Integrated DNA Technologies (IDT) is investing in next generation sequencing (NGS) research assays from Invitae Corporation under the trademarked name Archer.
Invitae’s NGS research assays have been “foundational in researching novel cancer fusions” and will help IDT labs “uncover biomarkers,” according to a press release.
The divestiture means IDT will now own the Archer research assays — VariantPlex, FusionPlex, LiquidPlex and Immunoverse panels — and bioinformatics, Archer’s Boulder, Colorado facility and licensed rights to Invitae’s Anchored Multiplex PCR (AMP) technology. The two parties will also enter a supply agreement with IDT supporting Invitae’s services.
Structured as an asset deal, the deal is worth $48 million in cash considerations.
An assay is a research test to determine the amount of a specific substance and its functional activity.
IDT will not acquire Archer IVD and PCM-related products as part of the transaction.
“The acquisition of the NGS research assays aligns with our focus to accelerate the pace of scientific discovery, laying the foundation for IDT to become a leading oncology research solutions provider,” said Demaris Mills, president of IDT, in a statement. “The products, tools, talent and licensed technology will enable us to grow our NGS platform and unlock new market opportunities for IDT.”
The transaction will bring more than 100 associates under the IDT umbrella.
Invitae believes selling off the research assays will allow them to pursue profitable growth in its core genetic testing business.
“Many of our talented employees are transferring to IDT immediately, and we expect a seamless transition for the customers that rely on the RUO kitted solutions,” said Ken Knight, president and CEO of Invitae, in a statement. “AMP technology, the foundation for our precision oncology services, including related patents and proprietary know-how, will remain with Invitae.”
NGS research assays were formally known as Invitae’s Research Use Only (RUO) kitted solutions. Invitae will agree to a five-year not-to-compete agreement with the RUO business, as well as other restrictions.
Invitae acquired ArcherDX, a genomics analysis company, in October 2020 in a deal valued at $1.4 billion, according to Fierce Biotech.
More: In 2020, IDT launched a business entity in Shanghai, China.