USA – Sema4 has announced an agreement to acquire OPKO Health’s genomic testing and analysis subsidiary GeneDx, creating “one of the largest” providers of genomic clinical testing in the United States.
The transaction, worth approximately US$623 million, has been approved by the boards of both companies and is expected to close in the second quarter.
GeneDx offers advanced genomic testing to patients and their families, as well as a clinical genomics program with expertise in exome sequencing for pediatric genetic disorders that are rare or ultra-rare.
Sema4 expects to strengthen its artificial intelligence (AI)-driven genomic and clinical data intelligence platform as a result of this transaction.
The deal includes a US$150 million down payment, 80 million Sema4 shares, and an additional US$150 million based on revenue milestones met over the next two years.
The combined company is expected to become one of the largest and most advanced genomic clinical testing providers in the US, with an estimated US$350 million in pro forma revenue this year.
GeneDx’s rare disease diagnostic and exome sequencing services, according to the company, will add more than 2.1 million expertly annotated phenotypes and more than 300,000 clinical exomes to its 12 million de-identified clinical records for the Traversa and Centrellis platforms.
Sema4’s Traversa genomic analysis platform is used to optimize health screenings, and Centrellis is its health intelligence platform.
Sema4 intends to use the combined health information database to revolutionize patient care and therapeutic development.
Eric Schadt, PhD, Founder and CEO of Sema4 stated that “genomics and data, when harnessed in partnership with health systems, can be a powerful tool to enable precision medicine by bringing novel therapies to patients faster and more effectively. We hope that this investment may serve as a foundation for potential future collaborations.”
The transaction is expected to close in the second quarter of this year, subject to Sema4 stockholder approval and other closing conditions.
In addition, Katherine Stueland, CEO of GeneDx, will join Schadt as co-CEO of Sema4. She will oversee R&D and the IT platform components, strategic development of health intelligence capabilities, and partnerships with health systems and biopharma companies.
Schadt will oversee R&D and the IT platform components, strategic development of health intelligence capabilities, and partnerships with health systems and biopharma companies.
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