Cancer Genetics Inc.
Completes Acquisition of BioServe India, a Premier Genomics and Next-Generation
Sequencing Company
Cancer Genetics Now
Positioned to Participate in High-Growth Indian Diagnostics Market, Where More
Than 1 Million New Cancer Cases Are Diagnosed Each Year
Cancer Genetics Derives
Immediate Revenue Through BioServe India's Clients, Which Include Dr. Reddy's
Laboratories, Piramal Life Sciences, NATCO Pharma, the Indian Institute of
Science Education and Research, and the Center for Cellular and Molecular
Biology
Cancer Genetics Will
Develop BioServe India's 14,000-Square-Foot Accredited Laboratory into a Center
of Excellence for Biomarker Analysis, Next-Generation Sequencing and Oncology
Diagnostics
RUTHERFORD, N.J. and
HYDERABAD, India, Aug. 18, 2014 (GLOBE NEWSWIRE) -- Cancer Genetics, Inc.
(Nasdaq:CGIX) ("CGI" or "The Company"), an emerging leader
in DNA-based cancer diagnostics, today closed the announced acquisition of
BioServe Biotechnologies (India) Pvt. Ltd., a premier genomics services
provider serving both the research and clinical markets in India.
BioServe India, which
operates out of a 14,000-square-foot, state-of-the-art genomics facility in
Hyderabad, has serviced over 200 clients with best-in-class genomic services,
including next-generation sequencing, genotyping and DNA synthesis. CGI will
benefit from immediate revenue through BioServe India's long-term contracts
with academic and research institutions and its capabilities in genetic
research, test development and genomic analysis.
BioServe India's clients
include some of the leaders in the Indian life sciences industry, including Dr.
Reddy's Laboratories, NATCO Pharmaceuticals, Piramal Life Sciences, the Indian
Institute of Science Education and Research and the Centre for Cellular and
Molecular Biology.
"We are excited to be
joining Cancer Genetics," said Venkatadri Bobba, general partner of
Ventureast, India's premier venture capital fund and a board member at BioServe
India. "This merger will allow us to improve patient care in India by
delivering cutting-edge, patented cancer diagnostic technologies and allow us
to offer an even broader range of state-of-the-art services to biopharma customers,
hospitals and academic research institutions."
India is recognized as a
high-growth market for molecular diagnostics and oncology services. More than 1
million new cases of cancer are diagnosed in India each year, and incidence
rates are expected to rise by more than 72 percent by 2025. Additionally,
according to Frost and Sullivan, healthcare spending is expected to increase at
an average annual rate of 17 percent, reaching $160 billion by 2017.
CGI's CEO, Panna Sharma,
said the acquisition places the company in a unique position to meet the
growing need for genomic-based cancer diagnostics in this market. He
anticipates wide adoption of CGI's proprietary tests for non-Hodgkins lymphomas
and leukemias, kidney cancer and cervical cancer. "In particular, the acquisition
positions CGI to revolutionize cervical cancer screening and treatment in
India, where 123,000 new cases are diagnosed annually," he said.
"We now have a
growing pipeline of potential clients and collaborators for our non-invasive
cervical cancer test in India, where cervical cancer is the leading cause of
cancer death in women, accounting for 25 percent of global cervical cancer
deaths," Sharma said. "FHACT® will provide physicians in India with
critical genomic information to provide improved screening for cervical cancer
in both urban and rural settings."
"The expansion into
India will also allow CGI to leverage its resources and scale its operations,
while strengthening its capabilities in molecular testing, DNA synthesis,
biomarker analysis and next-generation sequencing," Sharma said. He
described the Hyderabad laboratory as an important resource that will allow CGI
to access high-growth markets for oncology diagnostics and reduce costs
associated with product manufacturing, test development and genomic data
analysis.
CGI acquired BioServe
India for approximately $1.9 million, largely in CGIX stock and other deferred
consideration. Under the terms of the agreement, BioServe India will be a
wholly owned subsidiary of CGI that will be renamed Cancer Genetics India. CGI
plans on retaining BioServe India's 33 employees, and expanding and
strengthening the team.
"This acquisition is
an important milestone for CGI, as we now have the clinical diagnostics
infrastructure and resources to deliver critical genomic oncology services at a
time when India has placed a high priority on expanding its healthcare
capabilities," Sharma said.
About
Cancer Genetics
Cancer Genetics, Inc. is
an emerging leader in DNA-based cancer diagnostics, servicing some of the most
prestigious medical institutions in the world. Our tests target cancers that
are difficult to diagnose and predict treatment outcomes. These cancers include
hematological, urogenital and HPV-associated cancers. We also offer a
comprehensive range of non-proprietary oncology-focused tests and laboratory
services that provide critical genomic information to healthcare professionals,
as well as biopharma and biotech companies. Our state-of-the-art reference lab
is focused entirely on maintaining clinical excellence and is both CLIA
certified and CAP accredited and has licensure from several states including
New York State. We have established strong research collaborations with major
cancer centers such as Memorial Sloan-Kettering, The Cleveland Clinic, Mayo
Clinic and the National Cancer Institute. For further information, please see
www.cancergenetics.com.
Forward-Looking
Statements:
This press release
contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements pertaining to future
financial and/or operating results, future growth in research, technology,
clinical development and potential opportunities for Cancer Genetics, Inc.
products and services, along with other statements about the future
expectations, beliefs, goals, plans, or prospects expressed by management
constitute forward-looking statements. Any statements that are not historical
fact (including, but not limited to, statements that contain words such as
"will," "believes," "plans,"
"anticipates," "expects," "estimates") should
also be considered to be forward-looking statements. Forward-looking statements
involve risks and uncertainties, including, without limitation, risks inherent
in the development and/or commercialization of potential products, uncertainty
in the results of clinical trials or regulatory approvals, need and ability to
obtain future capital, maintenance of intellectual property rights and other
risks discussed in the Company's Form 10-K for the year ended December 31 2013
and Form 10-Q for the quarter ended June 30, 2014 and other filings with the
Securities and Exchange Commission. These forward-looking statements speak only
as of the date hereof. Cancer Genetics disclaims any obligation to update these
forward-looking statements.
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