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LabCorp to buy molecular genetic tests provider Sequenom

MDBR Staff Writer Published 28 July 2016

Laboratory Corporation of America Holdings (LabCorp) has signed an agreement to acquire Sequenom, for an enterprise value of about $371m.

Based in San Diego of California, Sequenom is engaged in the development of molecular technologies and sensitive laboratory genetic tests for non-invasive prenatal testing (NIPT) and carrier screening.

Under the deal, LabCorp will purchase all of the outstanding shares of Sequenom in a cash tender offer for$2.40 per share or an equity value of $302m.

As per terms of the deal, LabCorp has created an acquisition subsidiary, Savoy Acquisition, which will commence a tender offer to purchase all outstanding shares of Sequenom.

Subject to customary closing conditions, the deal is expected to complete by the end of this year.

Focusing primarily on prenatal care, Sequenom Laboratories has developed a wide range of laboratory tests.

The firm’s molecular genetic tests are available under the names of HerediT, HerediT Universal, MaterniT Genome, MaterniT 21 Plus, NextView, SensiGene and VisibiliT.

These tests offer early patient management information for obstetricians, geneticists, and maternal fetal medicine specialists.

LabCorp chairman and CEO David King said: “Sequenom’s market-leading NIPT and genetic testing capabilities will advance LabCorp’s strategy to deliver world-class diagnostic solutions.

“This is exactly the kind of strategic acquisition that LabCorp seeks: Sequenom was the first laboratory to offer a clinically validated NIPT test (MaterniT21) and has performed more than 500,000 tests to date.”

Sequenom president and CEO Dr Dirk van den Boom said: “Strategically, this transaction makes sense. LabCorp is the world’s leading healthcare diagnostics company, providing comprehensive clinical laboratory and end-to-end drug development services.”

With around 50,000 employees, LabCorp provides diagnostic solutions to clients in around 60 countries.


Image: Sequenom is engaged in developing molecular technologies and sensitive laboratory genetic tests. Photo: courtesy of Suwit Ritjaroon / FreeDigitalPhotos.net.