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Dive Brief:
NeoGenomics has exercised its option to buy the remaining stake in Inivata for $390 million, positioning it to challenge for the liquid biopsy market. NeoGenomics expects the deal to close in the midlle of June.
The takeover will give NeoGenomics full ownership of InVisionFirst-Lung, a lung cancer panel that it already commercializes in the U.S., and the residual disease assay RaDaR.
William Blair analysts welcomed the deal, noting that NeoGenomics got a good price by setting the buyout fee when it invested $25 million in Inivata last year.
Dive Insight:
Inivata is a University of Cambridge spinout with two liquid biopsy assays. NeoGenomics secured the rights to commercialize non-small cell lung cancer assay InVisionFirst-Lung in the U.S. last year. That test accounts for most of the $5 million in sales NeoGenomics expects Inivata to generate this year.
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IMAGE: New SaferSeqS technology detects rare mutations in blood in a highly efficient manner and reduces the error rate. view more
Credit: Elizabeth Cooke
Next-generation gene sequencing (NGS) technologies in which millions of DNA molecules are simultaneously but individually analyzed theoretically provides researchers and clinicians the ability to noninvasively identify mutations in the blood stream. Identifying such mutations enables earlier diagnosis of cancer and can inform treatment decisions. Johns Hopkins Kimmel Cancer Center researchers developed a new technology to overcome the inefficiencies and high error rates common among next-generation sequencing techniques that have previously limited their clinical application.
To correct for these sequencing errors, the research team from the Ludwig Center and Lustgarten Laboratory at the Johns Hopkins Kimmel Cancer Center developed SaferSeqS (Safer Sequencing System), a major improvement to widely used tec