Cancer Genetics Inc., a Rutherford-based precision medicine in oncology company, and NovellusDx Ltd., a functional genomics company, jointly announced a merger agreement under which NovellusDx will merge with a newly-formed Israeli subsidiary of Cancer Genetics.
Under terms of the merger, shareholders of NovellusDx will receive stock equal to about 49 percent of the equity of Cancer Genetics on a fully diluted basis. Cancer Genetics will be the surviving company and remain listed on the NASDAQ.
The transaction will combine Cancer Genetics’ scale, test portfolio and data set related to tumor biology with NovellusDx’s technology and machine learning capabilities to form an oncology-focused precision medicine company.
“This is truly an exciting day for CGI and its shareholders. We believe that the combination of Cancer Genetics and NovellusDx will result in an organization that is uniquely positioned within the oncology ecosystem. The combined company has an opportunity to become an essential partner for biopharma companies to support their efforts to develop better, more targeted therapeutics and improve patient outcomes in cancer treatment. Over the last several months, we have made significant progress in positioning Cancer Genetics as a value-added partner with biopharma companies. We are confident that this transaction significantly strengthens our value proposition for both existing and potential biopharma partners. We look forward to planning, with the NovellusDx team, the integration of our respective strategic plans to bring innovative product and service offerings as we advance toward closing,” John A. Roberts, CEO of Cancer Genetics, said.
Roberts will become the new CEO of the combined company. Dr. Charles Woler, the current chairman of the board of NovellusDx, will become chairman of the board of the combined company.
The merger is expected to close in the first quarter of 2019.
“We are pleased to enter into this merger agreement with Cancer Genetics and excited by what the future holds for the combined company and our shareholders. This merger will result in a company offering advanced science and cutting-edge technology to empower oncologists and the biopharma industry to make optimal treatment decisions and develop new therapies to benefit patients in need. We believe that the combined company will have a level of capability and expertise unmatched in the oncology arena and will be well-positioned to compete, particularly in the fast-growing immuno-oncology segment,” Haim Gil-Ad, co-founder and CEP of NovellusDx, said.
Raymond James is serving as the exclusive financial advisor to Cancer Genetics. Chardan is serving as the exclusive financial advisor to NovellusDx.