NEW YORK – BioAffinity Technologies said Tuesday that it has acquired the laboratory assets of Village Oaks Pathology Services, which is doing business under the name Precision Pathology Services, for $2.5 million in cash and $1.0 million in BioAffinity common stock.
San Antonio, Texas-based BioAffinity said that the acquisition, which was made by a newly created wholly owned subsidiary named Precision Pathology Laboratory Services (PPLS), will help it accelerate market uptake of its CyPath Lung test, which uses flow cytometry and AI analysis for the early detection of lung cancer.
Precision Pathology has already been offering CyPath as a laboratory-developed test. BioAffinity said the deal will help it build a commercial laboratory capable of offering the test at scale to support its upcoming 1,800-patient FDA trial as well as developing additional tests.
Precision Pathology offers a variety of lab services including SARS-CoV-2 and influenza testing, anatomic pathology, morphological staining, histological services, DNA extraction, STI testing, and women’s and men’s health testing.
Roby Joyce, Precision Pathology's founder, will join BioAffinity's board of directors and will serve as medical director of PPLS. BioAffinity has also signed an agreement with Village Oaks under which that firm will provide staff, equipment, and administrative support for a fee. The initial term of the agreement is 20 years.
"This acquisition represents a tremendous opportunity for both organizations to create a stronger, more complete platform to address unmet needs in cancer diagnostics," Joyce said in a statement.
"Combining the groundbreaking innovation and expertise of both companies supports the launch of our FDA pivotal trial for CyPath Lung and further advances our ability to develop additional products, including a test for COPD," BioAffinity President and CEO Maria Zannes said in a statement. "This consolidation also allows BioAffinity to capture 100 percent of the revenues from the sale of CyPath Lung."