Quest Diagnostics, a provider of diagnostic information services, has completed the sale of its Enterix colorectal cancer screening test business to Clinical Genomics Technologies, an Australian life sciences company.
In November 2012, Quest Diagnostics announced its five-point strategy to refocus on its core diagnostic information services business, simplify the organization and deliver disciplined capital deployment. Quest has sold its OralDNA dental diagnostics business, HemoCue diagnostic products business, Ibrutinib royalty rights and now Enterix, generating gross proceeds of approximately $800 million, providing flexibility to drive shareholder value.
Through the first half of 2013, the company repurchased $467 million shares and entered into an accelerated share repurchase agreement to repurchase approximately $350 million shares in September. In addition, the company invested in three acquisitions: the lab outreach businesses of UMass, Dignity Health and Concentra's toxicology business.
Based on a preliminary analysis, for the third quarter of 2013, the company expects to record a loss on the sale of the Enterix business of approximately $25 million, or $0.17 per share.
The acquisition provides Clinical Genomics with a GMP-licensed facility in New Jersey as well as access to a NATA-approved laboratory in Australia that it will use to launch its new blood test for colorectal cancer in early 2014. Along with the Australian lab, the deal includes the InSure FIT product line which will be combined with Clinical Genomics' blood test to deliver a portfolio of colorectal cancer screening products.