The acquisition lets Myriad acquire the maker of EndoPredict, which just received reimbursement status from Aetna and meets ASCO guidelines for payment by Medicare contractors.
Myriad Genetics announced Tuesday it had acquired Sividon Diagnostics, the maker of EndoPredict, a test that predicts progression of breast cancer and fits with the company’s strategy to produce molecular diagnostics for every step in healthcare, from gauging risk to deciding treatment.
The purchase, for approximately $39.2 million US dollars, allows for up to $16.8 million more in performance-based payments. Myriad was already Sividon’s partner for marketing EndoPredict in Europe, and the acquisition comes as the test is gaining reimbursement status in the United States. Aetna covers the test, and payment from Medicare contractors is anticipated, due to support in guidelines from the American Society of Clinical Oncology.
In a statement, Myriad President and CEO Mark C. Capone said EndoPredict will be “the foundational product” of the company’s transition to kit-based tests, which allow the diagnostic test to be evaluated in a hospital instead of the test material being shipped to a specialized laboratory. Myriad is “transitioning the product to the Thermo Fisher QuantStudio platform as a key step in the international kit strategy,” the statement said.
EndoPredict is backed by 5 studies involving 4000 patients and has been used by 13,000 patients worldwide. A leading prognostic test, it gauges breast cancer aggressiveness and guides patients whether to pursue chemotherapy. It fits with the company’s “4-in-6” strategy of creating tests that (1) evaluate risk of disease (2) confirm diagnosis (3) establish prognosis and (4) select therapy. Myriad seeks to cover this ground across 6 therapeutic areas: oncology, urology, preventive care, dermatology, autoimmune disease, and neuroscience.
“Sividon brings to Myriad the best-in-class breast cancer prognosis test and strengthens our market leading oncology portfolio of high value personalized medicine products,” Capone said.
Christoph Petry, CEO of Sividon Diagnostics, said Myriad had strengths in the regulatory, reimbursement and commercialization areas to bring the test to a larger market, which both companies feel is poised to grow.
Outside the United States, EndoPredict will seek coverage status in the United Kingdom, Canada, and Germany during 2016.