Invitae-ArcherDX Merger to Create Precision Oncology Powerhouse

While M&A deal volume remains abnormally low, business is expected to pick up this summer as the reopening process gets into high gear. Meanwhile, a few new deals are being made, including transactions of major strategic significance.

Invitae to Merge with ArcherDX

In one of the year’s most significant deals, Invitae announced on June 22 that it plans to acquire fellow cancer genetics firm ArcherDX for $1.4 billion, including $325 million in cash, 30 million shares of Invitae common stock upfront and 27 million more shares later upon the achievement of certain milestones.

The Financing: To finance the deal, Invitae plans to sell $275 million in common stock, $16.85 per share, in a private placement. The firm has also entered into a credit facility of up to $200 million with Perceptive Credit Opportunities Funds.

The Strategy: Already a leader in genetic testing to assess hereditary cancer risk, Invitae will bolster its tumor profiling services and liquid biopsy technology by acquiring ArcherDX’s precision oncology assets, including its Stratafide pan-cancer test for identifying actionable genomic alterations from blood and tissue samples and Personalized Cancer Monitoring platform to assess the progress of cancer treatment and detect early signs of recurrence.

“From the beginning, Invitae’s goal has been to aggregate the world’s genetic tests into a single platform in service of our mission to bring comprehensive genetic information into mainstream medicine,” noted Invitae CEO Sean George in a statement. In his own statement, ArcherDX CEO Jason Myers said that the firm’s products can help bring precision oncology into regional and community settings, where the majority of cancer patients receive care, and address an estimated $45 billion market opportunity.

Here’s a summary of the key M&A diagnostic deals announced in June 2020: