Cancer diagnostics company Exact Sciences Corp. has purchased OmicEra Diagnostics, a German startup specializing in proteomics, or large-scale protein analysis.
The deal closed Monday, according to a filing with the U.S. Securities and Exchange Commission.
In an earnings call with investors on April 26, Exact Sciences chairman and CEO Kevin Conroy mentioned that the company had agreed to acquire OmicEra as he discussed the company's development pipeline, including its efforts to develop a multi-cancer early detection test based on multiple biomarkers. He said OmicEra is an emerging leader in proteomics biomarker discovery.
"This highly skilled team will deepen our proteome profiling capabilities, helping uncover the best biomarkers to include in our advanced cancer tests," Conroy said.
Madison-based Exact Sciences (Nasdaq: EXAS) did not respond to a request for additional comment about the acquisition.
The company agreed to resell up to 265,186 shares of its common stock — less than 1% of its total outstanding shares — in connection with its acquisition of OmicEra Diagnostics, according to a prospectus supplement filed Monday. Given the stock's closing price Monday of $57.45, the transaction is valued at more than $15 million.
In a question during the April 26 earnings call, Exact Sciences analyst Mark Massaro of BTIG LLC referred to the OmicEra deal as a "small tuck-in" acquisition and asked Conroy about the potential for larger merger and acquisition activities.
After joking about Twitter being "off the table," referencing the social media company's recent decision to sell to Elon Musk for $44 billion, Conroy said Exact Sciences would consider buying companies that could contribute to its long-term strategy that are a good culture fit and create shareholder value.
Conroy noted that PreventionGenetics, a Marshfield-based company Exact Sciences bought last year for $190 million, added a strong team and is projected to contribute $40 million to $42 million in revenue in 2022. Exact Sciences projects around $2 billion in total 2022 revenue.
OmicEra Diagnostics is based in Planegg, Germany, near Munich. It could not immediately be reached for comment. The company's CEO and co-founder is Ole Vorm.
Exact Sciences is hyper-focused on its flagship Cologuard at-home colon cancer test; its Oncotype portfolio of breast, colon and prostate cancer tests; and its pipeline programs, which include advancements in colon cancer screening and the multi-cancer test, Conroy said.
