Myriad Genetics to Acquire Crescendo Bioscience
The transaction is expected to close before the end of Myriad's fiscal year 2014, pending satisfactory completion of customary closing items and regulatory approval. A discussion of the acquisition will be provided during Myriad's second fiscal quarter earnings call later today at
"Crescendo Bioscience fits well into our diagnostic portfolio that is focused on saving lives and improving the quality of life of patients across major diseases," said
"Crescendo has built a strong and growing position in the rheumatoid arthritis diagnostic market, and I believe Myriad will enable us to move to the next level in terms of scale and growth," said
Crescendo was founded in
In 2013, Crescendo was ranked the 2nd fastest growing healthcare company in
Benefits of the Transaction
- Facilitates Myriad's Entry into the High Growth Autoimmune Market: Myriad sees a major growth opportunity for molecular diagnostics to aid patients in the autoimmune market. Beyond rheumatoid arthritis there are several other areas in rheumatology as well as the broader autoimmune market where molecular diagnostics could play a major role in patient risk assessment, diagnosis, prognostic outlook and therapy selection. This complements Myriad's current disease focus which includes products in oncology, women's health, urology, and dermatology.
- Diversifies Myriad's Product Revenues: A core strategic initiative for Myriad is to continue to diversify its revenue stream into new attractive markets. Vectra DA represents a
$3.0 billionglobal market opportunity, and Myriad believes Crescendo will be a major growth driver for the Company looking forward.
- Enhances Myriad's Strength in
Protein-Based Diagnostics: Myriad, a world leader in molecular diagnostics, believes that it will further strengthen its leadership position in protein diagnostics with the acquisition of Crescendo. The three major sources of novel biomarkers are DNA, RNA, and proteins and Myriad believes that Crescendo will contribute significantly to Myriad's industry leading diagnostic product pipeline and complement the protein expertise at Myriad RBM.
- Creates Opportunities to Leverage Myriad's Commercial Infrastructure: As one of the largest molecular diagnostic laboratories in
the United States, Myriad expects to leverage its operational expertise in customer service, sales and marketing, managed care, and product development to further expand Crescendo's domestic business. Additionally, Myriad's expects that its international presence will open up new market opportunities for Crescendo's products outside of the United States.
- Offers Long-Term Financial Benefits: Myriad expects Crescendo to generate significant operating profits in the future and to be accretive to earnings beginning in fiscal year 2016. In
April 2013, Vectra DA received national coverage for reimbursement by the Centers for Medicare and Medicaid Services(CMS) and is in the process of obtaining private insurance coverage. The typical RA patient may be monitored with a Vectra DA test at least twice per year.
Financing and Approvals
Myriad intends to fund the transaction entirely through cash on hand and anticipates having sufficient cash following the transaction to continue its current
The Company will discuss the proposed acquisition during its second fiscal quarter earnings call on
About Crescendo Biosciences
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the timing of the closing of the proposed acquisition; the fit of Crescendo into the Company's diagnostic portfolio and diversification of the Company's business as a result of this acquisition; the expected addition of Crescendo employees to the Myriad team; Crescendo's position in the rheumatoid arthritis diagnostic market and its ability to move to the next level in terms of scale and growth with the Company's assistance; Crescendo's vision of multiple opportunities over the next several years; the anticipated benefits of the acquisition of Crescendo set forth under the caption "Benefits of the Transaction;" the Company's intent to fund the transaction entirely through cash and marketable securities on hand and the Company's expectation of having sufficient cash following the transaction to continue its current
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