New Day Diagnostics has entered into an asset purchase agreement with Epigenomics AG, a molecular diagnostics company focused on blood testing for the early detection of cancer. This agreement is the l result of negotiations previously disclosed by Epigenomics AG in their ad hoc announcement dated June 12, 2023.
The announcement comes on the heels of New Day Diagnostics’ recent merger with EDP Biotech and furthers the company’s mission of expanding the availability of cost-effective early-detection products to patients, the organization says.
Under the terms of the agreement, New Day Diagnostics would acquire substantially all of Epigenomics AG’s assets and intellectual property. The acquisition would expand New Day Diagnostics’ portfolio in the cancer diagnostics space and include proprietary biomarker technology for the detection of methylated DNA in various cancer indications, including Epi proColon, a screening tool for the non-invasive detection of colorectal cancer.
“We began a mission nearly two decades ago to drive accessibility of cost-effective early detection products. The addition of Epi proColon expands the company portfolio to include a much needed non-invasive CRC screening test that is both affordable and convenient,” says Eric Mayer, CEO of New Day Diagnostics. “And we are excited to explore additional possibilities for the methylated DNA biomarker in improving patient outcomes for other indications.”
The commercialization of Epi proColon “Next-Gen” is one of the expected outcomes of the sale of Epigenomics assets to New Day Diagnostics. This, coupled with an increased likelihood of reimbursement by CMS, would allow the company to make an important contribution to reducing cancer disease and deaths.
“There is a great deal of strategic alignment between our companies,” says Jens Ravens, executive of Epigenomics. “Because of this, I feel confident that the best of our products and biomarker technology will move into the next chapter of bringing a blood-based colorectal cancer diagnostic to the market that is both affordable and accessible.”
New Day Diagnostics specializes in designing, developing, and bringing to market diagnostic tests, and the Epigenomics assets would further enhance the company’s ability to develop and commercialize diagnostic tests for earlier intervention and improved patient outcomes, according to the company.
TCB Capital Advisors, an affiliate of Weild & Co., acted as the exclusive financial advisor to New Day Diagnostics on this transaction, and Brock Shipe Klenk PLC, Orrick Herrington & Sutcliffe LLP, and Merchant & Gould acted as New Day Diagnostics’ legal advisors.