RARE Daily

Invitae Merges with ArcherDX in $1.4 Billion Deal to Advance Cancer Genetics and Precision Oncology

June 22, 2020

Rare Daily Staff

Genetics testing company Invitae said it is merging with precision oncology genomics analysis company ArcherDx to create a genetics leader with unrivaled breadth and scale in cancer genetics and precision oncology in a deal worth $1.4 billion.

Broad adoption of precision oncology has been limited, particularly in regional and community settings where approximately 85 percent of patients receive care. Without precision oncology, late-stage cancer patients can suffer from poor prognosis and outcomes, while early-stage patients may receive an inaccurate prognosis that results in unnecessary treatment and delayed detection of recurrence.

The combined company will be in a position to transform care for cancer patients, accelerating adoption of genetics through the most comprehensive suite of products and services available. Integrating germline testing, tumor profiling, and liquid biopsy technologies and services in a single platform will enable precision approaches from diagnostic testing to therapy optimization and monitoring, expanding access to best-in-class personalized oncology.

“From the beginning, Invitae’s goal has been to aggregate the world’s genetic tests into a single platform in service of our mission to bring comprehensive genetic information into mainstream medicine,” said Sean George, co-founder and CEO of Invitae. “Today, we take another major step forward in that effort.”

Under the terms of their agreement, Invitae will acquire ArcherDX for upfront consideration consisting of 30 million shares of Invitae common stock and $325 million in cash, plus up to an additional 27 million shares of Invitae common stock payable in connection with the achievement of certain milestones, for an overall transaction valued at approximately $1.4 billion. The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close in several months.

In connection with the proposed combination, Invitae has arranged a strategic financing with more than $400 million in financing commitments from a syndicate of life sciences investors, led by Perceptive Advisors. The financing includes $275 million in a private placement and $200 million in a credit facility.

Invitae has long been a leader in diagnostic and hereditary risk testing for rare diseases, and has strong relationships with clinicians caring for cancer patients, including cancer genetic counselors, oncologists and imaging centers.

ArcherDX has developed and commercialized more than 325 unique products, including research products and services in use by more than 300 laboratories worldwide and has collaborated with more than 50 biopharmaceutical companies and contract research organizations. It is also developing products and services to optimize therapy and enable cancer monitoring across liquid and tissue samples, including Stratafide DX for therapy optimization, and Personalized Cancer Monitoring, a system in development for disease recurrence monitoring, therapy optimization including selection, response and modulation. Both have received Breakthrough Device designation from the U.S. Food and Drug Administration.

“ArcherDX and Invitae share a foundational belief in the power of genomic information to impact care,” said Jason Myers, CEO and co-founder of ArcherDX. “ArcherDX products, workflow and powerful bioinformatics solutions provide an opportunity to advance precision oncology into regional and community settings and address an estimated $45 billion market opportunity. Together with Invitae, we look forward to expanding our impact beyond oncology, driving significant value through shared expertise to inform healthcare throughout life, globally.”

Photo: Sean George, co-founder and CEO of Invitae


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