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OpGen to Acquire MDx Firm AdvanDx; Inks $6M Financing With Merck GHI

NEW YORK (GenomeWeb) – OpGen today said that it has reached a deal to acquire molecular diagnostics company AdvanDx for an undisclosed amount. 

The company also announced a $6 million financing with Merck Global Health Innovation Fund (Merck GHI). 

Based in Woburn, Massachusetts, AdvanDx develops molecular diagnostic products to diagnose and treat life-threatening infections. It has three product families, PNA FISH for the rapid identification of bacteria and yeast directly from positive blood cultures; QuickFISH for identifying bacteria and yeast in 20 minutes; and XpressFISH for detecting resistance markers from positive blood cultures. 

The acquisition will provide OpGen with a family of Food and Drug Administration-approved and CE-marked tests for use with its Acuitas MDRO Gene tests and bioinformatics for multidrug-resistant organisms, the firm said. 

"Combination of the two companies will expand our revenue and customer base and provide rapid testing capabilities to complement our MDRO gene tests," OpGen Chairman and CEO Evan Jones said in a statement. 

In 2014, AdvanDx recorded gross revenues of about $4.8 million. It has approximately 20 employees, and in addition to Woburn, it has a facility in Vedbaek, Denmark. 

As part of the deal, OpGen issued 681,818 shares of its common stock. OpGen's shares were up around 4 percent at $3.95 in Tuesday morning trade on the Nasdaq. 

Majority shareholders in privately held AdvanDx include SLS Ventures, Merck GHI, and LD Pensions. 

OpGen separately said that it closed on a $6 million financing with Merck GHI. Merck GHI will purchase 1,136,364 shares of OpGen's common stock at $4.40 per share for an aggregate purchase price of $5 million as part of the financing. It also will purchase a $1 million senior secured promissory note with 8 percent interest maturing in July 2017. 

In connection with the financing, David Rubin, managing director of Merck GHI, has been appointed to OpGen's board of directors, effective immediately.