Photo by National Cancer Institute/ Unsplash
C2i Genomics, an Israeli medtech startup that develops new procedures for the treatment of cancer, is being acquired by American cancer diagnostics company Veracyte for as much as $95 million. Veracyte will pay $70 million in Veracyte shares at closing, and up to an additional $25 million based on the achievement of future performance milestones over the next two years, payable in Veracyte shares or cash at Veracyte’s election.
Veracyte is a global diagnostics company whose vision is to “transform cancer care for patients all over the world.” The Veracyte Diagnostics Platform delivers “high-performing cancer tests that are fueled by broad genomic and clinical data, deep bioinformatic and AI capabilities, and a powerful evidence-generation engine, which ultimately drives durable reimbursement and guideline inclusion for our tests, along with new insights to support continued innovation and pipeline development.”
C2i Genomics is the first company to develop the most comprehensive whole-genome monitoring of cancer recurrence and progression by analyzing subtle changes in the pattern of the tumor’s DNA.
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C2i Genomics’ whole-genome, artificial intelligence-powered approach generates broad signatures from blood more quickly and efficiently than bespoke panels. The company’s 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 believes this ability, when combined with its own prognostic and diagnostic tests, will enable physicians to track a tumor’s progression as it evolves from early diagnosis through patient treatment and follow-up.
Veracyte’s first application of C2i Genomics’ technology will be a muscle-invasive bladder cancer MRD test, where it plans to leverage its strong urology commercial channel and a clear pathway to expected reimbursement. The company plans to develop further MRD tests in several of its focused indications.
Veracyte expects the upfront purchase price to be subject to customary balance sheet adjustments and the transaction to close in the first quarter of 2024.
“Our vision has been to provide clinicians with deeper insight into their patients’ cancer so that we can help improve treatment outcomes worldwide,” said Ezra Sofer, chief executive officer and co-founder of C2i Genomics. “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.”
“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,” said Marc Stapley, Veracyte’s chief executive officer. “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.”
