Rosetta Genomics Ltd. has agreed to acquire CynoGen, Inc. (d/b/a PersonalizeDx) from Prelude Corporation, a Fjord Ventures portfolio company. The acquisition of PersonalizeDx by Rosetta Genomics is expected to close within the next several weeks and is contingent upon the closing of Prelude’s purchase of PersonalizeDx from a third party.
PersonalizeDx is a rapidly growing molecular diagnostics and services company serving community-based pathologists, urologists, oncologists and other reference laboratories across the U.S. Through this transaction Rosetta Genomics will gain proprietary tests in prostate, bladder and lung cancer, strong commercial and laboratory operations capabilities and a state-of-the-art, high-complexity CLIA laboratory in Lake Forest, California.
The purchase price includes $2.0 million in cash, 500,000 ordinary shares of Rosetta Genomics Ltd., some specified assets and certain services to be provided by Rosetta Genomics to Prelude Corporation. In connection with this transaction Rosetta Genomics will gain rights to market Prelude’s novel assay for ductal carcinoma in situ (DCIS).
“The acquisition of PersonalizeDx will have wide-ranging, positive financial, commercial, operational and pipeline impact on Rosetta Genomics, and brings with it exceptional talent to complement the industry-leading team at Rosetta Genomics. The PersonalizeDx business is an excellent strategic and cultural fit, and we look forward to combining their assays and biomarkers with our current and future microRNA-based and other assays. With the expected close of this transaction, we extend a warm welcome to our new colleagues from PersonalizeDx,” said Kenneth A. Berlin, President and Chief Executive Officer of Rosetta Genomics.
“In joining forces with PersonalizeDx, Rosetta Genomics will gain critically important commercial and revenue scale in the marketplace for oncology diagnostics, along with a strategic focus on delivering high-value content that aids in diagnoses, optimizes treatment decisions, enables targeted therapy selections and facilitates treatment monitoring. A shared commitment to unsurpassed quality and turnaround time and to improving the lives of people with cancer will guide our operations and contribute to our success,” added Mr. Berlin.
According to Olav Bergheim, Managing Director of Fjord Ventures, “Rosetta Genomics, with its commitment to being a leading provider of differentiated and proprietary content in the area of personalized medicine, is a great strategic fit for PersonalizeDx. In addition to world-leading expertise in microRNA-based assay development, Rosetta Genomics brings strong reimbursement capabilities and service lab operational know-how.”