PITTSBURGH--(BUSINESS WIRE)-- RedPath Integrated Pathology, Inc. ("RedPath"), a cancer molecular diagnostics company headquartered in Pittsburgh, PA, announced today that it has entered into a binding agreement to be acquired by ExonHit Therapeutics, S.A. ("ExonHit") (Alternext: ALEHT), a leading French diagnostics and therapeutics biotech company for an upfront payment of $12.5M in cash and $10M in stock, and starting in 2012, subsequent additional payment up to $9.5M dependent on the achievement of sales targets. As a result of the agreement RedPath will become part of ExonHit's US operations.
The acquisition of a revenue-generating diagnostics service provider, with a fully operational CLIA-licensed laboratory, allows ExonHit to establish an immediate diagnostic presence in the US. The transaction, anticipated to close before mid-July 2010, is subject to approval by ExonHit's shareholders at an upcoming Extraordinary Shareholder Meeting to be convened.
“This acquisition is a significant milestone in ExonHit’s strategy to become an internationally recognized player in molecular diagnostics. This transaction will strengthen our presence in the USA which represents 55% of the molecular diagnostics market,” said Loïc Maurel, M.D., President of the Management Board at ExonHit. “RedPath provides a strong strategic and business fit with ExonHit. We are looking forward to working with the talented RedPath team and believe that this strategic move will give ExonHit a new dimension, with an innovative offering in oncology, the fastest-growing segment in molecular diagnostics.”
RedPath’s unique DNA-based technology platform, PathFinderTG®, is a powerful diagnostic tool that can improve the way physicians diagnose, manage and treat patients when traditional testing methods result in “indeterminate” or “indefinite” results. RedPath has successfully developed, launched, and earned reimbursement for the PathFinderTG molecular diagnostic assay for pancreatic cancer. A second diagnostic assay to differentiate new primary cancer from metastatic tumors is being launched. The company’s other service lines include two programs in late-stage development and several earlier stage development programs in oncology.
“We are very pleased to enter into this agreement as it will benefit patients, clinicians and the employees of RedPath. Combining ExonHit’s and RedPath’s respective technologies, know-how and resources will help maximize the potential of both PathFinderTG and ExonHit’s RNA-based AclarusDx™ platforms,” stated Mark D. Myslinski, President and CEO of RedPath. “The transaction is good news for the entire RedPath team who will remain highly involved in the development and commercialization of the PathFinderTG line and constitute a key asset for the commercial success of AclarusDx™ in the US. The influx of capital will enable RedPath to expand its Pittsburgh facilities, hire additional personnel and take advantage of future growth opportunities. Additionally, the company is eager to bring our diagnostic solutions to EU patients and clinicians who will benefit from the clinical utility of our assays.” ExonHit’s global diagnostics division will be led by Mr. Myslinski, who will join the ExonHit Management Board upon closing of the transaction.
About RedPath Integrated Pathology, Inc.
RedPath Integrated Pathology, Inc. is a US cancer molecular diagnostics company that provides comprehensive molecular analysis to resolve challenging diagnostic dilemmas. The company's CLIA-licensed, CAP-certified laboratory delivers actionable diagnostic information that enables physicians to make personalized, effective treatment decisions for their patients. RedPath is headquartered in Pittsburgh, Pennsylvania. For more information, please visit http://www.redpathip.com
About ExonHit Therapeutics
ExonHit Therapeutics (Alternext: ALEHT) is a fast-emerging healthcare player active in both therapeutics and diagnostics. The company is applying its proprietary technology, based on the analysis of alternative RNA splicing, to develop innovative molecular diagnostic tests and therapeutics for neurodegenerative and cancer indications. ExonHit has a balanced investment strategy with in-house development programs and strategic collaborations, in particular with bioMérieux and Allergan. ExonHit is headquartered in Paris, France and has U.S. offices in Gaithersburg, Maryland. The company is listed on Alternext of NYSE Euronext Paris. For more information, please visit http://www.exonhit.com.
KEYWORDS: United States North America Pennsylvania
INDUSTRY KEYWORDS: Health Biotechnology Hospitals Oncology Research Science General Health