US-based Cancer Genetics Inc (CGI), a NASDAQ-listed company that provides DNA-based diagnostics, has acquired Hyderabad-based BioServe Biotechnologies (India) Pvt Ltd, providing genomic and molecular services, for around $1.9 million in an all-stock transaction.
“With BioServe, CGI will become better positioned to increase our global presence in personalised cancer care and further improve outcomes and lower costs for cancer patients,” said Panna Sharma, CEO of Cancer Genetics.
According to the release, the transaction is expected to close during the third quarter of 2014 and is subject to customary closing conditions and government approvals in India.
Post transaction BioServe India will become a subsidiary of CGI and will be renamed as Cancer Genetics India Pvt Ltd. CGI will retain all 33 employees of the company and will expand its operations in India.
“We share the belief that genomic services, next-generation sequencing and personalised diagnostics have tremendous potential in the country and can grow multi-fold in the coming years,” said Venkatadri Bobba, General Partner at Ventureast.
This will also mark an exit for Ventureast which had previously invested in the company through its Biotechnology Venture Fund. This fund invests in sectors like biotechnology, pharmaceuticals and agriculture and ancillary industries.
Apart from BioServe India, it has invested in companies like pharmaceutical products distributor Evolva Biotech, healthcare service company Cecilia Healthcare, novel therapeutics for cancer treatment manufacturer Marillion Pharma and organic products retailer Sresta Natural, among others.
BioServe India, which provides genotyping and DNA synthesis, counts organisations like Dr. Reddy’s, Indian Institute of Science Education & Research and the Centre for Cellular and Molecular Biology as its clients.
After this acquisition, BioServe India will integrate CGI’s DNA probe manufacturing proprietary FHACT test into the market which accounts for more than 25 per cent of global deaths due to cervical cancer.
According to a report by American Cancer Society, global cancer costs are expected to reach $458 billion by 2030.
(Edited by Joby Puthuparampil Johnson)