Sema4 to buy genetic testing company GeneDx for $623 million

Sema4 has signed a definitive agreement to acquire genetic testing company GeneDx from OPKO Health for approximately $623 million.

GeneDx provides advanced genomics testing to patients and their families, offering a clinical genomics program with expertise in exome sequencing for rare and ultra-rare pediatric genetic diseases.

Through this agreement, Sema4 plans to strengthen its genomic and clinical data intelligence platform based on artificial intelligence (AI).

The transaction includes an upfront payment of $150 million, 80 million Sema4 shares, and an additional $150 million based on revenue milestones achieved over the next two years.

With estimated pro forma revenue of $350 million expected this year, the combined company is expected to become one of the largest and most advanced providers of genomics clinical tests in the United States.

Sema4 Founder and CEO Eric Schadt said, “This acquisition gives us the opportunity to accelerate the use of genomics as a standard of care by providing a deeper menu of precision medicine solutions to our partners across the health system to better meet their clinical needs.

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“Adding the comprehensive dataset and capabilities of GeneDx to our offerings enables us to inform an even wider range of diseases, closing the gap between the practice of medicine and the availability of more clinically usable.

“GeneDx’s operational prowess and market-leading cost structure in exome and genome sequencing will also help accelerate our path to improved gross margins and profitability.”

The company noted that GeneDx’s rare disease diagnostics and exome sequencing services will bring more than 2.1 million expert-annotated phenotypes and more than 300,000 clinical exomes to bolster its 12 million anonymized clinical records for patients. Traversa and Centrellis platforms.

Traversa is Sema4’s genomic analysis platform, which is used to optimize health screenings, and Centrellis is its health intelligence platform.

The company plans to use the combined database of health information to transform therapy development and patient care.

The transaction, which is subject to Sema4 shareholder approval and other closing conditions, is expected to close in the second quarter of the year.

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