American Genomics Company Enters the Indian Cancer Diagnostics Sector

(Rutherford, NJ, USA), has announced the purchase of BioServe Biotechnologies (India) Pvt. Ltd. (Hyderabad, India) for approximately 1.9 million USD.

BioServe India's status as a state-of-the-art genomics services provider serving both the research and clinical markets is expected to allow it to be a major contributor to Cancer Genetics' push to become a world leader in the field of DNA-based cancer diagnostics.

Under terms of the purchase agreement Cancer Genetics will retain all 33 current employees of BioServe India, and intends to further expand and strengthen its sales and clinical teams. BioServe India will be headquartered in a state-of-the-art 1,300-square-meter genomics facility in Hyderabad, but will become a subsidiary of Cancer Genetics, and will be renamed Cancer Genetics India Pvt. Ltd.

The new company has the infrastructure and scientific expertise required to incorporate Cancer Genetics' DNA probe manufacturing and proprietary FHACT (FISH-based HPV-Associated Cancer Test) test into the Indian market, which represents more than 25% of the global deaths attributed to cervical cancer. FHACT is a noninvasive genomic test that augments the classical Pap smear by identifying cancer and precancerous lesions caused by persistent HPV infection.

"With Bioserve, Cancer Genetics will become better positioned to increase our global presence in personalized cancer care and further improve outcomes and lower costs for cancer patients," said Panna Sharma, CEO of Cancer Genetics, Inc. "The BioServe India team adds immediate positive impact, high-quality revenue, and provides a clear path to an accretive deal for shareholders. The infrastructure and enhanced capacities in next generation sequencing for oncology accelerate our development plans while positioning us to make more effective use of our capital. Another important driver for the transaction with BioServe India was the world-class management and R&D team that is currently in place, as well as a company culture that fits in well with Cancer Genetics. We believe that this type of deal can serve as a blueprint for future acquisitions and accelerate the delivery of shareholder value."

Related Links:
Cancer Genetics, Inc.
BioServe Biotechnologies (India) Pvt. Ltd.