OncoCyte Corp. agreed to acquire private molecular diagnostics company Insight Genetics Inc. for about $12 million in a cash and stock deal.
OncoCyte will pay $7 million in cash and common shares worth $5 million to the Nashville, Tenn.-based private company that 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.
Under the agreement, Alameda, Calif.-based OncoCyte will also 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.
Additionally, OncoCyte has agreed to pay up to $6 million in any combination of cash or OncoCyte shares, subject to certain milestones.
Completion of the deal is subject to closing conditions including approval from Insight Genetics' shareholders.