NeoGenomics buys VC-backed Inivata for $390m

Alessia Argentieri
05 May 2021

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Nasdaq-listedТ cancer diagnostics specialist NeoGenomics has acquired a majority stake in Cambridge-based Inivata т a cancer genomics company backed by a pool of VC investors т for $390m.

Following this acquisition, Inivata will become a separate business division focused on liquid biopsy, alongside NeoGenomics' clinical, pharma and informatics divisions. Current Inivata CEO Clive Morris will become the president of Inivata and will report to Mark Mallon, CEO of NeoGenomics.

The cash purchase price will be funded with balance sheet cash and through a private placement of equity, with expected gross proceeds of $200m, led by a group of institutional investors consisting of legacy Inivata shareholders, existing NeoGenomics investors, and a number of oncology-focused specialist investors.

NeoGenomics initially backed Inivata in May 2020, making a $25m equity investment to acquire a minority stake with an option to buy the business outright. It also took a seat on Inivata's board of directors. The funding was used to advance the commercialisation of Inivata's liquid biopsy test InVisionFirst-Lung.

Previous funding
Cambridge Innovation Capital, Imperial Innovations and Johnson & Johnson Innovation led a £4m funding round for the company in 2014. Subsequently, they took part in a £31.5m series-A round in 2016, alongside Woodford Investment Management.

The company raised $52.6m in a series-B round in March 2019. The injection was provided by previous backers Cambridge Innovation, Johnson & Johnson Innovation and Woodford Investment, as well as new investors RT Ventures and IP Group.

NeoGenomics invested $25m in in Inivata in 2020. More recently, Soleus Capital led a $35m series-C funding round for the company in February 2021, with participation from Janus Henderson Investors, Farallon Capital and IP Group.

Company
Inivata was founded in 2014 and performs research and development in clinical cancer genomics using circulating DNA analysis with a focus on liquid biopsy.

The company's flagship product is InVisionFirst-Lung, a ctDNA next-generation sequencing liquid biopsy assay testing 37 genes relevant to the care of advanced non-small-cell lung cancer. It is able to detect the tiny amounts of ctDNA released by the tumour by identifying hallmark genetic mutations.

The company is headquartered in Cambridge, UK, with a laboratory located in North Carolina, US.

People
NeoGenomics – Mark Mallon (CEO).
Inivata – Clive Morris (CEO).
Cambridge Innovation Capital – Robert Tansley (partner).

Advisers
Equity – Goldman Sachs (corporate finance); Ropes & Gray (legal).
Company – Perella Weinberg Partners (corporate finance); K&L Gates (legal).