trending Market Intelligence /marketintelligence/en/news-insights/trending/S-BbSPLhNxqmOX2ZcjCDGg2 content esgSubNav
In This List

OncoCyte acquires 25% stake in Razor Genomics, rights to lung cancer test

Blog

A Pharmaceutical Company Capitalizes on M&A Activity with Brokerage Research

Blog

2021 Year in Review: Highlighting Key Investment Banking Trends

Blog

Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings

Blog

Global M&A By the Numbers: Q3 2021


OncoCyte acquires 25% stake in Razor Genomics, rights to lung cancer test

OncoCyte Corp. completed the acquisition of a 25% stake in Razor Genomics Inc. in the form of its preferred stock for $10 million in cash.

Alameda, Calif.-based OncoCyte holds an option to acquire the remaining outstanding shares of Razor. The company should exercise the option if a certain clinical milestone is achieved, after which Razor shareholders will receive $10 million in cash and $5 million of OncoCyte common stock for their Razor shares.

Additionally, OncoCyte acquired rights to commercialize Razor's lung cancer treatment stratification test, which allows early-stage screening of cancer patients at high risk of recurrence.

Razor plans to use $4 million of the initial $10 million payment from Oncocyte to fund a supplemental clinical trial of the Razor test.

OncoCyte also made a $1 million milestone payment to Razor's parent company, Encore Clinical Inc., following the decision by the Centers for Medicare and Medicaid Services to cover the Razor test. Razor's parent company would receive a $4 million cash payment from OncoCyte upon the achievement of an additional CMS coverage milestone.

Meanwhile, Razor's shareholders could receive up to $3 million of OncoCyte's common stock upon the achievement of a separate clinical trial milestone.