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Novartis is looking to advance its personalized medicine treatment programs by entering into a definitive agreement to acquire Genoptix, a laboratory offering personalized diagnostic services, for approximately $470 million or $25 per share.
Novartis is looking to advance its personalized medicine treatment programs by entering into a definitive agreement to acquire Genoptix, a laboratory offering personalized diagnostic services, for approximately $470 million or $25 per share. According to Novartis, the acquisition will support the development of companion diagnostic programs, particularly in oncology, and advance the company’s ability to define and monitor personalized treatment programs.
Genoptix, based in California (USA), employs approximately 500 people and will become part of Novartis Molecular Diagnostics, a unit within the Novartis Pharmaceuticals Division. According to a press statement, the Novartis tender offer represents a premium of approximately 27% over Genoptix’s January 21 share price.
"The acquisition of the Genoptix medical laboratory will serve as a strong foundation for our individualized treatment programs," Joseph Jimenez, CEO of Novartis, said in the statement. “By integrating Genoptix within Novartis, we can greatly enhance the value we add to patients, clinicians, payers and society."
The Genoptix Board of Directors has unanimously approved the transaction and recommended that stockholders tender their shares and adopt the merger agreement. In a Genoptix statement, CEO Tina S. Nova said: "We believe this transaction provides substantial value and liquidity to our stockholders. We are excited about becoming part of the Novartis Molecular Diagnostics unit and continuing to enhance the value that we bring to our core community oncologist customers.”
The transaction is conditional upon the tender of at least a majority of the shares of Genoptix in the tender offer, receipt of regulatory approvals and other customary closing conditions. The transaction is expected to close within the first half of 2011.