Sema4 announced Tuesday that it is acquiring GeneDx, a move the health intelligence firm expects will enhance its data-driven insights and improve its market position in women’s health and rare disease diagnostics.
Deals in Stamford, CT Sema4 GeneDx’s parent company, Miami-based OPKO Health, also secured a $200 million private deal from growth and life sciences investors including Pfizer, which will strengthen Sema4’s balance sheet.
In a press release, the newly combined company expects it will be “One of the largest and most advanced providers of genomic clinical tests in the United States, with projected 2022 pro forma revenue of $350 million. “
CEO of GeneDx, Katherine Stueland will join Sema4’s founder and leader Eric Schas co-CEO of Sema4; she will join Sema4’s Board of Directors.The latest move is at Sema4 through Nearly $800 Million SPAC Merger Partnered with CM Life Sciences last July. Shares of Sema4 closed down nearly 15% at $3.45 a share on the Nasdaq Global Select Market on Tuesday, but started climbing again in initial after-hours trading.
“Sema4 has made significant investments to create the most clinically advanced data insights engine for patients, clinicians, health systems and biopharma partners,” Schadt said on the conference call.
“Acquiring GeneDx will accelerate our efforts and enhance our value proposition… transforming Sema4 into a larger, stronger company with a faster path to profitability,” he said. “From a strategic perspective, this transaction will strengthen our current leadership in comprehensive reproductive health genomic testing solutions and provide us with an immediate opportunity to leverage GeneDx’s operational excellence.”
He also touted the newly formed leadership team, particularly the commercial and operational experience Stueland brings to Sema4.In addition to operational excellence, Stueland will Focus on Sema4’s diagnostic business. Schadt said he will focus on leading R&D, Sema4’s IT platform components, the strategic development of the company’s health intelligence capabilities, and collaborations with health systems and biopharma.
Former Foundation Medicine CFO Jason Ryan will chair Sema4’s board of directors.
Stueland said on Tuesday’s conference call that she admired the work GeneDx did even before she officially joined the company. “For years, it has been a quiet pioneer in diagnosing the most difficult-to-diagnose patients,” she said.
Now, leadership wants the combined company to improve patient diagnostics faster and more professionally and make precision medicine the standard of care. “This is a truly transformational combination of company, technology and team,” said Sturan. “And it will only accelerate our two growth plans aimed at improving healthcare for everyone.”. “
Photo: Andy, Getty Images
