BURLINGTON – Global life science giant Labcorp says it will acquire an emerging cancer genomics company in a deal worth $450 million now with the possibility of another $125 million going to its shareholders if benchmarks are met.
Early Thursday before the markets opened, Labcorp, which is based in Burlington and has a growing presence in Research Triangle Park, announced the deal for Personal Genome Diagnostics. Based in Baltimore, the 11-year-old company is expected to produce $22 million in revenue this year and $40 million in 2022, Labcorp noted.
Known as PGDx, the firm offers a variety of liquid biopsy and other products.
The deal is designed to boost Labcorp’s oncology product porfolio, the company noted. Labcorp earlier this month disclosed a new strategic plan that the company told WRAL TechWire “reinforces our ability for strong, profitable growth and shareholder returns as we continue to invest in science and innovation that improves health and lives.”
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“Labcorp’s leadership and scale in diagnostic testing and drug development, coupled with PGDx’s innovative technology and suite of capabilities, will accelerate access to personalized treatments for cancer patients globally,” said Adam Schechter, chairman and CEO of Labcorp, in the announcement.
“PGDx’s comprehensive portfolio of next-generation sequencing products will meaningfully add to our breadth of capabilities, in line with our strategic priority to lead in oncology. PGDx’s technology is well positioned in an important segment with strong growth prospects. We look forward to welcoming PGDx’s talented team and working together to bring world-class diagnostics, technology and treatments within reach for all,” he added.
Labcorp notes that the PGDx technology “accelerates” its “existing liquid biopsy capabilities and expands Labcorp’s leading oncology portfolio of next-generation sequencing (NGS)-based genomic profiling capabilities, positioning Labcorp at the forefront of driving better patient outcomes in oncology.”
“We share Labcorp’s vision of improving health care decisions and outcomes through science, data and a continued commitment to innovation,” said Megan Bailey, CEO of PGDx, in a statement. “For over a decade, PGDx has made great progress toward that goal. As a part of the Labcorp family, we have an incredible opportunity to broaden and accelerate our impact on cancer care through Labcorp’s global reach.”
