Cancer Genetics Inc. Sells Businesses To Raise Cash & Lower Debt
Cancer Genetics Inc. (Rutherford, NJ) has sold its clinical lab business to siParadigm LLC (Pine Brook, NJ) for an initial payment of approximately $1 million, plus an earn-out based on test volume over the next 12 months. Cancer Genetics’ clinical lab business specializes in cancer testing, and reported revenue of $7.4 million in 2018, down from $10.8 million in 2017.
siParadigm operates a cancer testing lab in northern New Jersey. The company was founded by its President Sherif A. Nasr, MD in 2003. Prior to founding siParadigm, Nasr was an Associate Medical Director at Quest Diagnostics.
In a separate transaction, Cancer Genetics sold its biopharma services business to Interpace Diagnostics (Parsippany, NJ) for approximately $23.5 million, including assumed debt. The biopharma business, which reported revenue of $14.8 million in 2018, performs molecular tests at labs in
Rutherford, NJ and Research Triangle Park, NC for cancer drug development clients.
Following these transactions, Cancer Genetics will focus on its remaining discovery services business, which performs preclinical studies and provides testing services to guide new drug development for biotech and pharmaceutical companies. The company’s discovery business generated
revenue of $5.2 million in 2018, up from $3.7 million in 2017.
Cancer Genetics aims to lower debt, raise cash and trim losses through the sale of the two businesses. Since its inception in April 1999 through March 31, 2019, Cancer Genetics has accumulated losses of $162 million. Most recently, the company reported a net loss of $4.7 million on revenue of $6.8 million for the three months ended March 31, 2019.
Cancer Genetics went public through an IPO in June 2013 and shortly thereafter its stock hit an all-time high of $21 per share giving it a market value of $100+ million. Most recently, its shares were trading at $0.12 for a market capitalization of $7 million.