LONDON: Schroder UK Public Private Trust’s portfolio company Inivata Limited has been acquired by NeoGenomics Inc., a leading provider of cancer-focused genetic testing services and global oncology contract research services.
The acquisition follows a $25 million minority equity investment by NeoGenomics in Inivata in May 2020, at which time NeoGenomics was granted a fixed price option to purchase the remainder of Inivata for $390 million.
Inivata with its leading liquid biopsy technology platform will remain a separate business division alongside NeoGenomics’ growing clinical, pharma and informatics divisions.
Inivata will be focused on the continued development of leading liquid biopsy tests including RaDaR™, the highly sensitive personalized assay for the detection of residual disease and recurrence.
The closing of the transaction is subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions. The Company expects the completion of the transaction in June 2021.
Based on the terms of the transaction, the Company expects to receive total proceeds of $38.6m (or £27.6 million based on the current exchange rate) on completion of the transaction.
It is anticipated that the Company’s AIFM will revalue the Company’s holding in Inivata, leading to a significant uplift to the latest carrying value of £13.1 million as at 31 December 2020 (latest valuation, adjusted for the partial disposal to Rosetta Capital as announced on 27 January 2021). This will be reflected in the NAV as at 31 March 2021, which is expected to be announced in early June 2021.
The Company intends to use the proceeds to support some of its portfolio companies with follow-on capital and to make new investments into both public and private companies.
Tim Creed and Ben Wicks, Portfolio Managers of the Company, jointly commented: “We are proud to have supported Inivata. Clive Morris and his management team have compiled a truly world class team of liquid biopsy experts and have done an outstanding job over the last few years. This divestment is another milestone in a series of successful realisations in 2021 and the proceeds will be used to make fresh investments to create value for our shareholders.
We have an exciting pipeline of opportunities, both new and within the existing portfolio, which we believe can deliver attractive long-term capital growth whilst remaining true to the Company’s origins to have a portfolio with a mix of both public and private companies”.
Inivata is a leader in liquid biopsy. Its InVision platform unlocks essential genomic information from a simple blood draw to guide and personalize cancer treatment, monitor response and detect relapse. Inivata’s technology is based on pioneering research from the Cancer Research UK Cambridge Institute, University of Cambridge.
Its lead product, InVisionFirst®-Lung is commercially available internationally and through NeoGenomics in the US. It offers competitive sensitivity and turnaround, providing molecular insights that enable clinicians to make more informed treatment decisions for advanced non-small cell lung cancer patients. Inivata has also launched the personalized RaDaR® assay – allowing the highly sensitive detection of residual disease and recurrence – which has been granted Breakthrough Device Designation by the US FDA.
Inivata is partnering with pharmaceutical, biotechnology companies and commercial partners in a range of early and late-stage cancer development programs. The Company has a CLIA certified, CAP accredited laboratory in Research Triangle Park, NC, USA, and R&D laboratories in Cambridge, UK.
