Oracle Healthcare Acquisition plans to take over Precision Therapeutics (PTI) in a stock-for-stock agreement. PTI will merge with a Oracle subsidiary, which will then be renamed Precision Therapeutics.
PTI develops and commercializes tests to assist physicians in individualizing cancer therapy. The company markets ChemoFx®, a cell-based test that examines the likelihood of patients’ tumor response to various chemotherapies. The company has ongoing clinical trials involving tests related to breast and ovarian cancers.
“We are very excited about this merger as it would provide the financial resources to capitalize on the progress we have made in commercializing our ChemoFx test,” states Sean McDonald, president and CEO of PTI. “The capital available to us upon the closing of the transaction would support an increased sales and marketing effort, which should allow us to continue the rapid revenue growth that we have been experiencing.”
Oracle expects to have its shares trade on NASDAQ. The company anticipates having approximately $120 million in cash at the closing, before payment of expenses of the merger and cash paid to any PTI and Oracle stockholders.