Myriad Genetics Inc. announced that it has entered into a definitive merger agreement to acquire privately-held Rules-Based Medicine (RBM) of Austin, Texas for $80 million in cash. The deal expands Myriad’s research portfolio into new disease states, including psychiatric disorders, infectious diseases and inflammatory diseases, and adds eight new molecular diagnostic product candidates to Myriad’s already strong pipeline. RBM’s history of strategic alliances with over 20 major pharmaceutical and biotechnology companies, coupled with Myriad’s position in PARP inhibitors and PI3K inhibitors, creates a leading franchise in companion diagnostics. Furthermore, the RBM acquisition provides Myriad with access to patient cohorts for new diagnostic development and is expected to enhance Myriad’s industry-leading DNA and RNA technologies with unparalleled strength in protein discovery and analysis.
“We believe the acquisition of RBM will enhance Myriad’s capacity to deliver transformative molecular and companion diagnostic products to patients suffering from major, common diseases,” said Peter Meldrum, President and Chief Executive Officer of Myriad Genetics. “RBM’s extensive product pipeline includes tests for anti-psychotic drug safety, hepatitis C drug response and detection of kidney damage in diabetes patients and will augment Myriad’s strong oncology pipeline.”
“RBM has succeeded in developing over 550 immunoassays and a proprietary multiplex immunoassay technology for the discovery of novel protein biomarkers,” said Craig Benson, President and Chief Executive Officer of Rules-Based Medicine. “With its heritage as an innovator in the molecular diagnostics field, Myriad is perfectly suited to take RBM to the next stage and commercialize our products that can improve the quality of one’s life.”
Rules-Based Medicine is a leader in the discovery of novel biomarkers for its pharmaceutical and biotechnology partners utilizing its proprietary multiplex immunoassay technology. RBM’s protein detection platform provides pharmaceutical companies with critical information that can accelerate drug development research and improve clinical trial outcomes. The Company’s 2010 revenues were approximately $25 million, with operations approaching breakeven, after adjustment for non-recurring activities.
Myriad intends to continue to operate RBM from its facilities in Austin, Texas, as a wholly-owned subsidiary under the name Myriad RBM, Inc. The company will perform companion diagnostic discovery and development in collaboration with its pharmaceutical partners in addition to research projects for internal development. Myriad will place RBM’s commercial diagnostic operations under its molecular diagnostic laboratory in Salt Lake City, Utah. Myriad is pleased to welcome the approximately 160 talented and dedicated RBM employees to the Myriad team and believes this strategic combination will further Myriad’s goal of marketing transformative molecular diagnostic products that save lives and reduce healthcare costs.
Under the terms of the merger agreement, RBM will be acquired on a cash- and debt-free basis. The purchase price will be financed with cash on hand. Myriad believes that the acquisition provides an opportunity for an attractive return on investment and should be accretive to earnings within two years. Further details on the impact of the transaction to future revenue and earnings will be shared on the Company’s upcoming quarterly earnings call, scheduled for May 3, 2011. The transaction is expected to close on, or before, May 31, 2011 but is subject to customary closing conditions.
RBM was advised on this transaction by Jefferies & Company, Inc.
Date: April 27, 2011
Source: Myriad Genetics Inc.