NorDiag has entered into an agreement to acquire the diagnostic company Genpoint AS. The acquisition will strengthen NorDiag's technological platform and reduce time to market for a fully automated genetic test for screening of colorectal cancer (Screenfec).
The combined company will have a broader product portfolio in cancer and infectious diagnosis, as well as internationally extended management and R&D resources.
The ambition is to build a leading gene based diagnostics company in 3- 5 years.
The agreement implies that NorDiag acquires minimum 90.1 percent of the outstanding shares in Genpoint. Provided that all the Genpoint shareholders agrees to sell their shares, a total of 9.8 million NorDiag shares will be issued as consideration to the Genpoint shareholders.
The total consideration for all Genpoint shares is equal to NOK 83.3 million. New shareholders in NorDiag include, Start-fondet, Biovekst, Mattias Uhlen and Braganza.
The combined company will have outstanding technology in DNA sample collection, preparation and analysis. This will make it possible for NorDiag to create an automated offering to laboratory partners for genetic tests, both an improved third generation of its diagnostic Genefec test, and its future screening product Screenfec.
Colorectal cancer affects one in 20 persons in the Western world, with around 1 million new cases every year. Governments all over the Western world are considering screening programs, and NorDiag`s gene based test offer considerable benefits over traditional tests.
Moreover, the combined company will have enhanced opportunities to broaden its product portfolio. Genpoint already have technology for sample preparation in infectious diseases, and NorDiag is working on solutions related to other cancer types like pancreas and lung cancer.
Together the two companies will have extended resources, both with respect to competence and with respect to intellectual property rights, with an international profile.
As part of the transaction, Marten Wigstol is appointed Group CEO of the combined company. Wigstøl is currently Chairman of the Board in both NorDiag and Genpoint. Christian Horn, today`s CEO in NorDiag, will continue as Senior Vice President M&A/Strategic Affairs, to increase focus on acquisitions and strategic collaborations as an important part of NorDiag`s growth strategy.