Genomic testing firm Fulgent Genetics is acquiring Inform Diagnostics, an independent national pathology laboratory, for approximately $170 million. Inform Diagnostics currently provides pathology services to approximately 1,300 clients who represent over 2,700 physicians.
This acquisition brings Fulgent “One step closer to our long-term vision of being a one-stop shop for many clinical specialties and biopharma organizations,” said Brandon Perthuis, Chief Commercial Officer of Fulgent. “We plan to continue to innovate genomics and pathology by launching novel services aimed to improve health outcomes of patients.”
Fulgent also reported estimated preliminary first quarter total revenues of $300 million, which is above previous guidance of $245 million. Upon closing, the transaction is expected to have a positive impact to pro forma EBITDA. Fulgent now expects core revenue for FY 2022 to be approximately $175million, compared to previous guidance of $120 million, including potential revenue contribution from the proposed acquisition.
Fulgent performs full-gene sequencing with deletion/duplication analysis in an array of panels that can be tailored to meet specific needs. Its menu of customizable genomic testing offerings covers over 18,400 genes across infectious and rare disease, reproductive health, and oncology. The company also offers cloud computing, pipeline services, record management, web portal services, clinical workflow, sequencing as a service, and automated lab services.
With the addition of Inform Diagnostics, Fulgent will be able to further expand its test menu into breast pathology, gastrointestinal pathology, dermatopathology, urologic pathology, neuropathology, and hematopathology.
Fulgent also aims to leverage Inform Diagnostics’ nationwide client base, established commercial organization, and managed care relationships as potential catalysts for expanding many of Fulgent’s existing services,
“We see a meaningful opportunity to leverage Inform Diagnostics’ deep network of physician and managed care relationships across Fulgent’s existing core business, including test offerings such as HelioLiver, heme-onc NGS services, and CSI’s menu of products,” said Perthuis.
With the addition of Inform Diagnostics’ extensive testing capabilities, nationwide salesforce, and significant managed care contracts, Fulgent sees valuable cross-selling opportunities with Inform Diagnostics’ national GI and GU specialist client base, including Fulgent’s newly launched liquid biopsy test for Hepatocellular carcinoma, HelioLiver, as well as an upcoming molecular test for urology, which is pending launch.
“We look forward to further expanding Fulgent’s genomic testing footprint with the addition of the Inform Diagnostics team, pathology capabilities, and nationwide reach of Inform Diagnostics,” added Ming Hsieh, Chairman and CEO of Fulgent.
Fulgent expects to offer high-value NGS-based oncology services to Inform Diagnostics’ hematology clients. Inform Diagnostics’ client relationships will enable Fulgent to access more patients along key touch points to provide a comprehensive suite of diagnostic products and services leading to improved healthcare. Further, the deal extends Fulgent’s in-network relationships with managed care organizations to over 300 million covered lives. The acquisition also expands Fulgent’s geographic footprint with the addition of CLIA, CAP, and NY State certified laboratories in New York, Arizona, Massachusetts, and Texas
“Today marks an exciting and important milestone for Inform Diagnostics and we look forward to bringing our team, testing capabilities, and technological advances, onto the Fulgent platform,” said Darryl Goss, CEO of Inform Diagnostics.
He added that, “We believe that with Inform Diagnostics’ capabilities across hematopathology, neuropathology, and anatomic pathology, coupled with our nationwide footprint of physician and managed care relationships, we will create a truly differentiated and comprehensive genomic testing suite for physicians and patients. We are fully aligned with Fulgent in our mission to profoundly impact patient care, one diagnosis at a time, while living the same core values. Physicians and patients should continue to expect the same commitment and excellence as we offer our now expanded services at the forefront of technological innovation.”