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Cancer Genetics Cancels Planned Merger With NovellusDx

NEW YORK (GenomeWeb) – Cancer Genetics (CGI) said today that it has cancelled a previously announced merger with NovellusDx.

Under an agreement announced in September, Jerusalem-based NovellusDx was to merge with a newly formed Israeli subsidiary of CGI. The transaction was aimed at combining CGI’s portfolio of cancer tests and lab service offerings with NovellusDx’s next-generation sequencing and machine-learning technologies for cancer treatment response prediction.

"Based on difficulties we have had in advancing the merger process, as well as certain other factors, we believe it was in the best interests of Cancer Genetics and our shareholders to terminate the merger agreement with NovellusDx," said CGI CEO John Roberts in a statement.

The Rutherford, New Jersey-based precision oncology company said it will now pursue alternative strategies and financial transactions to enhance shareholder value. The company will work with financial advisor Raymond James & Associates to consider other strategic avenues, including transactions to raise additional capital, acquire another company or assets, or potentially selling the company or merging with another firm.

In the meantime, according to Roberts, CGI has continued to streamline its operations and strengthened its management team while positioning the firm to focus on its biopharma business, improve lab processes, and ink partnerships to establish new revenue streams for long-term growth.

In morning trading, CGI's stock price was down around 30 percent at $.39 on the Nasdaq.