NEW YORK (GenomeWeb) — Constellation Alpha Capital, a special purpose acquisition company, announced today that it has signed a non-binding letter of intent to acquire DermTech.
DermTech develops diagnostics for skin cancer and other skin diseases, including a pigmented lesions assay and noninvasive biopsy kit for melanoma detection that was approved in Canada about a year ago. The company — headquartered in La Jolla, California — also provides molecular pathology services through its CLIA-certified laboratory, which is also accredited by the New York State Department of Health.
Under the the terms of the proposed transaction, DermTech will become a wholly-owned subsidiary of Constellation in exchange for shares of Constellation common stock, with DermTech shareholders expected to own a majority of the combined company's shares. A definitive agreement is expected to contain a minimum cash closing condition of $15 million and close in the second quarter.
"DermTech has developed a deep pipeline of dermatology-focused diagnostic tests with superior clinical sensitivity, improved patient comfort due to non-invasive sample collection, and meaningful cost savings for payors," Constellation Chairman and CEO Rajiv Sarman Shukla said in a statement. "We are excited to bring this potential opportunity to our shareholders."
Palm Beach, Florida-based Constellation was founded in 2015 for the sole purpose of acquiring or entering into a business arrangement with other companies, with a focus on healthcare and manufacturing in India. The publicly traded firm stated in a filing with the US Securities and Exchange Commission last month that it would cease operations if it did not complete a business combination by March 23.