Novartis is buying specialist diagnostic service provider Genoptix in a cash-for-shares deal that values the acquired firm’s equity at about $470 million and the enterprise as a whole at $330 million. Novartis will pay $25 for each Genoptix share of common stock, representing a premium of 39% over Genoptix’ trading price in mid-December 2010, and a 27% premium over its closing price on January 21 this year. The acquired firm will be integrated into Novartis’ existing molecular diagnostics unit.
Genoptix is a specialized consulting laboratory service provider focused on delivering personalized services to community-based hematologists and oncologists, for the diagnosis of cancers and disorders of bone marrow, blood, and lymph nodes. Its board has unanimously approved the transaction and is recommending its shareholders tender their stock.
Novartis says once the buyout has been completed, it plans to maintain Genoptix’ existing operations and continue to provide its portfolio of personalized diagnostics services across the U.S. “The acquisition of the Genoptix medical laboratory will serve as a strong foundation for our individualized treatment programs,” notes Joseph Jimenez, Novartis CEO. “By integrating Genoptix within Novartis we can greatly enhance the value we add to patients, clinicians, and payers. The firm reported revenues of $148 million for the first nine months of 2010, and sales of $184 million over the whole of 2009.
In October 2010 Genoptix reported that it that it ranked number 41 on Technology Fast 500™ Deloitte's ranking of 500 of the fastest growing technology, media, telecommunications, life sciences, and clean technology companies in North America. Rankings were based on percentage of fiscal year revenue growth during the five-year period from 2005-2009, and suggested Genoptix grew 3,451% during that time frame.