Cancer Genetics completes acquisition of BioServe India
Cancer Genetics (CGI), a Rutherford, N.J.-based, DNA-based cancer diagnostics provider, has completed the acquisition of BioServe Biotechnologies, a premier genomics services provider serving the research and clinical markets in India.
Venkatadri Bobba, general partner of Ventureast, a venture capital fund in India and a board member at BioServe India, said, "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 one million new cases of cancer are diagnosed in India each year, and incidence rates are expected to rise by more than 72% by 2025. Additionally, according to Frost and Sullivan, healthcare spending is expected to increase at an average annual rate of 17%, reaching $160 billion by 2017.
Panna Sharma, CGI's CEO, 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% 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 also will 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. BioServe India will be a wholly owned subsidiary of CGI that will be renamed Cancer Genetics India. CGI plans to retain 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.