Cancer Genetics Inc., a Rutherford-based precision medicine in oncology company, announced Monday it has terminated its previously announced merger with NovellusDx Ltd., a functional genomics company, effective immediately.
Cancer Genetics said it will pursue alternative strategic and financial transactions to enhance shareholder value. It will again work with Raymond James & Associates Inc., a financial advisor, to assist in any future acquisitions, strategic partnerships or mergers.
John A. Roberts, CEO of Cancer Genetics, said the termination was in the best interest of the company and its shareholders.
“Based on difficulties we have had in advancing the merger process, as well as certain other factors, we believed it was in the best interests of Cancer Genetics and our shareholders to terminate the merger agreement with NovellusDx,” he said.
“Notwithstanding these challenges, we continue to make progress in our core business. Over the course of 2018, and in the third quarter in particular, we have continued to make substantive advancements toward streamlining our operations, creating more focus in our strategy and positioning the Company to grow revenues through the expansion of our biopharma business while maintaining strict control over our expenses. We have strengthened our management team, continue to improve our lab processes and formed strategic partnerships that are expected to contribute new streams of revenue to drive our long-term growth. We believe that we are on track to deliver solid operational performance in the fourth quarter of 2018 and remain confident in the strength of our core business, the continued dedication of our talented professional staff, and the strong relationships we have with our biopharma customers. We will continue to work with Raymond James to evaluate new potential strategic and financial alternatives aimed at enhancing shareholder value, are optimistic about our future and look forward to providing further updates on this process.”