating expenses," Roberts said in today's statement, adding that his firm will explore licensing opportunities with Reprocell and other international partners to bring Cancer Genetics' tests and services overseas.

In 2014 Reprocell acquired a Beltsville, Maryland-based genomics services business also called BioServe.

The Scan

Could Mix It Up

The US Food and Drug Administration is considering a plan that would allow for the mixing-and-matching of SARS-CoV-2 vaccines and boosters, the New York Times says.

Closest to the Dog

New Scientist reports that extinct Japanese wolf appears to be the closest known wild relative of dogs.

Offer to Come Back

The Knoxville News Sentinel reports that the University of Tennessee is offering Anming Hu, a professor who was acquitted of charges that he hid ties to China, his position back.

PNAS Papers on Myeloid Differentiation MicroRNAs, Urinary Exosomes, Maize Domestication

In PNAS this week: role of microRNAs in myeloid differentiation, exosomes in urine, and more.