Myriad Genetics Inc, Salt Lake City, a personalized medicine company specializing in molecular diagnostics, has signed a definitive agreement to acquire Counsyl, South San Francisco, Calif, a provider of reproductive testing products, for $375 million, through a combination of cash and Myriad common stock. Myriad expects the transaction to close during the first quarter of the company’s fiscal year 2019, making Counsyl a wholly owned subsidiary of Myriad.
Since its founding in 2007, Counsyl has experienced rapid growth, generating more than $134 million in revenue and performing over 280,000 reproductive genetic tests in the past 12 months.
“By offering Counsyl’s best-in-class reproductive testing products in conjunction with Myriad’s leading hereditary cancer tests, we are well positioned to be the premier women’s health genetic testing company,” says Mark C. Capone, president and CEO of Myriad Genetics. “The Counsyl management team has a remarkable track record of success, and combining our commercial capabilities will lead to a three-fold increase in physician reach for Counsyl’s reproductive tests.”
“We are excited to be joining the global leader in personalized medicine to create the largest women’s health genetic testing company in the world,” notes Ramji Srinivasan, CEO of Counsyl. “As our physicians increasingly look for a single source of genetic testing, we can leverage our collective strengths to provide the highest quality genetic tests with a seamless customer experience.”
Myriad estimates that the companies will perform 900,000 carrier screening tests and 1.3 million noninvasive prenatal tests in the United States during fiscal year 2018. The company projects high future growth, with an anticipated 3.5 million total reproductive genetic tests in the United States during fiscal year 2023, representing a market of over $1.5 billion.
The acquisition positions Myriad to offer a comprehensive suite of women’s health products and serve as a single source of genetic tests for physicians in the field of women’s health. In addition to Myriad’s hereditary cancer test, Counsyl adds Foresight, an expanded carrier screening test covering 175 clinically actionable conditions, and Prelude, a noninvasive prenatal screening test.
Myriad further forecasts potential for the expansion of reproductive genetic test coverage by commercial insurance in the United States, noting the adoption of broader professional guidelines by the American College of Obstetricians and Gynecologists (ACOG) for carrier screening, and the possibility of expanded coverage for noninvasive prenatal screening for women with average-risk pregnancies.
Myriad’s women’s health sales force currently comprises approximately 225 sales representatives. When combined with Counsyl’s approximately 80 sales professionals, the team will represent the largest women’s health sales force in molecular diagnostics and provide a three-fold increase in physician reach for reproductive testing.
Integration of the two companies will also promote the unique capabilities within each company. For example, Counsyl’s patient-centric software tools and electronic medical record integration can be leveraged across the entire portfolio of Myriad products.
To learn more, visit Myriad Genetics.