Cancer Genetics Inc (CGIX)

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Cancer Genetics’ Acquisition Energizes Diagnostics in India

Posted: Wednesday, September 3, 2014 11:30 am
Richard Springer, India West

For Panna Sharma, CEO of Rutherford, N.J.-based Cancer Genetics, Inc. (Nasdaq; CGIX), a DNA-based cancer diagnostics firm, the Aug. 18 closing of its $1.9 million acquisition of Hyderabad-based BioServe Biotechnologies (India) Pvt. Ltd., a provider of genomics services to research and clinical sectors in India, is much greater than the company’s first acquisition since it became a public company.
“For us,” the Indian American CEO told India-West by phone from New Jersey, “India is a very high growth market for diagnosing cancer.” “This is a very synergistic deal.”
More than one million new cases of cancer are diagnosed in India each year and incidence rates are expected to climb by more than 72% by 2025, he pointed out.
BioServe India operates from a 14,000-sq.-ft. genomics facility in Hyderabad. The company has over 200 clients for its gene sequencing, genotyping and DNA synthesis services, including Dr. Reddy’s Laboratories, Piramal Life Sciences, NATCO Pharma and the Indian Institute of Science Education and Research.
Panna foresees adoption of CGI’s tests for non-Hodgkins lymphomas and leukemias, kidney cancer and cervical cancer.
In particular, the deal allows the company to ramp up cervical cancer screening and treatment in India, where 123,000 new cases are diagnosed annually.
“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 in a statement.
Venkatadri Bobba, general partner of Indian venture capital fund Ventureast and a BioServe India board member, added, “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.”
While cervical cancer is a breakthrough technology for Cancer Genetics, “we are actually a multiple disease-category company,” Sharma emphasized to India-West.
The expansion into India will also allow CGI to strengthen its capabilities in molecular testing, DNA synthesis, biomarker analysis and next-generation sequencing, he added.
The purchase price of about $1.9 million includes $1.75 million in CGI common stock and $250,000 in cash, along with the assumption of debt.
BioServe India will become a subsidiary of CGI and be renamed Cancer Genetics India. All of BioServe’s 33 employees in India are being retained.
“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 in the statement.
The Indian American executive became a board member and CEO of Cancer Genetics in May 2010. He formerly was managing partner and founder of TSG Partners, a specialty life sciences consultancy and advisory company; chief strategy officer for public e-business consultancy iXL Enterprises; and a partner at marketing and strategy consulting firm Interactive Solutions. Sharma attended Boston University from 1987-1992 in the University Professor's Program.
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http://www.indiawest.com/news/business/cancer-genetics-acquisition-energizes-diagnostics-in-india/article_cedcdfc0-3390-11e4-8a62-001a4bcf887a.html

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