French cancer diagnostics company ExonHit Therapeutics has backed out of a deal to acquire Pittsburgh-based RedPath Integrated Pathology. The deal, which was first announced in April, was worth $22.5 million in cash and stock plus $9.5 million in sales milestones.
With the RedPath buy, ExonHit had hoped to expand its molecular diagnostics business into a global company. But those plans were scuttled in June when Medicare contractor Highmark announced it would limit coverage of RedPath PathFinderTG family of tests. Comments from clinical users convinced Highmark to continue coverage of the test in September, but only for pancreatic cancer. The two companies were unable to agree on revised financial terms and conditions, ExonHit explains in a statement. The company says it is still committed to acquire a revenue-generating molecular diagnostic company to fuel international growth.
- check out this ExonHit release for more