NeoGenomics to acquire Inivata for $390M after success of lung cancer liquid biopsy collab

These days, nearly everything comes with a trial period: Netflix subscriptions, new car purchases and, apparently, even medtech acquisitions. Nearly a year after forging a commercial partnership with Inivata, NeoGenomics has opted to cash in on an option in the original deal to acquire the liquid biopsy developer.

NeoGenomics will pay $390 million to buy out Inivata, with about $200 million coming from a private placement led by existing Inivata shareholders and NeoGenomics investors, as well as several other oncology-focused investors.

The deal is expected to close in June, at which time Inivata’s business will become a separate liquid biopsy division underneath the NeoGenomics umbrella, joining the genetic testing services provider’s clinical, pharmaceutical and informatics divisions. Inivata CEO Clive Morris will become president of the division, reporting directly to NeoGenomics CEO Mark Mallon.

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“Combining Inivata’s compelling technology with our reach into the clinical oncology channel and our ability to build on our existing relationships with biopharma is a winning strategy," NeoGenomics Executive Chairman Douglas VanOort said in a release.

The Florida-based company will also direct its existing biopharma-focused sales team and a future group of genomic sequencing-focused salespeople to expand the global adoption of Inivata’s liquid biopsy assays for detecting residual disease and guiding treatment of advanced non-small-cell lung cancer.

“By leveraging our combined resources, we expect to accelerate the development of our promising RaDaR minimal residual disease assay and accelerate commercialization efforts with biopharma before driving a successful launch into the clinical setting,” said Inivata's Morris. “Our two organizations are culturally aligned and highly complementary in capabilities, and we are excited to combine with NeoGenomics.”

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The original mid-2020 partnership saw NeoGenomics invest $25 million into Inivata to become a minority owner of the U.K.-based genetic test maker, with an option to buy the entire company by the end of 2021.

Through that partnership, NeoGenomics began helping Inivata commercialize its lung cancer blood test in the U.S. The InVisionFirst-Lung tests 37 genes to provide insights into personalized treatments for advanced non-small-cell lung cancer patients.