Cancer Genetics Announces Sale of India Operations to REPROCELL Incorporated
May 02 2018 - 9:36AM
Cancer Genetics, Inc. (Nasdaq:CGIX), a leader in enabling precision
medicine for oncology through molecular markers and diagnostics,
today announced that it has completed the sale of BioServe
Biotechnologies (India) Private Limited, a wholly-owned subsidiary
of Cancer Genetics to biomedical research company, REPROCELL
Incorporated, for $1.9 million.
Under the terms of the definitive agreement, Cancer Genetics
received an upfront payment of $1.6 million in cash from REPROCELL.
The remaining balance will be payable approximately 6 months from
closing and is subject to BioServe’s revenues for a four month
period post-closing being equivalent to the same four month period
in 2017.
“The sale of BioServe to REPROCELL is consistent with our
2018 transformation and strategic plan to focus our business and
execute against a path to profitability. We expect this
transaction will be beneficial to the Company and our
shareholders," said Jay Roberts, Interim Chief Executive Officer
and COO of Cancer Genetics. “For CGI, this divestiture is one of
several deliberate actions to focus our business, simplify our
operating structure and generate monetary value to help fund new
programs and assist in reducing overall operating expenses.
Additionally, as part of our forward looking strategy, we intend to
explore licensing opportunities with REPROCELL, among other
business partners internationally, to bring our vast test and
services menu to other regions with high demand and volume
expectations. Overall, we remain focused on developing and bringing
to market unique and innovative diagnostic assets from our industry
leading pipeline and collaborating with biopharma companies to
augment their therapeutics development capabilities.”
The Company announced on April 2, 2018 that it has engaged
Raymond James & Associates, Inc. as a financial advisor to
assist with evaluating options for the Company’s strategic
direction. These options may include raising additional capital,
the acquisition of another company and / or complementary assets,
the sale of the Company, or another type of strategic
partnership. The Company’s Board of Directors is committed to
evaluating all potential strategic opportunities and to pursuing
the path most likely to create both near- and longer-term value for
Cancer Genetics’ shareholders.
ABOUT CANCER GENETICS Cancer Genetics, Inc. is
a leader in enabling precision medicine in oncology from bench to
bedside through the use of oncology biomarkers and molecular
testing. CGI is developing a global footprint with locations in the
US, Australia and China. We have established strong clinical
research collaborations with major cancer centers such as Memorial
Sloan Kettering, The Cleveland Clinic, Mayo Clinic, Keck School of
Medicine at USC and the National Cancer Institute.
The Company offers a comprehensive range of laboratory services
that provide critical genomic and biomarker information. Its
state-of-the-art reference labs are CLIA-certified and
CAP-accredited in the US and have licensure from several states
including New York State.
For more information, please visit or follow CGI at:
Internet: www.cancergenetics.com
Twitter: @Cancer_Genetics
Facebook: www.facebook.com/CancerGenetics
MEDIA RELATIONSKirsten Thomas 508-280-6592
kthomas@theruthgroup.com |
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INVESTOR RELATIONSLee Roth 646-536-7012
lroth@theruthgroup.com |
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Forward-Looking Statements: This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements
pertaining to Cancer Genetics Inc.’s expectations regarding the
completion, timing, pricing and size of the offering described in
this press release constitute forward-looking statements.
Any statements that are not historical fact (including, but not
limited to, statements that contain words such as “will,”
“believes,” “plans,” “anticipates,” “expects,” “estimates”) should
also be considered to be forward-looking statements.
Forward-looking statements involve risks and uncertainties,
including, without limitation, risks that the anticipated benefits
of the divestiture will not be realized, risks that we will not be
able to negotiate and enter into license agreements
with REPROCELL on favorable terms to us or at all, risks
inherent in the development and/or commercialization of potential
products, risks of cancellation of customer contracts or
discontinuance of trials, risks that anticipated benefits from
acquisitions will not be realized, uncertainty in the results of
clinical trials or regulatory approvals, need and ability to obtain
future capital, maintenance of intellectual property rights and
other risks discussed in the Cancer Genetics, Inc. Form 10-K for
the year ended December 31, 2017 along with other filings with the
Securities and Exchange Commission. These forward-looking
statements speak only as of the date hereof. Cancer Genetics, Inc.
disclaims any obligation to update these forward-looking
statements.
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