US cancer diagnostics company Veracyte (Nasdaq: VCYT) has announced that it has reached a definitive agreement to acquire Israeli-US company C2i Genomics. Under the terms of the agreement, Veracyte will pay $70 million in shares at closing, and up to an additional $25 million in milestone payments over the next two years, payable in Veracyte shares or cash as Veracyte chooses.
C2i Genomics has raised $112 million to date including a huge $100 million financing round in April 2021 at the peak of the fundraising hike in general and biotech and genomics in particular. So the company is receiving less than it has raised.
Most of the investors in the most recent, large financing round were foreign funds including Section 32, iGlobe partners, Duquesne Family Office, Casdin Capital, Driehaus Capital. Gigi Levi-Weiss's NFX, Israeli fund Lionbird and Tech.bio invested in the seed round and could be making a profit on the exit.
C2i Genomics is a minimal residual disease (MRD) cancer detection company. The company's whole-genome, artificial intelligence-powered approach generates broad signatures from blood more quickly and efficiently than bespoke panels. C2i Genomics MRD solution requires less than a tube of blood (as little as 3-4 ml blood, or 1-2 ml plasma), can go from sample to result in just two weeks, and delivers improved performance compared to imaging and other molecular tests.
Veracyte CEO Marc Stapley said, "MRD detection and monitoring is a large, rapidly growing space that provides critical information to physicians and their patients. The expected acquisition of C2i Genomics will enable us to expand our role across the cancer care continuum to help monitor the success of a therapeutic or surgical intervention, and determine the best course of action for each patient. We believe that C2i Genomics’ whole-genome technology will enable earlier detection of MRD and recurrence than imaging and other molecular tests, resulting in better patient outcomes, with faster results and smaller sample requirements. This will further fuel our vision to transform cancer care for patients all over the world."
C2i Genomics cofounder and CEO Ezra Sofer said, "Our vision has been to provide clinicians with deeper insight into their patients’ cancer so that we can help improve treatment outcomes worldwide. Our goal since the inception of the company has been to introduce our robust solution into the clinic. I’m incredibly proud of the progress our team has made and believe that Veracyte, with its strong presence in multiple cancer indications and its powerful commercialization capabilities, will accelerate this vision into a reality."
C2i Genomics was founded by Sofer with Asaf Zviran and Boris Oklander.
Published by Globes, Israel business news - en.globes.co.il - on January 8, 2024.
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