NEW YORK (GenomeWeb) – Health Diagnostics Laboratory today announced a deal with True Health Diagnostics to serve as the "stalking horse bidder" in the court-supervised sale of substantially all of HDL's assets.
True Health has agreed to buy HDL's assets for $32 million. As the stalking horse bidder, True Health's offer is the minimum bid for the transaction, and other potential buyers will be able to submit competing bids. The final price for HDL's assets will be determined at an auction scheduled for Sept. 10.
Founded in 2008 and based in Richmond, Virginia, HDL provided biomarker testing for cardiovascular disease and diabetes. It filed for Chapter 11 bankruptcy protection in June shortly after reaching an agreement with the US Department of Justice to settle an investigation into whether HDL's payments to doctors were essentially kickbacks to encourage them to order the firm's tests. HDL agreed to pay nearly $50 million as part of the settlement but denied wrongdoing.
"We are encouraged by the widespread interest shown by numerous possible bidders for the company and will continue to seek the highest value available — all with the goal of serving the best interests of our creditors and other stakeholders," HDL Executive Vice President and General Counsel Douglas Sbertoli said in a statement. "The operations of HDL will continue unimpeded while this process moves forward."
Privately held True Health is headquartered in Frisco, Texas. It is a diagnostics company focused on preventing chronic disease and provides clinical laboratory testing to help healthcare providers diagnose, manage, and prevent cardiovascular diseases, genetic disorders, diabetes, and other metabolic conditions.