Novartis to Purchase Genoptix for US$470 Million

Novartis (Basel, Switzerland), a multinational pharmaceutical industry concern, has signed a definitive agreement to acquire the personalized diagnostics lab services firm Genoptix (Carlsbad, CA, USA) for approximately US$470 million, through an all cash tender offer.

Genoptix is a specialized laboratory providing personalized diagnostic services to community-based hematologists and oncologists. The company is a publicly traded, profitable laboratory that specializes in diagnosing cancers in bone marrow, blood, and lymph nodes. It also specializes in solid tumor workups using molecular testing. Genoptix will become part of the Novartis Molecular Diagnostics (MDx), a unit within the Novartis Pharmaceuticals Division. The acquisition will support and expedite the development of companion diagnostic programs, especially in oncology.

The acquisition complements the Novartis internal capabilities aimed at improving health outcomes by advancing individualized treatment programs.

Genoptix uses a variety of technologies, including flow cytometry, cytogenetics, FISH, and molecular tests to provide personalized diagnostic results. Through its flagship Compass service, Genoptix correlates DNA sequencing results with these technologies to arrive at a patient-specific diagnosis.

Novartis, focused solely on healthcare, offers a diversified portfolio that includes innovative medicines, cost-saving generic pharmaceuticals, preventive vaccines, diagnostic tools, and consumer health products. The deal with Genoptix signals further consolidation in the world biopharma industry.

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