Seriously jet lagged today (by the way, Society for Neuroscience meeting was seriously awesome as usual) or some other reason, but I see zero excitement on the investment side today. Therefore our daily deal is a trade sale.
The happy couple are Clarient and NeoGenomics (NASDAQ: NEO), bonded for life in exchange for $275M in cash and stock offering. In essence this means one of the largest cancer molecular diagnostics providers buying the (probably) best cancer pathology diagnostics practice from GE Healthcare. The sale is very highly valued (Clarient’s adjusted EBITDA is ~$13M) and stands at about 2.4 gross revenues.
GE Healthcare is going to own ~34% of NeoGenomics post-deal and the companies intend to collaborate on cancer bioinformatics.
This points in a rather interesting direction. The cancer profiling market alone stands at about $15B per annum and grows at a CAGR of ~18.5% (the whole onco-Dx market is about $100B and 7–8% CAGR). We can roughly break it up into five techs: NGS, qPCR, immunohistochemistry, FISH/CISH, and microarrays. The ChosenOneGenomics can do NGS as well as FISH and MAs they made most money on. Clarient is a provider of choice for immuno and image analysis. This looks to me like: a) integration of the market and an attempt at building a primo player (if not a monopolist) and b) a confirmation that people are recognizing the need to bring the tissue macro parameters and quantifiable biological images into the equation for bioinformatic cancer profiling. Methinks this is an important wake-up call for IA startups: start thinking data integration with NGS. Fun times ahead.
Question for bets: how long till we hear of a collaboration with Flatiron?
Deal reported by GEN News (http://bit.ly/1kIhQq1)