Myriad Genetics ($MYGN) is jumping into the neuroscience market with a $225 million acquisition of Assurex Health, which does genetic testing for psychotropic medicine selection. Assurex has the potential to pick up an additional $185 million if it meets certain performance-based milestones.
The Assurex buy will add the Mason, OH-based company’s GeneSight genetic test to Myriad’s stable. The test uses a patient's DNA collected via cheek swab and provides information to help healthcare providers select medications in a personalized approach. The addition will allow Myriad to join the neuroscience market, in which the U.S. spends more than $150 million in direct healthcare costs.
The buy will give Myriad access to the more than 76 million people in the U.S. who have some form of mental disorder and also serves as a launchpad for the company’s in-development neuroscience offerings, including myPath Bipolar, a differential diagnosis tool for bipolar disorder and major depressive disorder.
"Assurex provides Myriad access to GeneSight one of the fastest growing new diagnostic tests ever in a multi-billion dollar global market and builds upon Myriad's commitment to expand into neuroscience, positioning us for long-term growth," said Myriad CEO Mark Capone in a statement. "Importantly, this acquisition provides an experienced commercial organization in the neuroscience market that we believe will be one of the highest growth areas for personalized medicine and completes our infrastructure expansion consistent with our four-in-six strategy."
Myriad expects to close the transaction by the end of Q1 2017 and will discuss the deal’s effects on its financials on its Q4 earnings call next week. It follows Myriad’s acquisition of Sividon Diagnostics, a Siemens spinout that markets the prognostic EndoPredict breast cancer test.
- read the statement
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