PDI acquired all of the outstanding shares of RedPath Integrated Pathology, expanding the oncology diagnostic product portfolio for its subsidiary Interpace Diagnostics.
The deal includes a $12 million upfront payment, future milestone-based payments, future revenue-based payments, an $11 million noninterest-bearing four-year subordinated note to the shareholders of RedPath, and up to one million PDI shares issuable upon the successful introduction of a Barrett's esophagus test. In connection with the acquisition of RedPath, PDI secured a $20 million, six-year term loan from SWK Holdings.
As part of the transaction, PDI obtains all RedPath Integrated Pathology assets including the PathfinderTG® platform, which the company said uses clinical algorithms to stratify patients according to risk of cancer by assessing panels of DNA abnormalities in patients who have lesions (cysts or solid masses) with potential for cancer. Also included in the deal are the PathfinderTG Pancreas, a diagnostic test reimbursed by Medicare to determine risk of cancer in pancreatic lesions, and any additional PathfinderTG applications in late-stage development with ongoing clinical studies.
“The PathFinderTG testing platform has tremendous untapped potential to deliver a much-needed improvement in diagnostic options for oncologists, gastroenterologists, pathologists, and patients—particularly in pancreatic cancer and other gastrointestinal-related cancers,” said Nancy Lurker, CEO, PDI. “This acquisition further demonstrates PDI's commitment to building a growth-oriented portfolio of proprietary molecular diagnostics that serves unmet medical needs in the oncology space.”
This is the second oncology-related molecular diagnostic acquisition for Interpace Diagnostics this year. In August, PDI acquired the miRInform® Thyroid and Pancreas cancer test assets from Asuragen.