Veracyte to acquire C2i Genomics for $70M upfront

Veracyte announced it has reached a definitive agreement to acquire C2i Genomics, a minimal residual disease, or MRD, detection company, adding whole-genome MRD capabilities to its novel diagnostics platform and positioning Veracyte to expand its offerings along the cancer care continuum. Under the terms of the agreement, Veracyte will pay $70M in Veracyte shares at closing, and up to an additional $25M based on the achievement of future performance milestones over the next two years, payable in Veracyte shares or cash at Veracyte’s election. Veracyte’s first application of C2i Genomics’ technology will be a muscle-invasive bladder cancer MRD test, where it plans to leverage its strong urology commercial channel and a clear pathway to expected reimbursement. The company plans to develop further MRD tests in several of its focused indications. Veracyte expects the upfront purchase price to be subject to customary balance sheet adjustments and the transaction to close in the first quarter of 2024.