Oncocyte Corp. closed its acquisition of Nashville, Tenn.-based private molecular diagnostics company Insight Genetics Inc. in a cash and stock deal.
At closing, Oncocyte paid $6.4 million in cash in addition to 1.9 million of its common shares valued at $5 million.
Under the previously disclosed terms of the deal, Oncocyte will pay a share of up to 10% of net revenues collected for current Insight Genetics pharma service offerings for 10 years and a tiered revenue share percentage of net collected revenues through the end of the lifecycle if certain new cancer tests are developed using Insight Genetics technology.
Irvine, Calif.-based Oncocyte, which develops and markets noninvasive blood-based diagnostic tests for the early detection of cancer, also agreed to pay up to $6 million in milestone payments in any combination of its stock and cash.
"The Insight Genetics' IM Score test was an ideal addition to the Oncocyte portfolio, and while our current focus is on lung cancer, this acquisition significantly expands our suite of proprietary tests to manage key decision points potentially across multiple stages and types of cancers," Oncocyte CEO Ron Andrews said in a Feb. 5 statement.
Andrews said the deal "is an important step in the evolution of Oncocyte" as it not only expands the company's impact to a broader patient population but also provides it access to a lab with the certifications required to submit data to regulatory agencies around the world.
Insight Genetics specializes in the discovery, development and commercialization of molecular diagnostics that detect specific cancer biomarkers in triple-negative breast cancer and lung cancer to guide effective diagnosis, treatment and monitoring of cancer.