Salt Lake City-based Myriad Genetics has acquired the up-and-coming Crescendo Bioscience Inc. for $245 million in cash. The full price is $270 million, but $25 million will be subtracted from the final purchase price to repay a loan Myriad previously made to Crescendo. Crescendo, based in South San Francisco, Calif., specializes in molecular testing for patients with autoimmune disorders. It was founded in 2002. Last year it was ranked the second-fastest-growing health care company in the United States on Deloitte’s Technology “Fast 500” list. The acquisition gives Myriad a chance to diversify its product offerings, particularly in light of a recent U.S. Supreme Court ruling that barred it from holding patents over single genes. That essentially opened the door to other laboratories to offer tests similar to one Myriad offered for diagnosing the genetic likelihood of a patient developing breast cancer. “This acquisition diversifies our business into a new high-growth, multibillion-dollar market opportunity,” said Peter D. Meldrum, Myriad’s chief executive officer. One of Crescendo’s most well-known molecular tests, Vectra DA, tests for the presence and progression of rheumatoid arthritis. It affects as many as 1.5 million people in the United States, including tens of thousands of children. The numbers afflicted […]
Salt Lake City-based Myriad Genetics has acquired the up-and-coming Crescendo Bioscience Inc. for $245 million in cash.
The full price is $270 million, but $25 million will be subtracted from the final purchase price to repay a loan Myriad previously made to Crescendo.
Crescendo, based in South San Francisco, Calif., specializes in molecular testing for patients with autoimmune disorders. It was founded in 2002. Last year it was ranked the second-fastest-growing health care company in the United States on Deloitte’s Technology “Fast 500” list.
The acquisition gives Myriad a chance to diversify its product offerings, particularly in light of a recent U.S. Supreme Court ruling that barred it from holding patents over single genes. That essentially opened the door to other laboratories to offer tests similar to one Myriad offered for diagnosing the genetic likelihood of a patient developing breast cancer.
“This acquisition diversifies our business into a new high-growth, multibillion-dollar market opportunity,” said Peter D. Meldrum, Myriad’s chief executive officer.
One of Crescendo’s most well-known molecular tests, Vectra DA, tests for the presence and progression of rheumatoid arthritis. It affects as many as 1.5 million people in the United States, including tens of thousands of children. The numbers afflicted by the disorder are expected to rise as the baby boomer population continues to age.
In addition to Vectra DA, Crescendo has been developing a variety of molecular assays focused on autoimmune disorders that are expected to be released in the coming years.
“We envision multiple opportunities over the next several years where, as a combined company, we can expand our presence into international markets and provide new innovative products that help improve the lives of patients suffering from autoimmune diseases,” said William Hagstrom, Crescendo’s chief executive officer. “I believe Myriad will enable us to move to the next level in terms of scale and growth.”
Takeaway: Myriad’s setback by last year’s Supreme Court decision on gene patents appears to be only temporary, as it uses the Crescendo acquisition to diversify its product offerings.
