Enzymatics picks up bioinformatics expertise in up to $50M buyout
Enzymatics is expanding its offerings in the DNA sequencing market with the buyout of startup ArcherDx, which provides kits and software for evaluating cancer treatment. Add up the cash, Enzymatics equity and potential milestone fees in the deal, and the buyout could be worth up to $50 million.
This amount seems sizable considering that former Ion Torrent scientist Jason Myers launched ArcherDx just 9 months ago, Xconomy reported. Yet Enzymatics aims to move beyond providing reagents used in next-generation sequencing machines to the business of providing kits and related analysis software for use with DNA decoders in diagnostic medicine.
Myers and his team in Boulder, CO, plan to stick together in the Rockies as part of Enzymatics, which is a fast-growing company based in the Boston suburb of Beverly. Myers is becoming chief scientific officer of Enzymatics. Myers also brings the experience of helping to advance the next-gen sequencing from Ion Torrent, a group owned by Life Technologies ($LIFE).
"We are also truly excited to welcome Jason and his team of scientists and bioinformatics researchers to our rapidly growing company," said Enzymatics CEO Jon DiVincenzo in a statement.
Diagnostics provide a growing market for NGS players, and companies with the technology to deliver Dx products have become hot commodities. Last month, Gene By Gene announced its acquisition of the bioinformatics startup Arpeggi to move into the NGS diagnostics game.
"Next-generation sequencing and personalized medicine are one of the most rapidly growing areas of our industry, and we see Enzymatics catalyzing this revolution in genomic healthcare," DiVincenzo told FierceMedicalDevices. "There is high demand from clinical researchers interested in genomic technologies, which should fuel Enzymatics' organic growth, as we launch products from ArcherDx in the coming months, and also through further acquisitions in this space."