NEW YORK – Nucleosomes-based testing company VolitionRx announced on Monday that its subsidiary Belgian Volition has entered into an agreement to acquire its epigenetic reagent supplier Octamer for €650,000 ($724,604).
The aggregate purchase price consists of €350,000 in cash and about 73,000 shares of common stock of Volition in exchange for all of Octamer's outstanding shares. Volition said it will issue shares to Octamer in a private placement.
It added that the firms will also enter into a five-year royalty agreement that provides royalties based on the sales by Gräfelfing, Germany-based Octamer of recombinant nucleosomes to pharmaceutical companies for use in the development, manufacture, and screening of molecules for use as therapeutic drugs.
Belgium is the center of research and development activities for Austin, Texas-based Volition. The firm said that the strategic acquisition helps it secure the supply of the recombinant nucleosome used as the calibrant and one of the key components of its Nu.Q platform, which identifies early nucleosomic markers of cancer.
The deal "will also facilitate the transfer of know-how and expertise so that we can develop the capability to manufacture recombinant nucleosomes ourselves," Volition CEO Cameron Reynolds said in a statement.
Octamer manufactures and sells histones, octamers, and DNA templates in addition to nucleosomes. These reagents can be used for custom applications in epigenetic research and drug discovery, Volition said.
Volition said it expects the acquisition to close in Jan. 2020.