Novartis to acquire companion diagnostics maker Genoptix for around $470: Sanofi extends Genzyme offer

Swiss drug major Novartis (NOVN: VX) has entered into a definitive agreement to buy USA-based Genoptix (Nasdaq: GXDX), a specialized laboratory providing personalized diagnostic services to community-based hematologists and oncologists. The acquisition will enhance Novartis' tools and services that aim to improve health outcomes for patients by advancing the ability to define and monitor individualized treatment programs.

Under the terms of the deal, Novartis will commence a tender offer for all outstanding shares of common stock of Genoptix at $25.00 per share in cash. This represents a total equity value of $470 million and an enterprise value of $330 million. The offer implies a 27% premium over the closing price of $19.76 on January 21, 2011, and has been backed by the US firm’s board of directors which recommends shareholders’ acceptance. Completion is expected in the first half f this year.

"The acquisition of the Genoptix medical laboratory will serve as a strong foundation for our individualized treatment programs," said Joseph Jimenez, chief executive of Novartis. "Genoptix is an innovative company with a talented team of people who share our commitment to transforming the way medicine is practiced. By integrating Genoptix within Novartis, we can greatly enhance the value we add to patients, clinicians, payers and society."