Cancer Genetics Expands Oncology Business Through Acquisition
Cancer Genetics acquired a business that will help them expand their oncology offerings and mark in this sector.
Last week (August 14), Cancer Genetics (NASDAQ:CGIX) announced it will acquire vivoPharm, a company with developed capabilities in early development and discovery, with special talents in immuno-oncology models. Now a report indicates the significance of this acquisition with the oncology sector.
As part of the announcement Panna Sharma, president and CEO of Cancer Genetics (CGI), said in the release that this acquisition boosts the company’s profile as a “premier partner for oncology therapeutic and diagnostic development.” As the oncology sector gains prominence, many companies are positioning themselves to see gains from research in the area.
Sharma added the acquisition expands CGI’s biopharma strategy and “adds capabilities to enable our strategy to rescue and repurpose oncology drugs.” This transaction will cost CGI approximately $12 million.
CGI’s latest acquisition specializes in studies for drug discoveries with a focus on oncology and immuno-oncology. “Ranging from early compound selection to developing comprehensive sets of in vitro and in vivo data, as needed for FDA [IND] applications,” the company explained.
Expansion of Oncology area for Cancer Genetics
“Our teams are dedicated to working closely together to deliver a complete end-to-end solution from discovery and early development through companion diagnostic development and patient monitoring,” CEO and managing director of vivoPharm Dr. Ralf Brandt said.
Dr. Brandt will now be the president of discovery and early development services with CGI, while also integrating 32 people into the company.
“CGIX is now expected to generate more than an estimated $30 million in revenue, has secured a $16 million equity raise of which $13 million remains available, and has built a somewhat firm position as an emerging leader in the field of cancer research,” research from CNA Finance indicated on Thursday. The data also points to favorable recommendations for CGI by analysts.
“CGIX has a consensus price target of $8.50 per share and holds Strong Buy recommendations from both James Dawson SE and Rodman & Renshaw based on each firms coverage of the company. In addition to those, Benchmark has provided a Speculative Buy rating and a price target of $6.00 per share.”
Like many aspects of the life science sector, patience is often the biggest ally for companies. Immuno-oncology therapies have solidified themselves as one of the most innovative and exciting sectors in cancer treatment.
Cancer Genetics’ share price dipped 15.07 percent the day following the acquisition news. Since Monday (August 21), shares of the company have regained momentum, increasing 6.06 percent to $3.50 at the close on Thursday (August 24). Year-to-date, Cancer Genetics’ share price has seen a hefty 155.56 percent increase.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.