Quest Diagnostics to acquire Haystack Oncology for $300M

Quest Diagnostics and Haystack Oncology, an early-stage oncology company focused on minimal residual disease (MRD) testing to aid in the early, accurate detection of residual or recurring cancer and better inform therapy decisions, announced a definitive agreement for Quest to acquire Haystack in an all-cash equity transaction. Following the close of the acquisition, Quest expects to adapt the MRD test developed at Haystack as the basis for new clinical lab services available beginning in 2024. Development efforts will focus initially on MRD tests for colorectal, breast and lung cancers. Under the terms of the agreement, Quest will pay $300M in cash at closing, net of cash acquired, and up to an additional $150M on achieving future performance milestones. The company expects the acquisition to be modestly dilutive to earnings over the next three years and accretive by 2026. The transaction is expected to be completed in the second quarter, subject to customary regulatory review.